If your lease and option agreements are setup correctly, NO. The seller can not change the sales price of your rent to own home.But be aware, some rent to own agreements include a clause that states the purchase price is increased by a small percentage every month, quarter, etc. until the tenant/buyer finally purchases the home.Usually the idea behind this small increase is to keep you(the buyer) motivated to buy the home as quickly as possible. Remember This is only true DURING your … [Read more...]

In the previous post we discussed the idea of negotiating an extension period for your rent to own home.The article for extending your option period is discussed here.Some rent to own agreements call for a sizable fee to be paid if you choose to extend the option period. Remember that everything is negotiable and in a buyer's market you have a good chance of negotiating a reduced fee. What Amount Should I Pay? You should try to negotiate a fee of $100 or less to extend your option … [Read more...]

When you sign a lease option or rent to own agreement you are given a certain period of time to purchase the rent to own home for a set price.What happens if you are just a few weeks or months away from qualifying for your home loan and the option period expires?Well, if you have a regular rent to own agreement setup you will simply lose the option to purchase the home and the seller is no longer obligated to sell their home to you.You will lose all the equity you have built in the … [Read more...]

We receive calls everyday from families who are interested in our rent to own properties.It is very uncommon to find homes where 100% of the rent goes toward the purchase price. Buyers Often Believe Every Home Offers 100% Rent Credits More commonly, we see 20-30% of rent offered as a credit, as a generous amount. But, there is no "industry standard" or normal percentage, so when you are discussing what percent of your rent goes toward your purchase, negotiate as much as you can!Also, … [Read more...]

Rent to own homes use an agreement that usually only specifies how much money you will pay in rent each month and the amount you agree to purchase the home for within your option period.It is completely up to you as the tenant/buyer to get qualified for a home loan and come up with the funds to close on the home during the option period.The amount of money you will be required to come up with to purchase the home varies GREATLY based on the state you live in and the deal you negotiate … [Read more...]

Just yesterday, I received a call from a lady who was about to send $20,000 Western Union to a “homeowner” for a rent to own home. The seller lived in another country.Thankfully, after speaking to her, she realized the email she received was a scam and she didn't mail away her life savings.This is a true story, unfortunately. So How Much Is Fair Upfront? There really is no finite number that you could call “fair.” Our company likes to set the option fee at 3.5% of the purchase price. … [Read more...]

Make sure the lease and option agreements state all of the agreements you have with the homeowner/seller when you are working out your rent to own home deal.It is important to have the proper lease and option agreements when setting up a rent to own deal.Often times, a tenant will sign the option documents without thoroughly reviewing them. It's not until later they find out the terms they agreed to when moving in were not actually what was included in the paperwork that was presented to … [Read more...]

If the option period expires before you qualify for a mortgage, the seller no longer has an obligation to sell you the rent to own home.It is VERY important to speak to a mortgage specialist before (or during) your home search in order to gauge how long it will take for you to qualify for the home mortgage.Imagine moving into a rent to own home with a 12 month option agreement, then later finding out that you are unable to qualify for a loan for 2 years or longer!This is especially … [Read more...]

This is negotiated upfront BEFORE you move into the rent to own home. In most cases, the tenant is responsible for repairs to the home during the lease.But, these are details that you NEED to work out upfront, so make sure you include them in your lease and option agreements.Issues and repairs WILL come up during your lease period before you buy and anything you agree to verbally that is NOT in writing will not be legally binding.This is important if major repairs are required during … [Read more...]