Are you are looking into the idea of Rent to Buy homes (also known as lease to own)? How would you like to have a road map to help you find your way? These 5 tips will get you started but, you will need many more questions answered. You can find more tips on the authors site. Do a rent to own at your own risk without consulting the list below!
- Location, location, location. The old axiom applies to Rent to Own as it would with any other purchase of real estate. Ask yourself, would I want to raise my children here? If the answer is yes, on to step 2.
- If you can get a loan/mortgage and purchase the home outright, you may be better off doing so.If you think you may need to move within 2 or 3 years, Rent to own might be a better option even if you can get a mortgage now.
- A Lease to Own/Rent to own is similar to “living together before you get married”. You might find out the other is a perfect fit. Or, you might find out the house has some really nasty habits! Either way, you haven’t made a life altering commitment. And, if you want to, you can take the plunge get a mortgage and make the commitment to own.
- Make sure all the terms of the agreement to Lease to Own/Rent to buy are spelled out in writing. This one seems obvious but many people just don’t do this. It’s difficult to be dispassionate about something you really want. Be sure and have someone other than yourself, preferably a real estate attorney, look it over and explains the terms to you. You can call any title company and they will have an attorney on staff who can do this for a very small fee. Do this and you may save yourself finding out some huge, costly, surprise later.
- Want to take the risk out of option to purchase? The option to purchase is the agreement that says you can (but don’t have to) buy the home for a specific price for a specific length of time; 1 year 2 year, etc. In a market where home prices are going up fast, less risk for you if you lock in a price in your option to purchase. In a market where prices are flat or falling (like now 2008) you have less risk if you don’t lock in the price. How do you do that? Ask the seller to put in where the purchase price goes in the Option this; “Price will be determined by a mutually agreed upon appraisal at time of executing Purchase Option”. This will mean you get a fair price when your ready to buy and so does the seller!
Other questions you will want to explore; is rent to own right for me? Why? Is now a good time to move? Want to learn more about Rent to Own/Lease to Own? Search the Internet or stop by the authors site and get the information you need to decide if it’s right for you.
Mark Brosius invites you to learn about rent-to-own home ownership and get on our list of available properties for the Metro Indianapolis Indiana area. [http://theindyhome.com]
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