Mistakes to Aviod when selling South bend Real Estate

6 Mistakes to Avoid When Trading Up to a Larger Home

6 Mistakes to Avoid When Trading Up to a Larger Home

Unlike the experience of buying a first home, when you’re looking to move-up, and already own a home, there are certain factors that can complicate the situation. It’s very important for you to consider these issues before you list your home for sale.

Not only is there the issue of financing to consider, but you also have to sell your present home at exactly the right time in order to avoid either the financial burden of owning two homes or, just as bad, the dilemma of having no place to live during the gap between closings.

In this report, we outline the six most common mistakes homeowners make when moving to a larger home. Knowledge of these six mistakes, and the strategies to overcome them, will help you make informed choices before you put your existing home on the market.

Mistake 1: Rose-colored glasses

Most of us dream of improving our lifestyle and moving to a larger home. The problem is that there’s sometimes a discrepancy between our hearts and our bank accounts. You drive by a home that you fall in love with only to find that it’s already sold or that it’s more than what you are willing to pay. Most homeowners get caught in this hit or miss strategy of house hunting when there’s a much easier way of going about the process. For example, find out if your agent offers a Buyer Profile System or House-hunting Service, which takes the guesswork away and helps to put you in the home of your dreams. This type of program will cross-match your criteria with ALL avail-able homes on the market and sup-ply you with printed information on an on-going basis. A program like this helps homeowners take off their rose-colored glasses and move into the home of their dreams in an affordable way.

Mistake 2: Failing to make necessary improvements

If you want to get the best price for the home you’re selling, there will certainly be things you can do to enhance it in a prospective buyer’s eyes. These fix-ups don’t necessarily have to be expensive. But even if you do have to make a minor investment, it will often come back to you ten-fold in the price you are able to get when you sell. It’s very important that these improvements be made before you put your home on the market. If cash is tight, investigate an equity loan that you can repay on closing.

Mistake 3: Not selling first

You should plan to sell before you buy. This way you will not find yourself at a disadvantage at the negotiating table, feeling pressured to accept an offer that is below-market value because you have to meet a purchase deadline. If you’ve already sold your home, you can buy your next one with no strings attached. If you do get a tempting offer on your home but haven’t made significant headway on finding your next home, you might want to put in a contingency clause in the sale con-tract which gives you a reasonable time to find a home to buy. If the market is slow and you find your home is not selling as quickly as you anticipated, another option could be renting your home and putting it up on the market later – particularly if you are selling a smaller, starter home. You’ll have to investigate the tax rules if you choose this latter option. Better still, find a way to eliminate this situation altogether by getting your agent to guarantee the sale of your present home (see point number 5 below).

Mistake 4: Failing to get a pre-approved mortgage

Pre-approval is a very simple process that many homeowners fail to take advantage of. While it doesn’t cost or obligate you to anything, pre-approval gives you a significant advantage when you put an offer on the home you want to purchase because you know exactly how much house you can afford, and you already have the green light from your lending institution. With a pre-approved mortgage, your offer will be viewed far more favourably by a seller – some-times even if it’s a little lower than another offer that’s contingent on financing. Don’t fail to take this important step.

Mistake 5: Getting caught in the Real Estate Catch 22

Your biggest dilemma when buying and selling is deciding which to do first. Point number 3 above advises you to sell first. However there are ways to eliminate this dilemma altogether. Some agents offer a Guaranteed Sale Trade-Up Program that actually takes the problem away from you entirely by guaranteeing the sale of your present home before you take possession of your next one. If you find a home you wish to purchase and have not sold your current home yet, they will buy your home from you themselves so you can make your move free of stress and worry.

Mistake 6: Failing to coordinate closings

With two major transactions to coordinate together with all the people involved such as mortgage experts, appraisers, lawyers, loan officers, title company representatives, home inspectors or pest inspectors the chances of mix-ups and miscommunication go up dramatically. To avoid a logistical nightmare ensure you work closely with your agent.

Advertisements
South Bend Home Selling Tips from John Tiffany

28 South Bend Home Selling Tips from John Tiffany

27 Home-Selling Tips for South Bend Homeowners

“…discover how to protect and capitalize on your most important investment..”

Because your home may well be your largest asset, selling it is probably one of the most important decisions you will make in your life. To better understand the home selling process, a guide has been prepared from current industry insider reports. Through these 27 tips you will discover how to protect and capitalize on your most important investment, reduce stress, be in control of your situation, and make the most profit possible.

1. Understand Why You Are Selling Your South Bend Home

Your motivation to sell is the determining factor as to how you will approach the process. It affects everything from what you set your asking price at to how much time, money and effort you’re willing to invest in order to prepare your home for sale. For example, if your goal is for a quick sale, this would deter-mine one approach. If you want to maximize your profit, the sales process might take longer thus determining a different approach.

2. Keep the Reason(s) You are Selling to Yourself

The reason(s) you are selling your home will affect the way you negotiate its sale. By keeping this to yourself you don’t provide ammunition to your prospective buyers. For example, should they learn that you must move quickly, you could be placed at a disadvantage in the negotiation process. When asked, simply say that your housing needs have changed. Remember, the reason(s) you are selling is only for you to know .

3. Before Pricing – Do Homework on other South Bend Homes

When you set your price, you make buyers aware of the absolute maximum they have to pay for your home. As a seller, you will want to get a selling price as close to the list price as possible. If you start out by pricing too high you run the risk of not being taken seriously by buyers and their agents and pricing too low can result in selling for much less than you were hoping for.

Setting Your Home’s Sale Price

  • If You Live in a Subdivision – If your home is comprised of similar or identical floor plans, built in the same period, simply look at recent sales in your neighborhood subdivision to give you a good idea of what your home is worth.
  • If You Live in An Older Neighborhood – As neighborhoods change over time each home may be different in minor or substantial ways. Because of this you will probably find that there aren’t many homes truly comparable to your own. In this case you may want to consider seeking a REALTOR&reg to help you with the pricing process.
  • If You Decide to Sell On Your Own – A good way to establish a value is to look at homes that have sold in your neighborhood within the past 6 months, including those now on the market. This is how prospective buyers will assess the worth of your home. Also a trip to City Hall can provide you with home sale information in its public records, for most communities.

4. Do Some South Bend “Home Shopping” Yourself

The best way to learn about your competition and discover what turns buyers off is to check out other open houses. Note floor plans, condition, appearance, lot size, location and other features. Particularly note, not only the asking prices, but also why they are actually selling. Remember, if you’re serious about getting your home sold fast, don’t price it higher than your neighbor’s.

5. When Getting an Appraisal is a Benefit

Sometimes a good appraisal can be a benefit in marketing your home. Getting an appraisal is a good way to let prospective buyers know that your home can be financed. However, an appraisal does cost money, has a limited life, and there’s no guarantee you’ll like the figure you hear.

6. Tax Assessments – What They Really Mean in South Bend

Some people think that tax assessments are a way of evaluating a home. The difficulty here is that assessments are based on a number of criteria that may not be related to property values, so they may not necessarily reflect your home’s true value.

7. Deciding Upon a REALTOR&reg

Nearly two-thirds of people who sell their own homes say they wouldn’t do it again themselves. Primary reasons included setting a price, marketing handicaps, liability concerns, and time constraints. When deciding upon a REALTOR&reg, consider two or three. Be as wary of quotes that are too low as those that are too high.

All REALTORS&reg are not the same! A professional REALTOR&reg knows the market and has information on past sales, current listings, a marketing plan, and will provide their background and references. Evaluate each candidate carefully on the basis of his or her experience, qualifications, enthusiasm and personality. Be sure you choose someone that you trust and feel confident that they will do a good job on your behalf.

If you choose to sell on your own, you can still talk to a REALTOR&reg. Many are more than willing to help do-it-your-selfers with paperwork, contracts, etc. and should problems arise, you now have someone you can readily call upon.

8. Ensure You Have Room to Negotiate

Before settling on your asking price make sure you leave yourself enough room in which to bargain. For example, set your lowest and highest selling price. Then check your priorities to know if you’ll price high to maximize your profit or price closer to market value if you want sell quickly.

9. Appearances Do Matter – Make them Count!

Appearance is so critical that it would be unwise to ignore this when selling your home. The look and “feel” of your home will generate a greater emotional response than any other factor. Prospective buyers react to what they see, hear, feel, and smell even though you may have priced your home to sell.

10. Invite the Honest Opinions of Others

The biggest mistake you can make at this point is to rely solely on your own judgment. Don’t be shy about seeking the honest opinions of others. You need to be objective about your home’s good points as well as bad. Fortunately, your REALTOR&reg will be unabashed about discussing what should be done to make your home more marketable.

11. Get it Spic n’ Span Clean and Fix Everything, Even If It Seems Insignificant

Scrub, scour, tidy up, straighten, get rid of the clutter, declare war on dust, repair squeaks, the light switch that doesn’t work, and the tiny crack in the bathroom mirror because these can be deal-killers and you’ll never know what turns buyers off. Remember, you’re not just competing with other resale homes, but brand-new ones as well.

12. Allow Prospective Buyers to Visualize Themselves in Your South Bend Home

The last thing you want prospective buyers to feel when viewing your home is that they may be intruding into someone’s life. Avoid clutter such as too many knick-knacks, etc. Decorate in neutral colors, like white or beige and place a few carefully chosen items to add warmth and character. You can enhance the attractiveness of your home with a well-placed vase of flowers or potpourri in the bathroom. Home-decor magazines are great for tips.

13. Deal Killer Odors – Must Go!

You may not realize but odd smells like traces of food, pets and smoking odors can kill deals quickly. If prospective buyers know you have a dog, or that you smoke, they’ll start being aware of odors and seeing stains that may not even exist. Don’t leave any clues.

14. Be a Smart Seller – Disclose Everything

Smart sellers are proactive in disclosing all known defects to their buyers in writing. This can reduce liability and prevent law suits later on.

15. It’s Better With More Prospects

When you maximize your home’s marketability, you will most likely attract more than one prospective buyer. It is much better to have several buyers because they will compete with each other; a single buyer will end up competing with you.

16. Keep Emotions in Check During Negotiations

Let go of the emotion you’ve invested in your home. Be detached, using a business-like manner in your negotiations. You’ll definitely have an advantage over those who get caught up emotionally in the situation.

17. Learn Why Your Buyer is Motivated to move to South Bend

The better you know your buyers the better you can use the negotiation process to your advantage. This allows you to control the pace and duration of the process.

As a rule, buyers are looking to purchase the best affordable property for the least amount of money. Knowing what motivates them enables you to negotiate more effectively. For example, does your buyer need to move quickly? Armed with this information you are in a better position to bargain.

18. What the Buyer Can Really Pay

As soon as possible, try to learn the amount of mortgage the buyer is qualified to carry and how much his/her down payment is. If their offer is low, ask their REALTOR&reg about the buyer’s ability to pay what your home is worth.

19. When the Buyer Would Like to Close

Quite often, when buyers would “like” to close is when they need to close. Knowledge of their deadlines for completing negotiations again creates a negotiating advantage for you.

20. Never Sign a Deal on Your Next Home Until You Sell Your Current South Bend Home

Beware of closing on your new home while you’re still making mortgage payments on the old one or you might end up becoming a seller who is eager (even desperate) for the first deal that comes along.

21. Moving Out Before You Sell Can Put You at a Disadvantage

It has been proven that it’s more difficult to sell a home that is vacant because it becomes forlorn looking, forgotten, no longer an appealing sight. Buyers start getting the message that you have another home and are probably motivated to sell. This could cost you thousands of dollars.

22. Deadlines Create A Serious Disadvantage

Don’t try to sell by a certain date. This adds unnecessary pressure and is a serious disadvantage in negotiations.

23. A Low Offer – Don’t Take It Personally

Invariably the initial offer is below what both you and the buyer knows he’ll pay for your property. Don’t be upset; evaluate the offer objectively. Ensure it spells out the offering price, sufficient deposit, amount of down payment, mortgage amount, a closing date and any special requests. This can simply provide a starting point from which you can negotiate.

24. Turn That Low Offer Around

You can counter a low offer or even an offer that’s just under your asking price. This lets the buyer know that the first offer isn’t seen as being a serious one. Now you’ll be negotiating only with buyers with serious offers.

25. Maybe the Buyer’s Not Qualified

If you feel an offer is inadequate, now is the time to make sure the buyer is qualified to carry the size of mortgage the deal requires. Inquire how they arrived at their figure, and suggest they compare your price to the prices of homes for sale in your neighborhood.

26. Ensure the Contract is Complete

To avoid problems, ensure that all terms, costs and responsibilities are spelled out in the contract of sale. It should include such items as the date it was made, names of parties involved, address of property being sold, purchase price, where deposit monies will be held, date for loan approval, date and place of closing, type of deed, including any contingencies that remain to be settled and what personal property is included (or not) in the sale. Need help, John Tiffany is here.

27. Resist Deviating From the Contract

For example, if the buyer requests a move-in prior to closing, just say no, that you’ve been advised against it. Now is not the time to take any chances of the deal falling-through.

28. Always talk to John Tiffany first!

You are going to need professional advice for someone how knows the industry, the market trends, and has experience. Let’s talk.

South Bend Rent To Own Investment Property John Tiffany

Chapter 9: Not Everyone Likes Rent to Own Homes

Many prospective homebuyers find rent to own homes to be an excellent option that fits their unique financial and home ownership needs. Those who need time to improve their credit can benefit from lease option properties. Individuals having a tough time qualifying for a mortgage also make great candidates for lease to own homes. Of course, rent to own properties may not be for every potential buyer. Take a careful look at instances where renting to own may not be the best solution for a homebuyer’s needs.

Discipline

Homebuyers must have discipline to make a rent to own property work out. For instance, if a homebuyer does not have good credit, then they must work hard to fix the bad credit in order to qualify for the financing needed to buy the home at the end of the lease period. Those who need some time to save up for a down payment must be disciplined enough to work hard to save the down payment money before the end of the lease period so they can make the final home purchase.

Some individuals have bad money habits that have led to financial downfall and without discipline, this home buying option will never work. Homebuyers who do not feel they are discipline enough to make the changes needed to go this route should consider another option when they are ready to purchase a home.

Mortgage Readiness

When entering into rent to own contract, buyers need to prepare to qualify for a mortgage, which will probably be needed to finance the final home purchase. Various things will need to be done to make sure the buyer is ready to take out a mortgage. Buyers need to work on paying the monthly rent amount on time and should also ensure that all other bills are paid on time as well.

Those without credit will need to work to establish good credit in preparation for mortgage qualification. Potential buyers with credit problems will need to take steps to fix those problems before they are ready to apply for a mortgage loan. Individuals unwilling to prepare to take out a mortgage should be ready to make financial changes and take action to ensure they qualify for the needed financing.

Indecision

Rent to own homes require commitment on the part of the homebuyer.  The goal of homebuyers is to eventually be able to purchase the home of their dreams. This means that homebuyers must stick with the home until the end of their contract or they will encounter certain consequences.

If potential buyers are experiencing any indecision before entering a lease option contract, it is best to avoid making the commitment until they are ready. Walking away from a contract will result in losing the lease option fee as well as the rent paid, so this option works best for those who are sure they want the home before making the commitment. Those who may have to move in the near future or those who may face frequent job changes should probably rethink this home buying option. Some are also worried about scams.

Steady Income

Making the financial commitment to purchase a home requires a steady income, no matter the exact method of purchase chosen. To afford rent payments and future down payments, prospective buyers must insure they have a steady income coming in before signing a lease option contract.

Not only is a steady income important when paying the lease payments on rent to own homes, but when applying for financing at the end of the lease period, homebuyers will be required to show lenders proof of steady income. Most lenders require applicants to show steady income for at least the past two years.

At a Glance

  • Those without financial discipline may want to reconsider before choose a lease option home;
  • Rent to own homes are not for people who are not committed to preparing to qualify for an eventual mortgage loan;
  • Homebuyers should avoid signing a contract if they are indecisive about the home;
  • Rent to own homes are not for buyers who may move in the near future;
  • A steady income is essential for those who want to pursue lease option homes.

Chapter 4: Rent to Own Homes Frequently Asked Questions

Although rent to own homes have been available for some time, many people are still unfamiliar with this non-traditional buying option. Many potential homebuyers find themselves asking questions about the lease option process and some of the important terms surrounding it. Buyers can refer to these Frequently Asked Questions and their answers when going through the process of signing a contract on a rent to own home. Keep these helpful answers handy as a guide to this popular home buying process.

Q. How do rent to own homes work?

A. Rent to own homes allow homebuyers to lease a home while reserving the option to buy the home at any time either during the period of the lease or the end of the lease. During this stretch of time, the homeowner’s hands are tied and they are not permitted to advertise the residence as for sale after entering an agreement to sell it to the prospective buyer.

There are two sections to a rent to own agreement. The first section establishes what the monthly rental payment will be. The second section of the rental agreement establishes that the homeowner is bound to sell the residence to the prospective purchaser at a predetermined price.

Q. What is the option fee?

A. An option fee is often confused with a rental security deposit, although they are not the same. This fee is paid up front at the start of the lease. In most cases, the option fee is not refundable at all, something that potential homebuyers should keep in mind.  Whether or not the prospective homebuyer decides to go ahead and buy the residence in question, the seller will still keep the fee. In some specific kinds of rent to own homes agreements, this particular option fee is applied to the buying cost of the home.

Q. How much will the option fee cost?

A. The option fee is an integral part of lease to own agreements. According to the SF Gate website, a usual option fee falls between three and five percent of the agreed upon buying price. Of course, this is just an average figure, so it can vary, depending on each unique situation. The good thing about rent to own homes is that the parties involved may negotiate the amount of the. Usually, sellers are attracted to homebuyers that can put down more money on the home.

Furthermore, the more cash that homebuyers contribute as part of the option fee, the less they will need to finance elsewhere when the lease expires and they are ready to purchase the home.

Q. What is monthly rental credit?

A. Many rent to own agreements feature a provision that sets aside a fraction of the monthly rental payments as credit toward the purchase price of the residence. This amount varies from situation to situation, yet it may be as great as up to 50 percent of the rental payment. This provides homebuyers with the benefit of creating equity while renting.

Q: Which Party pays for the homeowner insurance and the real estate taxes on the rent to own residence?

A: The party paying for both the homeowner insurance and the real estate taxes on the rent to own home is usually the seller of the property. Of course, once the homebuyer makes the purchase and takes possession of the home, the taxes and insurance costs will then be their responsibility.

Q: What should consider rent to own homes?

A: Many individuals find rent to own homes an attractive option. Previous sales have shown that the following people often consider lease option properties:

  • Homebuyers who like to invest in real estate
  • Homebuyers fed up with being just renters and want to head toward real homeownership
  • Homebuyers that want to try out a new school district or a new neighborhood prior to making a commitment to it in the long term
  • Homebuyers dealing with damaged credit and who may be currently incapable of qualifying for appropriate mortgage rates because of credit problems
  • Homebuyers who need and want time to get their finances in order before making a home purchase

Q: Is there an obligation on the part of the renter to purchase the home at the close of the lease period?

A: No, there is absolutely no obligation on the part of the renter to purchase the home at the close of the lease period. The seller gives the homebuyer the first option of buying the home, yet the ultimate decision of whether to purchase or not to purchase is totally up to the renter.

Q: Are the down payment and the monthly rent credits going to be given back to the renter if he or she refuses to go through with purchasing the residence at the close of the lease period?

A: The down payment and the monthly rent credits are going to be non-refundable. If one refuses to take advantage of the buying option, then previously money probably will not be returned. This feature of rent to own homes should carefully considered by buyers before entering a lease option agreement.

At a Glance

  • Rent-to-own homes are based on a lease of a residence with an option to eventually buy the residence;
  • The option fee will be paid up at the start of the rental period;
  • The option fee usually falls between three and five percent of the predetermined buying price;
  • The monthly rental credit is a fraction of the monthly rental payments that is put aside to go toward the purchase of the home;
  • The seller of the home pays for the homeowner insurance and the real estate taxes, then the renter/buyer eventually does;
  • Rent to own homes are great considerations for many individuals;
  • There is no obligation put on the renter to actually buy the home at the close of the lease-to-own period;
  • Neither the monthly rental credits nor the down payment are to be refunded to the renter.

Chapter 1: What Investor need to know about South Bend Rent-to-own Investment Property

For many homebuyers, and real estate investors the prospect of homeownership/property management is synonymous with the American Dream. Individuals used to work hard, save their money, qualify for a home loan and then finally purchase the home of their dreams. If only that formula was still reliably applicable to today’s housing market!

Unfortunately, due to the massive problems with the real estate market in the last few years, qualifying for home loans has become a challenge for prospective homeowners. While that might seem like reason to put off any dreams of homeownership, consumers do have other available options. In a situation where an individual cannot qualify for a home loan, they might want to look at rent to own homes, often referred to as lease to own properties.

How does it work?

Rent to own transactions differ from traditional home purchases. The potential renter enters into a deal with the landlord to buy the property by a set date in the future and at the present-day market value. While the renter is actively paying rent, considerations need to be taken in order to effectively save for the required deposit. In some of these scenarios, a renter will not only have established such an arrangement or agreement with the landlord, but also may well pay said landlord additional rent towards the deposit required to make the final purchase.

The whole point of rent to own properties is to allow prospective buyers to make the final purchase at a later date. This means is that instead of a renter just agreeing to purchase the piece of real estate at a fixed cost, he or she is smartly putting forth payments toward the eventual purchase of the residence by way of additional payments.

An Example

The following is a very simplified example to help consumers further understand rent to own homes. For instance, a buyer finds a property they like commits to a lease of two years for said property. At the same time, the buyer would then pay the owner of that residence a fee of $1000, which is called the “option fee.” This means that the intended buyer is going to occupy the residence for the period of those two years.

Within those two years, the prospective buyer can either purchase it or pass on the purchase. During that two-year period, the seller only has the option of selling that property to the intended buyer.

However, consumers considering this option should realize that they will have to forfeit the option fee” if they decide to pass up on the chance to eventually purchase the residence.

On the flipside, if the prospective homebuyer ends up buying the residence inside of the specified time period, they will routinely receive their “option fee” back in the form of a credit.

What is the Difference between Rent to Own Homes and just Renting?

Some individuals hear the term, “rent to own homes” and confuse it with renting a home? Both terms include the word “rent,” which is a cause for some confusion. It is important to realize that there is a big difference between renting a home and renting to own a home. To help clear up some common misconceptions and confusion,  the following will clarify the differences between the two real estate concepts.

Rent Money

When renting a home, the rent money paid each and every month will be lost forever. On the other hand, when going the lease option route, a fraction of the rent that is paid will be put toward the down payment or even the price of the home. The rent paid on rent to own homes is similar to a savings account. The money that is put toward the down payment or home price in a rent to own contract is referred to as “rent credit.”

Landlords

When renting a property, consumers have a landlord that probably will not want to sell the property to anybody. While one could view the seller as the landlord in a rent to own transaction, this is not a an accurate picture. It is more accurate to view the seller as a motivated seller who eventually wants to succeed at selling the home to the renter, who will eventually become the new owner.

Purchase Price

In the case of a rental property, the purchase price will never be discussed or even referred to at all since there is no desire for the property to be sold. With rent to own homes the purchase price is actually determined at the beginning of the agreement. The purchase price that is determined at the beginning of the lease will be done through something referred to as the “option to purchase.”

Repairs

With a rental property, the landlord is actually the one who is accountable for making all the repairs that the property requires. In the case of rent to own homes, this no longer applies, mainly because there really is no landlord. Since the person renting the home will be the eventual owner in a rent to own homes scenario, they are responsible for any and all repairs. After all, the renter will be eventual homeowner, so he or she will be treated as such.

Cost of Rent

If one rents a property, the ensuing cost of rent is going to be set based upon the market rates. For rent to own homes, the rent is likely going to be higher than what the normal rent would be because a fraction of it is going to be reserved either for the down payment or as a contribution towards the actual selling price. This allows the eventual buyer build up some equity as he or she is anticipating an eventual purchase.

Using RealtyStore.com

Prospective buyers interested in rent to own homes will find that RealtyStore.com offers many exciting benefits. This website allows homebuyers to use an easy search engine to find rent to own homes in any number of places right across the United States. For example, an individual may want to search for rent to own homes in Los Angeles, California:

The following quick and easy search results immediately pop up on RealtyStore.com:

Going further, buyers can then click on the search results to open up an individual property webpage:

Stay Protected

Even with rent to own homes, certain problems may come along, which is why buyers must learn more about protecting themselves effectively. It is imperative to remember never to deal with an owner who has financial problems, since they could end up losing the property while the buyer is engaged in a lease option transaction.

To guard against this situation, one could easily insert the necessary lease payments into an account that goes directly to the home lender. Of course, when a buyer is considering rent to own homes, it is important to check to ensure that both the insurance and the taxes have been paid.

At a Glance

What have we learned about rent to own homes? We have learned that:

  • Lease option deals allow home ownership for buyers who have a hard time qualifying for a home loan;
  • Lease option agreements are agreements between a renter and a landlord to purchase the home at a set date for the present-day market price;
  • rent to own homes start with a lease of the residence;
  • There is a huge difference between rent-to-own homes and just renting any property;
  • Rent money is lost forever if one just rents, but a fraction of the rent in rent to own homes is utilized toward either the down payment or even the price;
  • The seller is not really the landlord in a rent to own homes situation;
  • The purchase price is agreed upon at the start of the lease;
  • Repairs are handled by the eventual buyer in rent to own homes situations;
  • The cost of rent might be a bit higher in rent to own homes arrangements than in simple rental scenarios;
  • RealtyStore.com is a great resource for those who search for rent to own homes in South Bend.

Image

Next: Pros and cons for home buyers