my hb and i are currently "cleaning up" our credit reports and expect them to go up (from poor) int the next few months, but we have found a house we would like to buy now. we know that we can afford it, but cannot get a mortgage right now. can we make a rent to buy offer to the seller? how would that work?
2007-07-10 02:54:28 · 6 answers · asked by hokeymama2 1 in Business & Finance ➔ Renting & Real Estate
It's a buyers market, so sure it can't hurt to make an offer. The higher the interest rate you can pay the more interesting the offer will be to the seller.
2007-07-10 03:04:46 · answer #1 · answered by Anonymous · 1⤊ 0⤋
You can certainly make the offer - but realize that the seller may not agree. In most rent to buy offers, a small, agreed upon percentage is applied to the down payment on the home. Most rental to own offers specify a time at which the buyer must secure other financing or forfeit the "downpayment" funds.
Most sellers need the proceeds from the sale to finance their new home. Do you have a relative who would purchase the home for you and rent it to you until your credit is better? That might be a better option. Good luck!
2007-07-10 03:01:13 · answer #2 · answered by browneyedgirl623 5 · 0⤊ 0⤋
Bring it up with the seller. Make sure ANY agreement you have with them is in writing and agreed to by all parties. You don't want to pay more than market rent for the property, only to have them find a buyer between now and July and then pull it out from under you.
2016-05-22 07:30:57 · answer #3 · answered by odell 3 · 0⤊ 0⤋
Unless a seller is offering the home as "rent to own" it's not worth putting in such an offer. Most sellers are looking for their money in the short term and would not be interested in a long-term relationship.
Rent to own is a viable option for the credit challenged, but you MUST use an attorney to draw up the deal for your own protection and you must also go through all of the normal due diligence required of a home purchase such as title searches, inspections, etc.
2007-07-10 03:08:43 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Sure, depending on the housing market in your area. If homes are selling and that home is priced right then the seller may want to just sell it and be done. But in a slower market your offer may be worthwhile to the seller, it just depends on their motivation.
For example, if they need the cash from the sale of this home for their next one then they will not be as motivated. Also, if they are listed with a Realtor, you will likely get resistance from that person. (Sadly, many Real Estate Agents do not understand nor care to undertsand how a L/O functions. There is also the slight problem of how the RE Agent will collect their commission...)
Anyway, there are many ways to look at this but first determine if the seller is motivated to complete a L/O.
You will need contracts, etc. to complete the transaction and everything is negotiable, depending on how much you want the home. (The problem will be if you have fallen "in love" with the home...)
Best wishes!
Me2Me2Me3@yahoo.com
2007-07-10 03:07:14 · answer #5 · answered by Anonymous · 2⤊ 1⤋
Since this is my primary business I can answer with a definite, YES!
Call the owner and tell him, "I'd be willing to pay you FULL PRICE for your house if you'd be willing to lease it to me for a while until I can refinance it into my own name and cash you out. Is that something you'd consider with this property?"
He'll probably ask you "How long of a term are you talking about?"
Tell him you'd want at least a 3 year lease but that you'll refinance it as soon as possible into you own name. BTW, it typically takes me 15-18 months to get my tenant/buyers refinanced.
All he can say is "NO." It all depends on his motivation level and you won't know until you talk to him. If you'd like more info or help with this feel free to e-mail me.
2007-07-10 19:26:55 · answer #6 · answered by Anonymous · 0⤊ 0⤋