If home ownership is what you’re seeking but life has thrown obstacles in your path consider leasing a home you know the owner is willing to sell. Doing that will save you from having to move twice. Also, you’ll have a bird's eye view of the home and its many quirks while getting a great feel for your neighbors and the neighborhood.
Rent 4 Real is a lease then own program. This is not a Lease to Own transaction. Although there are similarities, it’s the differences that carry the most weight. First off, unlike lease to own there is no large (non-refundable) deposits required. Those deposits typically range 10 - 20 percent for a fixed amount of time, usually 1 - 3 years. And if ‘Life Happens’ and you can’t complete the purchase within the allotted time then you’ll have to pay an additional (non-refundable) deposit to extend that time. Let’s think for a moment, If you’re the homeowner offering your home as a lease to own, it would benefit you greatly if the family leasing your home couldn’t fulfil their obligations by finding another source for refinance within the time allotted. You have the option of asking for another down payment or terminating the deal and finding another family, asking for the same price and terms. Advantage Seller! Another difference is the interest you’ll be paying. I know of some families that have paid interest rates in the double digits, which means your monthly payments will be much higher than those paying the prime rate. Advantage Seller! Finally, Lease to own contracts places the responsibility of maintenance squarely on the shoulders of the the buyers. There is no call to the owner or the property manager if the A/C stops working, the onus of repair cost falls completely on the lessee. Again...Advantage Seller!
With Rent 4 Real or Lease THEN own the goal is to make the transaction a Win-Win for both the Seller and Buyer. First off, no Large down payments for this transaction because it’s a straight lease. There is a security deposit, but the deposit follows the house. If the tenant purchases the home then the deposit is refunded. If the tenant doesn’t purchase the home, the deposit is used to cover damages (if any) made by the tenant. What’s important to note is most of the homes in the program are owned by those who are no longer living in the home and are living elsewhere paying two mortgages. So putting a buyer that wants to lease the home until they’re ready to buy will take a lot of financial pressure off of the seller. The buyer will not be paying higher interest rates because they’ll be seeking their loan from a prime lender and locking in the market rate at the time of purchase.
Home Owners - If you’re about to put your home on the market in Killeen, Harker Heights and Copperas Cove please know we are still in a buyers market. This affects the amount of time the average home sits on the market. Currently the amount of time homes stay on the market in central Texas is about 5 months. If you can’t afford to pay two mortgages and would like the option of relieving some of your financial burden give me a call so I can match up your home with my list of buyers/renters. And for those of you already working with an agent. Ask that they give me a call. The process I use keeps everyone in the loop.
Blog submitted by: Ron Cooks of The Real Estate Market Place – Servicing the Greater Fort Hood area which includes: Killeen, Harker Heights, Temple, Belton, Copperas Cove and Nolanville. Feel free to call Ron at (254) 702-0064 if you have any questions regarding Central Texas Real Estate.
For Real Estate Listings in Central Texas visit my website at: www.ron.killeenlistings.com or if you’re on the go text 'Ron' to 254-227-5799
Author:Ron Cooks Phone: 254-702-0064 Dated: October 30th 2015 Views: 355 About Ron: I’m a retired Army Warrant Officer that served our nation for 25 years. I was born and reared in ...
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