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Rent-to-Own - A Good Option? Maybe . . . Maybe Not!
Here in many of the North Side of Chicago Neighborhoods our Team works extensively, good housing deals abound. Most Chicago Home Sellers are getting used to the new reality of lower market prices on their homes, while others must sell due to their own economic uncertainty.
Mortgage Interest Rates remain at historic lows, and many consider current prices for many types of homes, investment properties, and some condominiums to be at or near their market bottom - although, of course, that is difficult to most accurately predict.
For some potential buyers, however, their own financial hardship or lack of a down payment still puts the dream of home ownership out of reach. Many have called our Team asking about Renting-to-Own, or Rent with Option to Buy. Here, a condo or home is leased, with the written option to purchase the home after a certain, specified period of time.
Often, the suggested documentation for those considering a Purchase Option include the Standard Residential Lease, plus an included Addendum. Depending on the circumstances, the Addendum can include a pre-agreed purchase price at the end of the lease term. This is sometimes written as a formula, perhaps tied to an appraisal or a couple ... more
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