Dylan Rowan, Other/Just Looking in Eau Claire, WI

How often are there homes available for rent to own? and how much is the average rent?

Asked by Dylan Rowan, Eau Claire, WI Thu Sep 27, 2012

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Charles Tiff…, Agent, Eau Claire, WI
Thu Sep 27, 2012
Dylan, rent to own is hardly different from land contract, in that you should have a written contract to state the terms of an agreement to get to the end result of ownership. It's not that simple and probably a lot more difficult than saving 3.5% of a downpayment for a very low interest loan. In today's real estate market you have a significant advantage in getting preapproval for a loan and then offering on listed properties. You should call me for a lengthy discussion on your options and for more info. on ownership if you want to live in Eau Claire or nearby. I look forward to hearing from you and hope to help you out in the very near future. Good luck Dylan!

Charlie Tiffany, Broker Associate
Prime Realty, LLC
715-495-1022
charlie@primerealtymidwest.com
0 votes
Anna M Brocco, Agent, Williston Park, NY
Thu Sep 27, 2012
Since rent to own properties may not be listed as such, consider working with an agent of your own. Keep in mind that rent to own can be risky and one could stand to lose a bit of money, therefore do inform yourself well, and consider consulting with an attorney who specializes in real estate beforehand. If you haven't done so yet, visit with any licensed loan officer, see if you can buy outright...
0 votes
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Thu Sep 27, 2012
Rent To Own is a better deal for the Seller than it would ever be for a potential Buyer.

The basic concept is finding a way to "force" savings towards a down payment by including a portion of the monthly rental that goes towards that savings. You pay your rent every month and your Landlord deducts a pre-determined amount to hold in a special bank account, called an "escrow" account. Your Landlord holds that money until you have saved up enough---through this "forced-savings" method---to meet a down payment to purchase the home.

The terms of the purchase price, including the down payment amount, and the amount to be set aside from the rental for down payment, are all set down at the time of lease signing.

It's all about helping the renter/tenant save up enough money for a down payment to buy a home (in this case, the one you're renting). But this is a better deal for the Seller because he gets to lock in a purchase price and a buyer today for a future sale.


Saving money for a down payment? Well, heck, you can do that on your own.


If you are dedicated to the idea of buying your own home, you can create your own savings plan to save up enough money for a down payment. And when you have saved up enough for a down payment, if that takes a year or two or more, YOU get to decide on the price you're willing to pay for the house at that time based on current market conditions. You won't be locked in to a price that may be a lot higher than what the house is worth in the future.

With Rent To Own you'll be locked in both to the house and to the price, even if it takes you 3 years to save enough through the forced savings of the rent payments. What happens if three years from now your life situation has changed? Maybe you need a bigger/smaller home. Maybe your employment has relocated. Maybe your credit or income is insufficient to qualify for a mortgage loan.


Find a way to save up on your own; not with Rent To Own.


Sit down with a local Mortgage Banker and get yourself prequalified, too. You may find you're better qualified than you think you are, and, if you're not, at least you'll know how much loan your income and credit qualify you for, and how much you have to save towards down payment and closing costs.

Trevor Curran
NMLS #40140
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