If you are a homeowner with properties for sale, renting to own may be one of your best options. The economy has changed drastically in recent years. Unemployment has reached record highs. Interest rates fell, but that wasn’t a factor as most homeowners flipped on their mortgages, a compliment to housing failures. Buyers generally have a harder time securing a traditional mortgage for a variety of reasons.
Average house prices in some areas fell by twenty-five to fifty percent. Home prices are falling not because of a lack of buyers, but because of a lack of qualified buyers.
Foreclosures and short sales have pushed home values down as well. Homes are valued by comparing the average selling price of homes in a given area that are similar in size, condition, etc. So many homes are foreclosed on, and individuals are being forced to sell their properties that it is impossible for many to find a buyer. The bank has a surplus of foreclosed homes in every community in the country, and the asking price is much lower. Ordinary homeowners can’t compete. This leaves the homeowner with a property he cannot sell, and if he does, he gets a fraction of its true value. This is when the lease to have becomes an option.
Most rent to own companies are looking for two types of buyers. Moving buyers tend to be good candidates for rental contracts. Relocating buyers want to quickly move in and start a new job while their old home is being sold. Most have no credit problems, but any debt for income disqualifies them for a mortgage. The second type of buyer is a high-income client with some credit problems in the past.
The advantages for homeowners who are willing to rent out to own are many. You get the asking price and a nice down payment you keep, if the buyer exercises his option to buy, or not. Another plus, most leasing to the company itself will help the buyer improve their credit score. If a serious buyer wants to be financed, their credit score is usually fixed at the end of the lease term. The lease period usually lasts no more than two years. No commissions or closing fees for sellers is another great incentive. Closing costs run into the thousands. The commission for realtors is about five percent of the selling price of the house. These two factors alone save homeowners typically $10,000 or more.
National online leasing to own company is ideal for sellers and buyers considering lease contracts as an option. Seventy to eighty percent of all homebuyers view homes online before they even visit the home, consumer research institutes report.
In conclusion, renting to own is a great option for homeowners who are selling their property, and buyers who want to close quickly. All programs are not for everyone, so find the one that best meets your particular needs. It should be easy with the sheer number of companies providing services in this niche. Hope you find this useful. Good luck!