Rent vs Buy in Cincinnati>Question Details

Trent Warner, Real Estate Pro in Cincinnati, OH

Whjat has been your experience with renter conversions to Buyers?

Asked by Trent Warner, Cincinnati, OH Tue Feb 1, 2011

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Shannon French’s answer
Hi Gershon...we find that marketing is everything. You gotta find the right buyers and the right sellers for your particular strategy. When you do, you don't have to "convince" them of anything. They know what they want, but don't know how to get it or know that they CAN get it. And when you are able to provide the solution, build and maintain rapport, and deliver a professional, ethical & legal solution...everyone wins!
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0 votes Thank Flag Link Tue Feb 1, 2011
I used to try to do the rent with option, and look for a quick conversion. i found you have to convince them upfront that they will be purchasing the house and quailify them upfront otherwise they don't buy. I always figured it was a mentality thing
0 votes Thank Flag Link Tue Feb 1, 2011
Our primary focus is placing rent-to-own Tenant/Buyers in homes and 90% of them ultimately purchase the home. I think I read somewhere that a seller should realistically expect that between 10-20% of rent-to-owners actually end up purchasing (which basically says "don't count on it"), but when you do it right, it should be the exception, not the rule, that don't go one to purchase.

I also read somewhere that the rental rates would increase due to the displaced families from all the foreclosures. I don't think I've seen evidence of this whatsoever in my market. Families are consolidating and we've seen more folks try to negotiate heavily down on the asking price saying "I'm looking at 10 other properties just today" or "I have this other house where the owner will take this...can you match it". Rents are still strong in Baltimore, but I haven't seen an increase.
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0 votes Thank Flag Link Tue Feb 1, 2011
Hello Trent,
I have had about a 20% conversion rate from my clients who I assisted in finding a rental property that have come back to me to purchase a year or two later.
Yes, I've seen rental prices increase in my region. I attribute it to workers relocating here that cannot afford to purchase and to all the home owners who have lost their homes or jobs and can no longer afford their mortgage payments so their only options are to move in with family or friends or rent. Increased demand= higher prices.
I expect this trend to continue.

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Tue Feb 1, 2011
It depends on the agent if you stay in touch with your clients your conversion rate should be easy

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Tue Feb 1, 2011
2009 and 2010 started marketing renters and i saw about 15% increase in renters converting into buyers
0 votes Thank Flag Link Tue Feb 1, 2011
I found this article concerning increasing rental prices. Lets market this!
0 votes Thank Flag Link Tue Feb 1, 2011
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