If You Can't Buy My House, Rent to Own It
It’s a concept that’s coming into vogue. But is it right for you?
If You Sign the Contract...
You are in good company. Presumably because of the poor housing market, some new apartment buildings and condominium developments around the country have been offering lease-options to their customers rather than going the traditional sales route.
The most important factor in doing this successfully is due diligence:
- Have a mortgage broker involved at the outset. If the mortgage broker reviews your potential buyer’s paperwork and feels that he or she will be a good candidate to buy the house in two years, you can feel reassured that you’ve done everything you can do to ensure a successful rent to own transaction.
- Have an attorney review the contract.
- Work with a real estate agent who has extensive experience with lease options.
As New York City-based financial planner Patrick Astre concludes, “It needs to be a fair deal, but it will never be a fabulous deal, and you’re not doing it because you’re going to get a fabulous deal. You have someone who is going to tie your house up for a couple of years, part of the rent’s going to be tied up in a deposit. But it is a good idea -- under the right circumstances.”