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Buying or Selling a Home/rent to own
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Question
I have been looking to rent a home as my lease will be up soon. I found a place available but it is a rent to own home. I am really unfamiliar with this process. If something were to need fixed in the home, who is responsible for the repairs? Also, what are the pros and cons of this kind of arrangement for the tenant?
ROBERT--
There are no "hard & fast rules" for "Rent-to-Own" transactions--prices, terms, who fixes what, how much of rents paid will apply to the sale price, etc, are all NEGOTIABLE between Buyer & Seller. As for the "pros & cons" for the Tenant/Purchaser, they depend the outcome of the negotiations between the Landlord/Seller & the Tenant/Buyer! The "signed-around" Purchase & Sale Agreement/Contract will dictate how these issues are handled! So...it's partly up to you!
It's extremely important for a potential Tenant/Purchaser to have professional guidance & assistance in negotiating the BEST deal for him/her BEFORE signing any Lease/Purchase Agreement" with the Landlord/Seller. "Hire" a REALTOR who specializes in acting as a "Buyer's Broker" can help with the negotiations between you and the Landlord/Seller and his/her Real Estate Agent! Your "Buyer's Agent" can help you prepare an Offer that is in your best interests.
A "Buyers Agent" works for YOU, not the Seller, and MUST help you get the BEST deal possible!
Your Offer and any Counteroffers that go back & forth between you and the Landlord/Seller should contain a "contingency clause" that provides for your having an ATTORNEY of your choice REVIEW your final agreements BEFORE your full commitment to the "Lease-Purchase" of the property!
Rent-to-Own purchases CAN be very beneficial to Buyers who cannot otherwise purchase a home "right now," due to poor credit, etc, but
often the Landlord/Sellers want to put together a transaction that "leans heavily in their direction," and is not as good a deal for the Tenant/Buyer as it should be. Be careful, get REAL ESTATE AGENT & LAWYER assistance to help you ensure a transaction that works in your favor!
All that said, I suggest that if you are able to fully finance a Home Purchase now, that you offer this Seller a "straight-forward--out&-out, no rent-to-own" purchase of the property! He/she MIGHT just take you up on such an offer-- GOOD LUCK!
--JIM
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Jim Root
Expertise
How to select the right Real Estate Salesperson & Loan Officer--ones who will serve your best interests! House-hunting tips & suggestions on selection of the home best for your family needs. Introduction to the Home Buying Process & all the "Players" involved.What is of utmost important to the Homebuyer? Real Estate Contracts & Negotiations, Appraisal needs, Title Co. involvement, Home Inspection issues& the Closing/Escrow systems, etc. Whatever your question, the answer will follow, whether from personal knowledge or research! Gale, shown here with me, has been a Real Estate Office Administrator, licensed Realtor & has served as my Research Assistant over the years!
Experience
Over 30 years as a "Real Estate Professional." including Real Estate Marketing & Sales, Appraisal work, Mortgage Banking & as a Realty Officer with U.S Dept. of HUD's FHA Homeownership Division in Alaska, Washington & Idaho! Some experience in Montana, California, Utah & Nevada markets!Knowledge of National Markets by continuous Research!
Organizations
Former member of Nat'l Ass'n of Realtors (NAR) & Mortgage Bankers Ass'n of America (MBAA). Currently with National Association of Review Appraisers & Mortgage Underwriters (NARA/MU).
Publications
Published in various local, state, regional & national Real Estate-related magazines & newsletters!Co-author of various Govt. publications on Homeownership, Appraisals & Mortgages while with HUD/FHA.
Education/Credentials
Associate Degree in Real Estate Studies plus:
Numerous Real Estate-related Courses conducted by the U. S. Government & Private Industry over the past 30 years.
Bachelors Degree in Mass Communications,
Masters Degree in Education/Teaching
Awards and Honors
Professional Designations: Certified Residential Originator (CRO) from MBAA, Registered Mortgage Underwiter (RMU) & Certified Review Appraiser (CRA) from NARA/MU. Outstanding Peformance Awards for 10 of the 12 years with HUD/FHA & numerous Sales/Listing Awards while a licensed Real Estate Agent.
Past/Present Clients
No longer selling/listing Real Estate, nor Appraising properties, nor working in the Mortgage business, this "Real Estate Pro" serves as Director of a Company that provides Professional Development Seminars & Workshops to the "Real Estate Industry" and provides free (as needed) & fee-paid (on a sliding scale) consulting & inspection services to members of the general public.Your questions will be answered without "salesmanship" & with your best interests in mind!
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