Would you consider rent to own?

Asked by Patsyarnold62, Byron, GA Sat Sep 3, 2011

Help the community by answering this question:

+ web reference
Web reference:

Answers

4
Jonathan Rai…, Agent, Macon, GA
Sat Sep 3, 2011
I generally recommend against doing a rent-to-own program. Every person is different, so it's your best judgment. Here are a couple of reasons:

There are not many sellers offering a rent-to-own program. They either want to sell as soon as possible, or simply don't want to rent the house. That leaves you with a small selection of homes. You may wind up picking a home you don't really like because it was one of the few available. The alternative: rent until you're ready to buy. You'll have a much greater selection of homes to choose from.

Secondly, you as the tenant risk a good bit. You have to trust that the owner is going to follow through on his/her promises to either contribute to your down payment, or to provide other things requested in the contract. The owner may not do any major work on the house like replacing a roof, because he/she knows you'll be buying it and it will be your problem then.

Finally, you may still not be able to buy a home. If you have a major medical issue, or a job loss, then you've probably paid an option to buy the home, or have paid extra on rent to be able to have the lease-purchase deal. Unfortunately, that means you will have lost that investment if you still cannot buy the home. The owner keeps those fees; they aren't refundable.

Again, these are general issues, and may not apply. But, I generally recommend renting a place that you like for a few years, and set up a special savings account to put in money toward your home purchase. You'll also be surprised how easy it is to get a home loan, even with moderate credit issues. Georgia provides down payment assistance through a special program as well.

Best of luck!
0 votes
Sabrina Sutt…, Agent, Atlanta, GA
Sat Sep 3, 2011
Well Patsy, I can understand you frustration with the market, and no one knows how long it will take to recover, but with my experience with LP, the buyer is added to title as well. So their is a mutual interest in the property. I stay involve in the whole process and the owners have to show every three months that payments are current . The best thing to do also is to rent, repair your credit and buy a house.
0 votes
Steve Pate, Agent, Cumming, GA
Sat Sep 3, 2011
No, I would not. With the housing market continuing to decline, ho do you know what the house will be worth in the furure. Rent until you are ready to buy again. This market will continue for the next several years. Why lock yourself in when better may be available later. Every rent to own that I have seen lately is priced at above market value. What hapens if you put money down and the house later gets foreclosed on because the owner wasn't making the payments.
0 votes
Sabrina Sutt…, Agent, Atlanta, GA
Sat Sep 3, 2011
Patsy on this home he is not considering lease purchase, but I can find some lease purchase homes. Email me at sabrsut@yahoo.com
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more