My wife and I would like to interview realtors in the Brooksville area the First week of Dec.

Asked by Dave C., Frederick, MD Wed Nov 19, 2008

We have a home in Royal Highlands that I had built 2005 with the intention of reselling it. Since the market tanked my wife and I have been going down to visit every other month. With the addition pressures of the financial markets we need to look at getting some mortgage relief on the property and would prefer a rent to own situation then making it a pure rental but, if we have to we would consider a rental. Want to find an agent that specializes in Rent to own.

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6
Bob Grieves, , Brooksville, FL
Wed Sep 23, 2009
I am available to discuss your options when you next visit. If you will provide your street address I will provide you this weekend an estimate of both the rental value and sales value. This can all be done via the internet.
My website is http://www.bobgrieves.com, telephone 352 678 3160 and email bobgrieves@gmail.com.
0 votes
Keith Sorem, Agent, Glendale, CA
Thu Nov 20, 2008
Dave

I have been in your shoes personally and have a couple of suggestions:

First, I would discuss the tax and financial implications with a CPA or a financial planner. Ask them what will happen WHEN YOU SELL. Begin with the end in mind.
Second, I would run some scenarios with the Realtor, ask them for THEIR advice on the best plan of action, pros and cons.
Third, I would be happy to refer you to a great REaltor with the experience that you need. You can contact me via my Trulia profile.

Good luck.
0 votes
The Florida…, Agent, Spring Hill, FL
Wed Nov 19, 2008
Hi Dave,

I'd say regardless of whether you're doing a rental or a lease-purchase you should be worrying about a persons credit (if the bank won't lend them the money to purchase, there's probably a reason). And essentially, a rental is the same as a lease-purchase except for the additional money down for the option.

Overall, your best bet is to sell the property outright NOW, rather than wait. Let's put some numbers to it...

Say your home is worth $150,000 which is on the high end for the majority of the homes in Royal Highlands right now...at least as far as the ones that are selling (remember, someone listing their home for $250,000 doesn't mean anything if they can't SELL for that much). You get a lease-option set up with $10,000 down. The market in Royal Highlands is currently declining by about 3% per month (moreso if you're on a limerock road). After just barely more than 2 months your property will have devalued by more than the $10,000 you took for the option and chances are your buyer will back out/want to renegotiate and you'll be out a SIGNIFICANT amount of money due to the market decline.

Granted, you can say "Well then, I'll just have to get a minimum of $50,000 down"...but then...who's going to put $50,000 down on a lease-purchase in a declining market when the homes value is only $150,000...?

Your best bet in this market is to either rent and wait it out (my guess is 5-7 years before values climb up to where you'd want to sell) or realize that you don't want to wait that long, price the property to sell, and sell it fast before it loses any more value (time is not your friend in this case).

Hope this helps!

-Josh
0 votes
Dave C., Home Seller, Frederick, MD
Wed Nov 19, 2008
Josh,

I understand that many of the rent to own deals don't go to closing. It use to be about 50%. I also know that agents want to be paid now. So, I would offer a percentage of the commission when the agent finds a rent to own occupant for the property. An additional part commission after a set period on the occupant stays in the property and then the balance at closing. So, if the the occupant does not go to closing then, when the agent finds another occupant I will pay them a percentage again.

Also, if I do a straight rental then, I need to worry about a person's credit, if I do a rent to own I only care about their income and how much they can put down.

Lastly, Short sale is out at least for now.

Dave
0 votes
The Florida…, Agent, Spring Hill, FL
Wed Nov 19, 2008
I do a significant amount of business in that area. Nobody specializes in "rent-to-own" because all too often those deals fall through and nobody gets paid (especially in a declining market...many times the "buyer" is better off to lose their deposit (even if sizeable) and back out/renegotiate the deal 1-2 years down the line due to the loss in property value).

Derek is on the money with you either deciding to 1) bit the bullet and sell the property (potentially at a loss or via short sale) or 2) renting it out through a property management company (I can recommend one if you'd like...I have 4 rental properties myself in Spring Hill).

That being said - I can see an agent working towards finding you a rent-to-own buyer if you were to pay the agent up front rather than at closing. Again, being that those deals 1) hardly ever happen and 2) almost never make it to closing, I know the only way that I would put my time/money into it is if I were paid either a flat fee or hourly for my time/work.

Hope that was helpful - it's certainly the best advice I can give. If you have any other questions, please don't hesitate to contact me at http://www.HernandoLuxuryHomes.com - I'd be happy to help however I can.

Thanks,

Josh
0 votes
Derek Joyner, , Winston Salem, NC
Wed Nov 19, 2008
It is going to be tough to find an agent that specializes in rent to own. You probably either need to find an agent who does property management. Or sell it and find an agent who specializes in marketing your home. Leave the door open for rent to own with this agent. So either go regular agent or go property manager agent. I dont think any agent specializes in rent to own.
0 votes
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