David Elson

Before you buy, consider Castle Rock. Castle Rock Colorado was chosen the very best place to live in the whole USA by Family Circle magazine! Small town atmosphere, wide streets, tall trees, mountain views and just 10 minutes to Park Meadows Mall (near Littleton). Great rental market as well.

David Elson
Castle Rock Real Estate
Metro Brokers DTC
303.745.5555 - Thu Apr 17 2008, 08:02

Beware of any de/re-winterization fees from the seller/bank if it is vacant. I use an inspector that pressurizes the lines which detects leaks w/o having the water turned on.

David Elson
Metro Brokers DTC
303.745.5555 - Thu Apr 17 2008, 07:54

Leslie,

Rent to own typically means the owner has promised to sell the property to the tenant for a certain price within a certain time frame. Often a portion of the rent paid will go toward either the purchase price or buyer's closing costs associated with the purchase in the form of a rent credit. In some cases, a non refundable option consideration deposit is collected.

Some Pros:
1) Part of the rent paid goes toward the purchase.
2) The tenant has the exclusive or first right to purchase the property.
3) The tenant can "test" the home and area first without fully committing to buying it.
4) The tenant locks in a price today for a purchase down the road. If the property goes up in value, the appreciation gained is theirs.

Some Cons:
1) The tenant may pay a premium for the advantages of these terms. (Higher than market rent)
2) The tenant may sacrifice some or all payments/deposits/credits if they do not to buy or perform as agreed.

Tenants and owners considering a rent to own agreement should negotiate the price, rent credit, deposit and time frames etc.. Keep in mind, for this to work, the tenant will need to qualify for a new loan and the property will need to appraise for the amount agreed. Closing costs, inspections, type of warranty deed, survey, appraisal etc. should be addressed up front. Who pays for what? What happens if there are complications?

Rent to own or lease option offerings can vary greatly. Often the scales are tipped in favor of the owner. I suggest anyone considering this type of arrangement use an attorney or licensed broker OF THEIR OWN that specializes in these types of transactions using Colorado Real Estate Commission approved forms when available. (Esp. the purchase agreement which protects both parties spelling out the details)

Leslie,

If you’re a property owner, rent to own usually attracts better tenants & higher rents. Be certain your closing net balances after payoff. (I've had owners miscalculate & need to bring money to the closing table)

If your a tenant, set up wisely, rent to own can build equity & provide pride of ownership from move in. It can also allow you to repair your credit if needed in preparation for purchase. However, if you have the ability & desire to buy today, I'd suggest you do so. There is a much broader selection of property & some fantastic deals on the market right now.


Deals like:
1 bedroom Condo in Denver SW overlooking green belt $39,900 (I closed last week)
2 bedroom Condo in Denver SW ground floor ranch $35,000 (Available- Bank owned)
4 bedroom 2 bath in Highlands Ranch for under $180,000 (Available- Bank owned)

If you'd like help constructing your rent to own or a list of available "deals" in your area & price range emailed to you... I'm here to assist.

Thanks!


David Elson
Castle Rock Real Estate
Metro Brokers DTC
303.745.5555 - Thu Apr 17 2008, 07:43

Here is the link for Douglas County / Castle Rock w/contact info: http://www.douglas.co.us/assessor/

David Elson
Metro Brokers DTC
Castle Rock CO
303.745.5555 - Fri Apr 11 2008, 17:14

John,

I'm a Broker working and living right here in Castle Rock and I can't find commercial solds history for Castle Rock online. When I need something of the sort, I go to the assessors office. They are super friendly and always eager to assist.

Good luck!

David Elson
Metro Brokers
303.745.5555 - Thu Apr 3 2008, 11:55

It depends on location, age, features, price and size. (Other agents insert "No duh Dave-tell us something useful" here)

Since this post in October I've showed, listed and sold several 2 bedroom condos here in Castle Rock. The ones that are selling are the ones that show AMAZING, priced COMPETITIVELY and have some unique feature buyer's can't find elsewhere in the price range. Example: My listing in BlackFeather (Black Feather Condominiums just South of Wal-Mart on Front St.) has a one car garage. I sold it quickly once we priced it comparable to similar listings WITHOUT a garage. You've got to stand out from the crowd.

I find today's market (Spring 2008) at least here in Castle Rock, looks promising. Showings on my listings are rapidly picking up. 6 showings on one listing in 5 days- WITH NO PRICE REDUCTION- that's pretty good compared to just a month ago, when the same listing had 2 showings in 3 months.

Anyone on the "listing fence", I'd say now is a great time to test the waters if:

1.) You can price your condo fairly. (If you owe more than it's worth- forget about it. Sit on it until what you owe is less that what it's worth)
2.) Your willing to make the necessary preparations for showings. (Like having it professionaly cleaned, all the little repairs completed -you know what they are- and finally consider professional staging.)
3.) You've got something unique not found elsewhere for the money. (Granite counter tops, stainless appliances, alarm system etc.)

David Elson
Metro Brokers DTC
Castle Rock CO
303.745.5555 - Fri Apr 11 2008, 17:11