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We will soon start our home search (buying in the summer)and I'm in need of serious advice. We never bought a house and our previous home was a new Condo. We had no problems at all in 9 years. We will definitely hire an inspector if we decide on a house, but what are the things WE should be specifically paying attention to the first time we see each house? What are the things in a house that would make you run (not even worth fixing, to costly)? Are there tell tale signs that the owner did a shady renovation? I'm just wondering, because when we came to see the house we are renting now, everything looked beautiful and new and in a month everything turned into a nightmare. They only painted the visible parts, inside the closets (that I would usually never open) the paint was pealing off the walls and doors. None of the doors close completely. Sliding closet doors do not slide. I never noticed the outlets were all two prongs, etc and lots of other stuff we never noticed, because they were either closed off or hidden behind furniture and curtains (old peeling drafty windows. Should I rent to own? I would never buy the house I'm renting now, but when I first saw it I thought it was beautiful. It's a scary thought to buy a house you will hate in a month. How expensive is it to put in new windows, new furnace, new electrical, plumbing, etc.
A good realtor should be able to help you pick the right house, and teach you what to look for. Get recommendations for a good realtor from family/friends, don't just pick a name out of the phone book! Renting to own sounds like a scam to me.
I'm planning on making a list of all the bad stuff that I only noticed after I moved in, so next time I will go through the whole list while I visit the houses.
from what ve seen of rent to own or owner finance typie deal, there a good idea if you cannot get financing any other way, but you will end up paying mroe in the long run, when you rent to own only a small portion of your rent goes towards the down payment...and when you owner finance it tends to be a higher interest over a shorter period, so while it generally evens out youll be paying mroe each month...
i think rent to own is a good idea if say youve rented a property for a few years and fallen in love but the land lords decidided to sell...then a rent to own set up might definatly be worth it...
rent to own and a lease option are two completely different things.
From what I understand "rent to own" has a list of qualifications as well as complications.
Lease option simply means you move into a house as a renter for 6 months, 9 month, a year, whatever and at the end of the lease, you have the option to purchase the house.
Most homes that are for rent are also for sale. There are a lot of sellers who cannot sell the house so they are renting it out just to bring in some money. Usually they've moved out of state for some reason and the house is sitting empty so renting it is better than it sitting.
The problem you'll run into with a lease option is that the seller will want you pay some type of large, non-refundable down payment stating that you purchase the house at the end of the lease or you lose the down payment OR you can move in as a renter but they will continue to keep the house on the market. If a buyer comes along when you are in the middle of your lease, the seller has the right to give you 60 days to pack your stuff and move.
I know all of this because I went through it when we moved here looking for a house to rent. It was very difficult to find a house where the owner was just looking to rent it out and didn't care about selling it. We were lucky to find this house.
I say, if you find a house that seems like it's your dream house, and the seller happens to be offering it for rent, you don't have much to lose by renting it for a few months to be sure you love it. Should you love it, then you can buy it. If you don't love it, yes you will have lost the down payment and deposits, but you won't be trapped in a house that you hate.
edit-
here is a link to what rent to own is. I know where we used to live, there was an older, tiny subdivision that was pretty much for people with low income and they always advertised rent to own. http://www.renttoowntherightway.info/proscons.html
It sounds to me like you are looking for a lease option. As for the legalities, that is why you have an attorney. Yes a realtor can be helpful, but they are not attorneys. I wouldn't think of purchasing a house outright, let alone a lease option without an attorney representing me.
First, start looking for a good agent that works in the area where you'll be looking. Ask work colleagues or friends for recommendations and interview a few.
Rent to own and lease options still are not all that common. Some owners will consider it, but most will not because they'll be looking to cash out of their house more quickly so they can purchase another home, relocate, don't want to be landlords, etc. If you want to go down that path you'll also want to hire an attorney to help you with the contract and legalities of the process. An agent will be able to still help you find the house, but rent to own contracts are not something we deal with often (or at all) so both the buyer and seller will be leaning heavily on their attorneys for representation.
If you go to realtor.com and type in the name of a city, if you look down the left side under "Property Status" you'll see an option that says "rentals". Click on that and it will tell you the homes for rent in that city. You'll see that most of the time, any house for rent is also for sale.
And one other bit of advice, don't let anyone pressure you into purchasing a house if you don't feel 100% ready. Long gone are the days of buying a house and selling it a year or two later and still making a small profit. Make sure it is the house for you and your family.
Since you have already owned a home, I would recommend buying rather than going with a rent-to-own property. not knowing the details of your situation though, I would consider renting if there were circumstances that have not been mentioned like being new to the area, credit issues, etc.
That said, it sound to me like you already know a lot of the things to look for when buying a home. Most of these are things a good home inspector will find for you but it is still good for you to be aware of them too when you are looking at homes. A friend of mine takes a small rubber ball with him when looking at houses to make sure the house has not settled unevenly. He opens every door and looks closely at every window, something I did not do when I bought my house. Keep in mind that no house is perfect and there will be things wrong with any house you buy. But if you really like the house you are buying you will not mind putting up with a few imperfections. That is not so true when you are renting. Jay
I say rent to own just because it sounds like your sketchy about jumping into any house. So at least you can live there and see if you like it. Get to know the neighbors, area, feel of the home, ect.
But how many rentals can you find that are rent to own?
So I changed my mind and say just buy and dont waste $15,000 on rent you'll never get back.
One thing you will get that I bet you did not get renting your home is something called discousure papers. The owners have to be honest on these and the questions deal with if water has ever come into the home, fireplace issues, infestations, well/septic problems..etc that they are required to fill out when selling. I have been burned to many times that now being a renter going through realtors I ask for these papers so I know what I am getting into, I ask because renting they are not required to give these papers, only when selling. While you will learn a lot from an inspection these are a good history to see if there are any issues before you pursue any further and paying for an inspection.
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