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So here is our situation. We are currently living in Boise, Idaho bought our house less than 2 years ago and have no equity. In two weeks we are moving to Montana for job opportunities and to be closer to family. We are going to rent for a while until we get settled. We paid 239900, owe 238000 and we started our asking price at 249900 and have lowered it this week to 242900. Its been on the market for 26 days and we had one really crappy offer the first week that we listed it, but it would have put us in the hole by 20K, which we don't have. The most we can bring to the table is 10K. We are now wondering if we should keep it and try again next year, which I really don't want to do, or try a lease to purchase option, which I don't want to do either but its an option I guess. Has anyone had any experience good or bad with lease to purchases? I really would rather just get rid of it and start over. We are using a discount broker who basically just slapped a sign in our yard, took some pictures and put it on the MLS for $1000 so he isn't out there so to speak. They buyer's realtors fees are what's gonna kill us. In fact we could have accepted the first woman's offer, but couldn't afford the 8K in fees from her agent. Any suggestions would be greatly appreciated. Thanks, we are so discouraged by this whole thing!
Wow, if you proceed it's going to hurt for sure, especially with current conditions. The question I'd be asking myself, is MT really that important right now? Is it really worth paying serious money to move to?
Since I live in the state you want to move to I can tell you there's nothing to rush here for unless you just REALLY want to be here which I can understand....
Houses aren't appreciating real quick, more companies are building here weekly and the unemployment rate is runing about 3% so there is plenty of work for a while.
Well,
We are both originally from Great Falls and are moving to Helena. I have got a job opportunity that I can't pass up, as you may know, they don't come up that often MT. I hate living in Idaho more than I can describe, I know that we should've never moved here in the first place. All of our family lives in MT and I want to move before it turns into the rat race that Boise is.I know we are going to take a loss no matter what, but I just wonder what our options are.
Now may be a good time for a lease to purchase. It may provide
more buyers.
Make sure you check out the buyer and get a monetary commitment
in terms of money down and or extra payment amounts.
Spend the time up front.
Also, can you provide any seller financing?
We could probably do financing to the seller. So what kind of questions do we need to ask when doing a lease to purchase to the buyer and realtor. The only reason I am so nervous about doing this is because we will be living 10 hours away. Our house is really nice and I don't want it trashed. Well, thanks for the input its something we will definitely look into.
So what happens if we do a lease to purchase for 2 years, but we want to buy another house in a year. Can you do that?
Your current mortgage most likely has a "due on sale" clause so you would have to pay it off when you sell. You don't have enough equity to do any owner financing. With a lease purchase, you need to make sure the people put up a significant amount of earnest money that is NON-REFUNDABLE but gets credited towards their purchase when they do purchase. For example, you establish a contract sales price of $240,000 and your buyer pays $10,000 up front and then you agree on a set rent for the next year (or whatever rental term you establish). I'm not sure what rents are in your area, but based on the purchase price, I would estimate a rent payment of $1200-$1800/month. At the end of the term, they would need to obtain permanent financing. At closing, they get a credit for the $10,000 deposit made. This situation typically will work with buyers who are new at their jobs and can't get immediate financing or have some other time frame that prevents them from getting a mortgage now, but they have good prospects for getting one at a later date. I wouldn't recommend doing this with people who don't have any money to put down up front. That's your leverage for allowing them to rent until they can qualify to purchase. The upfront earnest money will allow you to continue to make payments on your mortgage if the rent you get isn't going to cover your current mortgage payment.
Wendy K
That's exactly what I was looking for, thank you! Now hopefully we can find that person who is trustworthy and willing to rent to own. We have already accepted the fact that we are losing money on our house, but no one here even seems to be buying right now either. Wow this is stressful!
I've never had a lease option actually close, I'm sorry to say. Neither has anyone in my office. The people have slapped down the non-refundable deposit, lived there the length of the lease and either walked away or are still living in the home on a month to month. But. I will say this. None of them have trashed the homes as they might if they have no stake in it. So, just be prepared to have the house back at the end of the lease term.
So here is our situation. We are currently living in Boise, Idaho bought our house less than 2 years ago and have no equity. In two weeks we are moving to Montana for job opportunities and to be closer to family. We are going to rent for a while until we get settled. We paid 239900, owe 238000 and we started our asking price at 249900 and have lowered it this week to 242900. Its been on the market for 26 days and we had one really crappy offer the first week that we listed it, but it would have put us in the hole by 20K, which we don't have. The most we can bring to the table is 10K. We are now wondering if we should keep it and try again next year, which I really don't want to do, or try a lease to purchase option, which I don't want to do either but its an option I guess. Has anyone had any experience good or bad with lease to purchases? I really would rather just get rid of it and start over. We are using a discount broker who basically just slapped a sign in our yard, took some pictures and put it on the MLS for $1000 so he isn't out there so to speak. They buyer's realtors fees are what's gonna kill us. In fact we could have accepted the first woman's offer, but couldn't afford the 8K in fees from her agent. Any suggestions would be greatly appreciated. Thanks, we are so discouraged by this whole thing!
It's a horrible time to sell. I'm a former Realtor, and have been trying to sell a home in Middleton for over a year now. Despite huge price reductions, it still is sitting. The market is oversaturated with homes--therefore, prices are dropping. Good luck. I wish I had a magic answer for you.
It's a horrible time to sell. I'm a former Realtor, and have been trying to sell a home in Middleton for over a year now. Despite huge price reductions, it still is sitting. The market is oversaturated with homes--therefore, prices are dropping. Good luck. I wish I had a magic answer for you.
What specifically is going on in your market?
You said that there is a glut of properties. Why are they not selling?
I would appreciate an objective analysis of your area.
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Lease to purchase
who is trustworthy and willing to rent to own. We have already accepted the fact that we are losing money on our house, but no one here even seems to be buying right now either. Wow this is stressful!
