This is more for the sellers.  Should you rent your property to someone that is going to buy it.

Scenario...I have a seller who received an offer.  The buyer wants to rent the house until they sell ther home out of state.  My sellers think this is great because they don't need to sell in order to move.

Problems we need to make sure are covered...

Price for the home is agreed upon.
The list price for the buyers home is in the market price range for the area.
The area the buyers home is has a market that is fairly active.
The buyers home is NOT in a short sale or late on payments.
Earnest money down.  (Possibly non-refundable if the sale does not close)
Proof that the buyer can perform.
How much time to give the buyers to sell.
Should there be a damage deposit in case the deal falls through.
Rental contract and rental amount.
Does any of the rent monies go towards the purchase. (I say NO)
What action does it take to get rid of the buyers if they can't perform.

There are even more issues depending on the property.

Renting may be an option, but if a sale is the main object, look very close at all the issue that could complicate the object.

It is chilly today so My grand Daughter is bundled up.

 
This post has been included in Minnesota Real Estate News Chisago County, MN Real Estate News North Branch, MN Real Estate News
Post is included in group: Almost Anything Goes
Post is included in group: Diary of a Realtor
Post is included in group: Minnesota Real Estate
Post is included in group: Realtors®
Post is included in group: "Whacked"!!!

6 Comments on Rent to own.

FEB
25
2012
236,472 Points 1 Featured Post Called Shot Master

The Rent to Own is a risky venture even for the buyers.  Some people only sell this way.  I saw a contract last year where after two years the price of the home went up 20%.  Need to look at all the fine print.
8:24am • #1
164,402 Points 8 Featured Posts Outside Blog Called Shot Master

Perhaps a month to month rental lease would also be in the mix?  I'd get a property manager involved to help on that side. It looks as if you've covered the significant issues that need to be addressed. 
9:37am • #2
1,405,835 Points 54 Featured Posts Outside Blog Called Shot Master

Randi...yes, I have also seen a few of these. They really boarder on a scam

Mark...I do some of the rental managing, but most of these, like this one is to be a very short term...with any luck.  Still, care must be taken.
9:37am • #3
262,168 Points Called Shot Master

I have a friend in the southern part of the state that fell for one othese rent to own scams. 
10:09am • #4
385,282 Points 8 Featured Posts Called Shot Master

Could you just use the standard move in amendment with the purchase agreement?
11:16am • #5
1,405,835 Points 54 Featured Posts Outside Blog Called Shot Master

Mike, that is part of what we are looking at.  The point is in general things need to be laid out very detailed when doing this.  If the Buyer ends up not being able to sell, we have an entire new ball game.

Again, I am not saying NO to this deal, I am saying proceed with caution.
11:23am • #6


What does the graphic say?
Leave a response…

(optional)
Spam Prevention:
 
Bill_4 Rainmaker_large

William Feela Realtor 651-674-5999 No. Branch,MN

Whispering Pines Realty

North Branch, MN

More about me…

WHISPERING PINES REALTY

Address: PO box 610, 29995 Julliard Street, North Branch, MN, 55056

Office Phone: (651) 674-7449

Cell Phone: (651) 674-5999

Email Me

Buying Real Estate should be fun...if you are looking in Chisago and Pine counties or anywhere in Minnesota, call me and let me show you that Buying a home is not all pain.


Listings

Links

Archives

RSS 2.0 Feed for this blog