Is A Rent-to-Own Property Right For You?

If you don’t have a lot of cash on hand to secure a home with a sizable downpayment, you might feel stuck. It’s quite a feat to be able to save up the 20 percent cost of a home that is generally required to purchase a home. Your options may seem limited when you want to own a home. There is one option that could be a good idea to consider when you’re in this situation. That’s the idea of finding a rent-to-own property. 

How Does A Rent-To-Own Property Work?

First, know that these properties are hard to find. That’s why you may not have thought of it as a first option. When you do find a property like this that suits your needs, you should know all of the ins and outs before you commit to the home. The agreement works just as it sounds, but there are always a few bits of extra text that can make the difference in any agreement in a rent-to-own property. 

Lease With A Purchase Option

With this type of agreement, you’ll need to pay what is called an option fee in order to give you the right to purchase the property at a later date. The seller is then required to sell the property to you as a tenant and apply the option fee to the price of purchase. If for some reason you have paid the option fee and decide to walk away from the property after a time, the money that you have paid as an option is simply lost. The option fee is usually a percentage of the purchase price ranging anywhere from 2-7 percent of the home’s price.  

Lease And Purchase Agreement Rolled Into One

In this type of rent-to-own agreement, both the tenant and the seller agree on fixed purchase price for the home, or agree that a purchase price will be determined at a later date through an appraisal. Everything is set up from the beginning including the closing date for the home.

This type of deal in a rent-to-own situation is often considered the better choice. Know that a fixed price option may put you in a better financial position than an appraisal option. You’ll have instant equity in the property when you buy it. This is especially helpful in high competition markets. In any other types of market, you may be better off with an appraisal. This ensures that you don’t overpay for the house.

How Your Rent Payments Apply

Rent-to-own gives you an advantage in that you get the added benefit of rent credits. This is where a percentage of your monthly rent payment is applied to the purchase price of the home. The amount of percentage that’s applied will be agreed upon with your landlord ahead of time.

While a rent-to-own option to purchase a property can be a bit more complicated than other ways of purchasing a home, it can be a great way for people different financial situations to become home owners. Make sure you go over everything carefully before you sign anything so that you fully understand the agreement you’re entering into.       

     

Open house on 8/25/2018 at 40 Duxbury Rd Worcester, MA 01605


Date: 08/25/2018 Time: 11:00 AM to 12:30 PM  
For Directions: feel free to contact me.  
For more information: click here for the full details  

Need a lot of space?? Plenty of room for the family in this 2000 sq ft plus Colonial with 4 bedrooms and 2 full baths!!~~ Big rooms~~ Dual staircases~~~Second Floor bedrooms with walk in closets~~~Fresh paint throughout ~~~New Flooring~~~New lighting~~~New entry doors and storm door~~Oak Cabinets int he HUGE eat in kitchen plus a pantry area with washer & dryer hook ups.~~ Updated roof 2011~~ Harvey Vinyl replacement windows 2007~~Easy Highway Access~~Close to Greenhill Park~~PRICED TO SELL~~ READY FOR IMMEDIATE OCCUPANCY!

Single-Family – 40 Duxbury Rd Worcester, MA 01605 is now new to the market!

Need a lot of space?? Plenty of room for the family in this 2000 sq ft plus Colonial with 4 bedrooms and 2 full baths!!~~ Big rooms~~ Dual staircases~~~Second Floor bedrooms with walk in closets~~~Fresh paint throughout ~~~New Flooring~~~New lighting~~~New entry doors and storm door~~Oak Cabinets int he HUGE eat in kitchen plus a pantry area with washer & dryer hook ups.~~ Updated roof 2011~~ Harvey Vinyl replacement windows 2007~~Easy Highway Access~~Close to Greenhill Park~~PRICED TO SELL~~ READY FOR IMMEDIATE OCCUPANCY!

This is a Colonial style home and features 8 total rooms, 2 full baths, 4 bedrooms, 0.10 Acres, and is currently available for $189,900.

For complete details click here.

How to Enjoy a Fast, Successful Homebuying Experience

Let’s face it – all homebuyers want to enjoy a fast, successful property buying experience. Yet transforming this vision into a reality can be difficult for first-time and experienced property buyers alike. Lucky for you, we’re here to help you streamline the homebuying journey.

Now, let’s take a look at three tips to help you enjoy a seamless homebuying experience.

1. Understand the Challenges Associated with Pursuing a Home

Planning ahead for the homebuying journey generally is a good idea. That way, you can identify potential homebuying hurdles and resolve these issues before they escalate.

Oftentimes, it helps to craft a homebuying strategy. This plan enables you to map out each stage of the homebuying journey, and by doing so, prepare for any challenges that may come your way.

You also may want to create a list of homebuying criteria. This list will make it simple to narrow your house search, and as a result, ensure you can discover your ideal residence without delay.

2. Get Your Finances in Order

You know you want to purchase a house, but you still have no idea about how you will pay for a residence. Fortunately, if you get pre-approved for a mortgage, you can enter the real estate market with your finances in order.

To get pre-approved for a mortgage, you should meet with banks and credit unions. These financial institutions can explain the differences between fixed- and adjustable-rate mortgages and help you determine which mortgage option best suits your individual needs.

Furthermore, you should review all of your mortgage options closely. Because if you understand your mortgage options, you can make an informed mortgage selection that will serve you well for years to come.

3. Hire an Expert Real Estate Agent

If you want to simplify the homebuying journey, you should hire an expert real estate agent. In fact, with an expert real estate agent at your side, you can get the help you need to quickly and effortlessly make your homeownership dream come true.

A real estate agent is a homebuying professional who is happy to share his or her expertise with you. Therefore, if you have any concerns or questions during the homebuying journey, a real estate agent can respond to them immediately. And if you are uncertain about how to proceed at any point during the homebuying journey, a real estate agent can offer data-driven recommendations as well.

Let’s not forget about the assistance that a real estate agent can provide when you decide to submit an offer to purchase a home too. At this time, a real estate agent will help you put together a competitive homebuying proposal. And if your offer is accepted, a real estate agent will help you finalize your house purchase. Or, if your proposal is rejected, a real estate agent will help you reenter the real estate market.

Take the guesswork out of acquiring your dream house – use the aforementioned tips, and you can boost the likelihood of enjoying a fast, successful property buying experience.