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Rent vs Buy in Phoenix : Real Estate Advice

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  • Local Info158
  • Home Buying922
  • Home Selling100
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Activity 12
Georgestrick…, Home Buyer in Phoenix, AZ
Sun Jul 31, 2016
Georgestrickland73 answered:
Can a person rent with bad credit and record?
0 votes 29 answers Share Flag
Sally Grenier, Real Estate Pro in Boulder, CO
Sun Dec 27, 2015
Sally Grenier answered:
Rent to own homes are pretty rare these days. They used to be more common when we were in a strong buyer's market (more sellers than buyers) and sellers would offer rent to own as an option to attract more buyers. However, most parts of the country are now in a very strong sellers market. Sellers want to sell, not rent to someone who may or may not qualify down the road.

Plus, rent to own is never a good option for a buyer. You're typically paying a higher rent, and that money may or may not be going toward your down payment. Plus what happens if you get to the end of your lease, and you still can't qualify? The seller can just keep your money. Why not use this extra money you plan on spending and put it toward paying down or paying off your debts?

I assume you're asking about rent to own because you can't qualify for a regular mortgage (due to credit issues)? You need to figure out what is keeping you from buying now, and fix those issues so you can qualify for a traditional mortgage down the road. Good luck!
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1 vote 1 answer Share Flag
Zak Himmelbe…, Real Estate Pro in Glendale, AZ
Sun Aug 10, 2014
Zak Himmelberger answered:
My experience helping clients with bad credit find rentals has been pretty straightforward. Credit didn't so much matter as did their ability to pay the rental amount and demonstrate their ability to pay with proper documentation such as paystubs, bank statements, etc. - Credit does matter but in my experience it has not the most important factor when choosing a renter. If you haven't had any previous evictions from rentals and have no violence or drug related criminal history, in my opinion, you shouldn't have too much trouble trying to find a rental.

You may offer to pay a higher deposit or first and last month's rent upfront as a way of demonstrating that you're serious and ready, able and willing to do what you must to rent a property.
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0 votes 1 answer Share Flag
James Wehner, Real Estate Pro in Scottsdale, AZ
Sun Jul 13, 2014
James Wehner answered:
I can help you with your options. Depending on your situation, there are more appropriate times to rent vs. buy and vice versa. We can work through the different scenarios with you.
0 votes 6 answers Share Flag
Troy Erickson, Real Estate Pro in Chandler, AZ
Tue May 21, 2013
Troy Erickson answered:
You can actually do some things to improve your credit score within a matter of a week. It all depends on whether you are willing to do the work, and pay the price in may cost you, but in the long run, it may be very beneficial. It is called a Rapid Rescore, and I can get you in touch with lenders that can help you out.

Also, a letter explaining your situation may help. I have had several renters with negative items on their history, but a letter explaining their situation cleared matters up, and they were able to rent.

A stable job is good, and if you have a stable rent history (with receipts), that will help as well.
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0 votes 5 answers Share Flag
Jennie Miller…, Real Estate Pro in Phoenix, AZ
Mon Sep 24, 2012
Jennie Miller, Pllc answered:
Are you considering purchasing a home, renting a home, or are you an investor?
0 votes 4 answers Share Flag
Ann Griffin, Real Estate Pro in Mesa, AZ
Thu Feb 23, 2012
Ann Griffin answered:
Single family home rentals are hot right now. After all, those unfortunate people who lost their homes still have to live somewhere! In fact right now it is tough for a buyer who needs a mortgage to write a competitive offer for lower-priced homes, and this is pushing some of them who'd prefer to buy, to rent instead because they just can't get their offers accepted. So it's working very much in favor of the investors right now.

Ann Griffin
480-789-9584
ann.griffin@pruaz.com
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0 votes 3 answers Share Flag
Kayne Thrift,  in Phoenix, AZ
Thu Sep 15, 2011
Kayne Thrift answered:
Trulia recently came out with a report finding that it is more affordable to buy than to rent a two-bedroom home in 72 percent of America's largest cities. The report lists the top 10 cities to buy instead of rent with Mesa ranking number four and Phoenix number five. Further, a recent government report cited the fact the average net worth of renters was $4,000 compared to $184,400 for home owners. If you look at Redfin and Corelogic's most recent reports it is very likely the Phoenix metro area is at or very near the bottom of the market relative to price. Combine all these factors with extremely low interest rates and buying a home is definitely worthy of consideration. The issue I'm seeing is many people have been hurt financially as a result of the poor economy and do not feel they have the credit scores to qualify for a home loan. Fixing your credit score seems like a daunting task, but there are people who can help. I've seen 50 to 100 point jumps in FICO scores in 60 to 120 days enabling borrowers with mid-500 scores to buy a home and begin to financially recover. ... more
0 votes 14 answers Share Flag
Crgardner, Home Seller in Phoenix, AZ
Fri Jun 24, 2011
Crgardner answered:
try looking into buyer/owner financing option in witch i have to offer as well as 30 houses for sale around the phoenix area .......might be worth checking into if you think so as well feel free to give me a call
-Cory 480-252-6655
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0 votes 4 answers Share Flag
Deborah Grif…, Real Estate Pro in Scottsdale, AZ
Fri May 20, 2011
Deborah Griffin answered:
Gregg,

Most owners of rental properties understand our current market conditions and understand that a lot of renters will have derogatory credit. I would be up front and let them know. Expect to have a background check done and they may require a larger deposit. If you have cash reserves, you can negotiate with prepaying a few months rent up front.

Best of luck!
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0 votes 4 answers Share Flag
L & R Proper…,  in Arizona
Thu Apr 7, 2011
L & R Property Management answered:
As a property management company that works closely with a several contractors, this agreement looks risky. Things to consider are what work needs to be done, because not all contractors are qualified for all repairs. You should get estimates for the cost of doing the work. By my math this agreement will have you paying him $25 per hour if this includes the materials then it is a good deal but if not you can probably get a better price. Over the course of a year this would add up to $ 6000 is there really that much work to do? As the other people have mentioned make sure you get all the details in writing including what work will be done, who pays for permits and inspectotions, ect, ect. ... more
0 votes 6 answers Share Flag
Stew Keene, Real Estate Pro in Scottsdale, AZ
Thu Feb 12, 2009
Stew Keene answered:
Shanda,

They are just as you described, they can be good or bad.

Scenario one: leasee options and moves in thinking they will purchase. 1 year goes by. The property values drop. Leasee wants price lowered. Seller wants the agreed value. Woops....

Scenario two: What Rick Said. They move in thinking they can clean up their credit and low and behold they buy that new car and guess what, woops....

Scenario 3: Leasee puts down 10k as a deposit to be used for EM in the event that they want to purchase the home. 1 year ends and they decide not to purchase the home. The seller accepted the deposit instead of the title company as a neutral escrow and spent the money to catch up on the payments. now it's gone, woops...

There are so many way a deal like a lease option can go wrong in a market like this. Usually it favors one party over the other and that isn't good for anyone. Best to stay with the traditional purchase option until the tide turns and stability comes riding in.

But the choice is yours...

All The Best,

Stew Keene
Signature Realty Group
Scottsdale, AZ
... more
0 votes 2 answers Share Flag
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