Home Buying in Springfield>Question Details

Angela, Home Buyer in Webster, MA

Hi Is it realistic to pay between 500-700 for a rent to own property in Ma.Why dont realty companies agressively advertize these type of properties?

Asked by Angela, Webster, MA Sat Aug 24, 2013

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Another factor is that in the Greater Boston area there is hardly a lack of ready, willing and able buyers. Its a desirable area to live. Rent-to-Own deals are highly technical and difficult for a real estate office to be compensated for. For example, is the commission based upon the full sale price at the time of signing, the total purchase price over time with interest when the buyer completes the full transaction? Would many agents/brokerages want to wait decades to be paid? Is there a potential for conflict of interest regarding the seller/purchaser/real estate professional? What about compensation if the buyer defaults? For these reasons and many more are why rent to own deals aren't popular with real estate professionals. The main being a traditional sale is what's most commonly desired by most home sellers.
0 votes Thank Flag Link Sun Aug 25, 2013
As for the first part of your question 500-700 per month as a mortgage would be for a property valued around $120k, again not as common a price east of Worcester. One situation where a rent to own might be attractive would be a retiree that owns several properties that for tax purposes would rather convert over time rather than take all the capital gains at one time. You'd have to identify these types of landlords.
0 votes Thank Flag Link Sun Aug 25, 2013
usually if people are willing to rent, they rent. If they want to sell they are usually not wanting to rent. Rent tow owns you see more on vacation properties and higher end listings that have a smaller buyer market.
0 votes Thank Flag Link Sun Aug 25, 2013
Angela,

There is no set amount that would be credited on a rent to own situation, It would be agreed on with the seller/owner.

Companies don't advertise them because most owners do not wish to rent to own, they would prefer to sell. The option you offer is for a home that is having a difficult time selling, either the price is too high, or the area is not in demand.
0 votes Thank Flag Link Sun Aug 25, 2013
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