Negotiating a home tomorrow that needs a ton of work (Central Falls: sale, real estate)

[kaj0209]

Hello everyone,
I could really use some help here. We are doing a 24 month lease to own option on a house. We are going to pay a monthly rent for that term with the option to buy or extend at the end.

We are first time buyers, and are trying to make a smart move. The sellers want $165k for the house, it is 3 bedrooms, 1 bath, has a front porch and deck with an above ground pool, a fenced in yard, and is in a nice residential area.

However, the house needs a ton of work. It has been unoccupied for two years that they have been trying to sell it. The entire house needs to be insulated, it needs an entire electrical upgrade, you can see sunlight around the chimney, so that part of the roof needs to be flashes (other than that the roof is in great shape), the pool needs to be redone and rewired, and a bathroom window is broken. There are a few other things as well.

We are planning to offer them in the high $120's or low $130's, under the condition that we will take care of all the work that needs to be done with the house, they do not even have to do anything after the inspection is done before we move in. My boyfriend knows how to do everything and is a licensed electrician, so I think we will be able to accomodate the house over time. Do people think this is a fair offer or have any suggestions? They are offering us a great rent to own option, and the house is in a great area, just needs some love.

Please any advice would be greatly appreciated.

Thanks for reading!

[Hollytree]

So many issues here- where to begin?

The first major concern is the issue of working extensively on a house that you do not own and may not be able to buy. Why can't you reasonably expect the landlord to make needed repairs before you rent- is he in financial trouble? What is your problem-- no credit or no down payment? Most lease options require a down payment.

If you got the house outright for 125 or 130k you might be able to own without a lease option. Have you been in to talk to the people at RI Housing and Finance? You might be surprised at your options as first time buyers. Have you looked at SWAP houses? If you're do it yourselfers this might be an affordable option.

Can not advise at all on price without even knowing what community the house is in. (125k in Central Falls is too expensive). Location is everything in real estate.

[LABRAT16]

Location is everything and how much of the work can you do yourself? How the plumbing and the HVAC system? Can you be assured that once you do the work he won't find a to fudge on the sale and all your efforts are to profit him. It can be a scary and costly situation. It's a great time for first-time home buyers now so you may want to check all options. You would really be better off taking complete pocession of the property.

[Margart]

Hi, my son and daughter in law had a pretty bad experience in the rent to own deal. I would highly advise against it. They did all the repairs and rented it for a year, paid the rent on time and were
perfect renters. After the 12 months you have to qualify for a loan at a mortgage company and if you qualify for that loan the owner has the right to refuse you. So please be cautious. That´s what happened to my son,,he qualified but the owner was looking for an easy way out to get the house repaired and then he let them ride and rented it out for much higher rent. My son and daughter in law had to move out within 3 days...and all that work they did and expense..that´s the way it is. If you don´t qualify for a mortgage loan, just rent and try to get your credit in order if it´s the situation you are in. There´s a lot of scams going on and I´ve heard a lot of people have done a lot of work on houses and then the landlords just kick them out after the 12 months so beware...Margart