U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > North Carolina > Charlotte
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 02-08-2012, 08:36 AM
 
Location: Lake Wylie, SC
72 posts, read 151,242 times
Reputation: 32

Advertisements

Wondering if any of you have experience with doing a lease to own on your house for sale? DH and I are going to be putting our house on the market but there are already several houses in our neighborhood for sale, including two of similar floorplan for sale in our neighborhood, one is a foreclosure and the price is Obviously we would prefer to do a straight up sale, but we're trying to be proactive in thinking of "creative" options if we have a hard time selling. Just looking to hear about other's experience as we consider our options.

(for what its worth we don't HAVE to sell right now but we do really want to move to a different part of the CLT area and we would like to take advantage of low interest rates and low prices now if we can)
Reply With Quote Quick reply to this message

 
Old 02-08-2012, 09:57 AM
 
335 posts, read 589,763 times
Reputation: 297
Lease to own is safer for the seller, not so much for the buyer/renter. 1) It gives the buyer/renter more incentive to keep your house in good shape. 2) Assumng your contract requires a premium to be paid, you have a nice little insurance policy in the event that the deal falls through. I would never do a lease to own as a buyer/renter, because unscrupulous sellers/landlords will always be looking for a way to nullify the agreement and keep the premium.
Reply With Quote Quick reply to this message
 
Old 02-08-2012, 10:32 AM
 
Location: Phoenix, AZ > Raleigh, NC
15,034 posts, read 18,909,724 times
Reputation: 24060
Are you sure you can qualify for two mortgages? They will probably consider both mortgages as your debt and will not accept the lease purchase payments as income until you have a history as a 'landlord ' - usually 6-12 months of payments. Then, the lender will only use a portion of the rent as income - usually 75%.
Reply With Quote Quick reply to this message
 
Old 02-08-2012, 12:08 PM
 
Location: Union County, NC
1,891 posts, read 5,548,579 times
Reputation: 749
Definitely check with a lender -- maybe several -- first. I think the history of it being a rental property may need to be even longer than 6-12 months right now, so if you are looking to purchase make sure you can qualify for both.
Reply With Quote Quick reply to this message
 
Old 02-08-2012, 12:59 PM
LLN
 
Location: Upstairs closet
4,977 posts, read 8,722,887 times
Reputation: 6443
I bought our current house by proposing directly to the sellers the following. I tried this twice via realtors and they lacked the imagination/intelligence to get it done.

I committed, in writing to:
1) pay an amount of rent
2) pay homeowners insurance (pay their bill)
3) Committed to buy the home by a certain date
4) Asked for first option to continue lease if I was unable to purchase by the date (we had to sell our house first)
5) And I proposed a sales price (lease payments NOT going toward sales price)

My offer/deal was accepted, but we sold and closed on our house within a month, so the arrangement was largely moot.

Good Luck.
lln
Reply With Quote Quick reply to this message
 
Old 02-09-2012, 08:12 AM
 
Location: Union County, NC
1,891 posts, read 5,548,579 times
Reputation: 749
I don't think people are arguing that lease-purchases can't work -- they can, and from a buyer's perspective (and for that particular seller) it certainly worked for LLN. From a seller's perspective, though, if they want to purchase another home while the original home is under a lease-purchase contract they may need to be able to show that they can carry both loans.
Reply With Quote Quick reply to this message
 
Old 02-09-2012, 08:29 AM
 
335 posts, read 589,763 times
Reputation: 297
Quote:
Originally Posted by LLN View Post
I bought our current house by proposing directly to the sellers the following. I tried this twice via realtors and they lacked the imagination/intelligence to get it done.

I committed, in writing to:
1) pay an amount of rent
2) pay homeowners insurance (pay their bill)
3) Committed to buy the home by a certain date
4) Asked for first option to continue lease if I was unable to purchase by the date (we had to sell our house first)
5) And I proposed a sales price (lease payments NOT going toward sales price)

My offer/deal was accepted, but we sold and closed on our house within a month, so the arrangement was largely moot.

Good Luck.
lln
That's an excellent approach. I think the Realtors imagination/intelligence probably fluctuates up or down along with the commission. This type of deal would be difficult for them to collect on.
Reply With Quote Quick reply to this message
 
Old 02-12-2012, 11:02 AM
 
1,453 posts, read 4,689,109 times
Reputation: 734
Quote:
Originally Posted by LLN View Post
I bought our current house by proposing directly to the sellers the following. I tried this twice via realtors and they lacked the imagination/intelligence to get it done.

I committed, in writing to:
1) pay an amount of rent
2) pay homeowners insurance (pay their bill)
3) Committed to buy the home by a certain date
4) Asked for first option to continue lease if I was unable to purchase by the date (we had to sell our house first)
5) And I proposed a sales price (lease payments NOT going toward sales price)

My offer/deal was accepted, but we sold and closed on our house within a month, so the arrangement was largely moot.

Good Luck.
lln
I'd say the Realtors had enough imagination/intelligence to realize that they'd likely be working for you for free and choose to pass up the opportunity. You would probably do the same.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > North Carolina > Charlotte
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 06:13 PM.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top