I live in an area where real estate value skyrocketed after Hurricane Katrina.The market is already going down and I expect it to be close to pre-katrina value in one year.
2006-07-06 05:22:13 · 10 answers · asked by rachellynn200 5 in Business & Finance ➔ Renting & Real Estate
BTW:I do not have a signed contract but I am very interested in a rent to own home.I just want to make sure I have all the facts before entering into one.
2006-07-06 05:27:06 · update #1
The price that you pay for the house is decided by you and the seller. You have to agree upon a price. The mortgage company that you go through will require an appraisal to make sure the house is worth what you're paying. The lender won't approve the loan for a house that is worth less than what they're going to pay for it.
2006-07-06 05:28:23 · answer #1 · answered by Gen 3 · 0⤊ 0⤋
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2016-07-20 08:21:06 · answer #2 · answered by ? 3 · 0⤊ 0⤋
It depends on your contract. Since property values are going down, the seller / landlord is going to want you to buy it at today's value. That way if it is worth $400k today and in 2007 its worth $325K, you are paying $75k over market value. This is obviously not to your benefit. Also, it will be difficult, if not impossible to get a loan for more than the property is worth- so you would have to come up with the difference in money you have saved. On the other hand, if you agree to buy it at the future value and prices go up, you can lose money. If you do improvements that increase the value, you will pay for those improvements all over again when you buy it at the market value. Be careful on rent to own properties. Why are you not interested in buying?
2006-07-06 10:13:09 · answer #3 · answered by B26 3 · 0⤊ 0⤋
It's whatever you agree it to be as stated in the contract. You can use a fixed amount or base it on a couple of appraisals at that time or even both.
By the way, I thought property values are on the rise there because of government tax incentives in the "Go Zones"? I just spoke to someone who bought 20 houses there last month inanticipation of the increase in property value.
Regards
2006-07-06 22:15:36 · answer #4 · answered by Anonymous · 0⤊ 0⤋
It is locked into what ever agreement you signed as part of the rent to own process. You can always re-finance the loan, but you have to pay the agreed upon price you both set forth in your agreement. If you are paying interest as part of the cost of the loan, you can re-finance provided the owner wants you too. Most rent to own the owner carries the note. Lot's of rent to own homes do not work out for one reason or the other.
2006-07-06 05:27:37 · answer #5 · answered by educated guess 5 · 0⤊ 0⤋
The price should be listed in any contract before you sign a rent to own. You might want it appraised first yourself. It's a gamble to wait to see if prices go down.
2006-07-06 05:28:23 · answer #6 · answered by SensuousSam 1 · 0⤊ 0⤋
Yes the price is locked in.Be careful of those contacts, b/c u can end up spending much more money than u would buying a home from the beginning
2006-07-06 05:29:19 · answer #7 · answered by Voice of reason 2 · 0⤊ 0⤋
Typically, the price is agreed upon when the contract is signed.
2006-07-06 06:32:08 · answer #8 · answered by Martin 2 · 0⤊ 0⤋
It would depend on the contract you signed when you initially entered the lease option. Read your contract.
2006-07-06 05:25:41 · answer #9 · answered by Badkitty 7 · 0⤊ 0⤋
Rent To Own Homes : http://RentToOwnHome.uzaev.com/?dOlc
2016-07-11 21:12:15 · answer #10 · answered by Meredith 3 · 0⤊ 0⤋