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Our house has been on the market for quite some time and and after many showings (and some second showings) we currently have a very interested buyer who desperately wants to purchase our home. Problem is, they have a house to sell and are JUST NOW putting it on the market. They have a feeling their home will be a "hard sell" too because it's on a major road.
They are inquiring as to whether we would be open to a "rent to own" arrangement.
I know what a rent-to-own arrangement is (in a general sense), but I am wondering if it would be in our best interest (esp. considering the current housing market) and whether we would be wise or foolish to consider such a thing on our end.
Can anyone who has had any experience with this type of arrangement (or expert knowledge) give me some input or insight? What things should we be considering?
We have had an increase in showings lately (probably due to the new government incentives for second time homebuyers) and even a couple second showings recently, if that makes any difference.
Thanks in advance for your thoughts.
P.S. We are listed with a flat fee MLS service so we are on the MLS but are doing the leg work ourselves.
[quote=Sassygirl18;11694988]Our house has been on the market for quite some time and and after many showings (and some second showings) we currently have a very interested buyer who desperately wants to purchase our home. Problem is, they have a house to sell and are JUST NOW putting it on the market. They have a feeling their home will be a "hard sell" too because it's on a major road.
They are inquiring as to whether we would be open to a "rent to own" arrangement.
I know what a rent-to-own arrangement is (in a general sense), but I am wondering if it would be in our best interest (esp. considering the current housing market) and whether we would be wise or foolish to consider such a thing on our end.
If you read through others experiences with rent-to-own you will probably determine it is not in your best interest. Search on here and see for yourself.
Our house has been on the market for quite some time and and after many showings (and some second showings) we currently have a very interested buyer who desperately wants to purchase our home. Problem is, they have a house to sell and are JUST NOW putting it on the market. They have a feeling their home will be a "hard sell" too because it's on a major road.
They are inquiring as to whether we would be open to a "rent to own" arrangement.
I know what a rent-to-own arrangement is (in a general sense), but I am wondering if it would be in our best interest (esp. considering the current housing market) and whether we would be wise or foolish to consider such a thing on our end.
Can anyone who has had any experience with this type of arrangement (or expert knowledge) give me some input or insight? What things should we be considering?
We have had an increase in showings lately (probably due to the new government incentives for second time homebuyers) and even a couple second showings recently, if that makes any difference.
Thanks in advance for your thoughts.
P.S. We are listed with a flat fee MLS service so we are on the MLS but are doing the leg work ourselves.
I tried to respond & it f*%d up...let's try again
We just evicted tenants from a lease purchase option. They paid the first month plus downpayment on the purchase & not one more dime. Sept 2009 paid, October -0-, November -0-.
Tried to claim they had to pay $1,000 to fix the pool; you can not withold rent for a repair plus they never put the other $500 in escrow for rent as the first eviction notice read, once they did not pay by end of oct. The receipt was obviously faked.
The eviction notice went out 10/14, hearing 11/12 & they got their 3 day notice to leave on 11/16.
If you plan to lease purchase all I can say are two things:
BACKGROUND CHECK by using your county court site(criminal online searches, land searches, etc.) as well as Pipl - People Search. Both are free & you'll find a load of interesting things.
NO SUBLETTING: our tenants did this before they even moved in...go figure! No subletting should be in black on the white lease paper.
Everyone's situation is different but on most cases, don't (rent to own)! Odds are against you for a positive turnout. Another negative, remove your home from the mls. The MLS is BAD for ALL sellers.
You probably don't want to persue the rent to own, because the potential buyer is going to be paying their home mortgage plus rent to you. After a couple of months, this is going to get very expensive for them and they'll probably stop doing this considering that their house will be hard to sell. So, after they move out, you'll have to go back and fix up and clean up the house which will cost you money and time. And.... you've lost potential buyers because your home was off the market.
We did an owner finance on a property and we paid on time as agreed. We sold the home after 2 yrs we made a profit and the people we were buying from were paid off. Ended well. Then in the home we are in now we have been here since 2006. We moved in as a lease purchase. We paid on time as agreed for 6 months and then did a refinance and paid off the people we were lease purchasing from and were officially on title as of 2007. So it worked out as well. I know we are the exception but it can be a good thing just really check out the buyer.
Doing the owner finance and lease purchase helped us get on our feet and worked out for the seller and us the buyer.
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