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Rent vs Buy in Illinois : Real Estate Advice

  • All414
  • Local Info12
  • Home Buying251
  • Home Selling49
  • Market Conditions7

Activity 24
Sun Jul 26, 2015
Ron Thomas answered:
Lease/Option
You are desperate!
Your Credit or Finances, or both, will not allow you to go the conventional route:
You need the Seller to help you out!

The Seller will know it, and you are going to pay dearly for this service:
There aren't too many altruistic Sellers out there.

There is no FORM printed by anyone; there are just too many variables.
The terms that can be written into a Lease/Option can be dangerous to you:
How long is the Option period?
How much money are you putting in to the Option?
What happens if you are not able to execute the Option?
How do you know what your financial situation will be 2-5 years from now?
How much is the rent in the meantime?
Who will be responsible for maintenance and repair in the meantime?
What will be the Market Value of the home in 2-5 years?
What will be the Selling price 2-5 years from now?

This is the Ultimate Caveat Emptor!

Good luck and May God bless
... more
0 votes 4 answers Share Flag
Mon Oct 29, 2012
Alison Hillman answered:
Hi Patricia,

Can you please elaborate, what listing are you referring to?

Thanks,
Ali, Community Manager
0 votes 1 answer Share Flag
Sat Mar 15, 2014
Erik Gimbel answered:
Yes Theresa, I can get some rent to own listings. I should have a couple by next week. What are you looking for?

Erik Gimbel
Visionary Real Estate
847-530-3704
0 votes 7 answers Share Flag
Sun Nov 25, 2012
John Potter answered:
I have a listing for a nice five bedroom house near Midway on the West side of Chicago.
0 votes 5 answers Share Flag
Fri Apr 17, 2015
Tim Moore answered:
Wouldn't you think that sort of depends on a lot of things?
0 votes 12 answers Share Flag
Sun Nov 25, 2012
Linda Dressler answered:
Fatima~

At this point in time, it would be best to rent something you really like knowing that the owner would potentially sell in a few years rather than drawing up a rent to own option that might lock you into a less than favorable position in this still slightly downward market. I would be glad to help you in your rental search or to speak more about this with you on an individual basis. Feel free to contact me directly. Best wishes to you.

Linda Dressler
Prairie Path Realty - Schaumburg.
... more
0 votes 9 answers Share Flag
Fri Aug 9, 2013
BJ Tregoning answered:
Those situations are few and far between. Way better to get a loan and be done with it. Talk to a mortgage broker to find out how much you qualify for then find an agent who specializes in the area in which you are wanting to live. ... more
0 votes 17 answers Share Flag
Wed May 23, 2012
Michael Cheng answered:
Whether you can afford to buy a home will depend on both a financial assessment with a mortgage broker or lender and the price of a home you'd like to buy. So, we can't really answer those questions here.

As for the differences between owning or renting a home, there are too many to enumerate here. What I can offer are the top 3 differences:

With ownership,
you get to make any personalizations you can afford that's within your county's building codes;
you pay all property taxes and assessments; and
you pay all maintenance costs.

With renting,
you'd have to ask your landlord for any physical changes to the unit, but
you pay no maintenance, taxes or assessments and
you pay no Realtor commission if you decide to move.

Hope that helps.
... more
0 votes 4 answers Share Flag
Tue Jul 17, 2012
John Walin answered:
Vacant is not a defined MLS parameter, rent with option to buy is. If a home is vacant usually it is under foreclosure/short sale and bank wont go along with a more complex transaction. Plenty of rentals out there, not many incentives for a seller to lock in a price today because you have a credit problem with getting a mortgage now. ... more
0 votes 10 answers Share Flag
Tue Oct 26, 2010
Zmbrennan answered:
Nicky,
You ask a really important question. Be certain in the contract it is written who is responsible for the taxes.
A contract for deed can have either party be responsible.
Be very clear on who is responsible on all issues and that both parties understand and agree.
It may be a good investment to have a real estate attorney go over this with you to be certain you have addressed all issue and that you understand your own contractual agreement.
Great Question.
... more
0 votes 1 answer Share Flag
Wed Oct 27, 2010
Laura Karambelas answered:
Hi Nicky-

Whatever terms are negotiated between buyer and seller should be written into the contract...length of contract, who is responsible for taxes, who is paying assessments (if any), etc..

I would recommend having a real estate attorney look over your contract so you know exactly what you are getting into.

Good luck!
... more
0 votes 3 answers Share Flag
Fri Aug 9, 2013
Monir Mamoun answered:
Great question Willprow... I wrote a multi part blog about this topic. This will help you go through the decision making process. I have included the link below.

Also I have another blog on top 10 Credit myths. You might find that useful as well. ... more
0 votes 11 answers Share Flag
Wed Nov 16, 2016
Matt Laricy answered:
I dont think you can do rent to own with a section 8 voucher.

Matt Laricy
Americorp Real Estate
Brokers Associate, e-PRO
mlaricy@americorpre.com
708-250-2696
0 votes 7 answers Share Flag
Wed Nov 2, 2011
glenn answered:
I remember showing this building a couple of times before the last sale; it was very rough and it would be interesting to see what kind of improvement has taken place. If you'd be interested in an opinion of value for resale I'd be happy to round up some recent investment sales to give you an idea of what buyers are expecting to pay for income-producing properties in Quincy at this time.

Please contact me for an appointment.

Glenn Swick Cel: 653-9910 email: glenn@glennswick.com
Century21 Broughton Team
3325 Maine St
Quincy, Il 62301

licensed in IL & MO
... more
0 votes 2 answers Share Flag
Thu May 7, 2009
Tracy asked:
a short sale on my current home in So. FL. Am I going to have to do a rent to own as oppose to buying? I have perfect credit now, but know the short sell will hurt that.
0 votes 0 Answers Share Flag
Wed Sep 30, 2009
Maria Clark answered:
March numbers just came in for Illinois. I would seriously consider renting.
If I can be of any help let me know. I specialize in residential rentals for the
past 13 years in Chicago.

Best,
Maria Clark
Newman Realty
... more
0 votes 13 answers Share Flag
Tue Aug 3, 2010
Kathy Diegel answered:
What area are you looking to rent in for $2000 a month?
0 votes 6 answers Share Flag
Sat Mar 7, 2009
Patty Fisch answered:
You may find sellers who are willing to do a lease purchase or option to purchase with you. If you have credit issues with not paying for you current living space - then it will be more difficult for you to find someone willing to take the risk. It will be important to ensure you don't overextend yourself and can afford the payments to make this successful. There are a number of folks who get into this situation and can't afford the rent payments or can't qualify for the home and they end up without the house anyway. There are many risks - so make sure you understand what you're getting into before signing any contracts.

It's always a good idea to clean up your credit, because if you eventually want to purchase the home and obtain a FHA, VA or Conventional loan - this is criticial! There are some sellers who will do seller financing, but they'll typically want a good down payment to assume the risk.

There's lots of info out on the internet to help you .. the first step would be to get your credit report. I'd recommend that you work with a good mortgage broker who you trust. They can pull your credit for you and many will even work with you to make a plan on how to improve your credit and give you a realistic figure for what you might qualify for and how long it will take. Here's a few links on how to clean up credit:

https://www.quickenloans.com/home-buying/learn/credit/how-to-improve-your-credit-score
http://realestate.yahoo.com/info/guides/improve-your-credit-score
http://homebuying.about.com/cs/yourcreditrating/a/improve_score.htm
http://articles.moneycentral.msn.com/Banking/YourCreditRating/BeefUpYourCreditScoreIn5steps.aspx

Best of luck to you!
... more
0 votes 2 answers Share Flag
Thu Feb 5, 2009
Mark Waldhoff answered:
The first thing I would do is talk to a local lender to see what programs they know of. The low credit scores will definitely be an obstacle but the local lenders would be the best resource for the loan programs ... more
0 votes 5 answers Share Flag
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