I am very new  to nesters. I have aquired 3 leads and  they are all interested in rent to buy. I know a bit about it.

I understand that a part of the rent is applied to purchase price or down payment. What I am finding in nj :the homes that are listed as interested in this, are all over priced. Do I just call sellers that have been on the market for a while.Or am I missing something.

 

Caprice

 

 

 

Caprice,

There are various avenues to search for listed properties that will consider rent-to-own. Your local MLS is a good start. On Nesters.com we have around 500,000 listings nationally with that option (click here to search). There are a lot of motivated sellers out there that explore all possible options - sale, rent-to-own and rent.

Also, it may be a good idea to check whether that tenant buyer can qualify for a mortgage. As long as they have solid income there are programs out there that can get them a mortgage even if their credit is not perfect. Sometimes a better strategy is to find them a short term rental and then get them to buy traditionally in 6-12 months.

If the buyers do not qualify for a mortgage or have no down payment, how would a realtor help them with a lease to buy? What would the procedure be for realtors to work with this type of transaction? Are there special contracts for realtors to use in order to get there commissions at a later date when the house is purchased?

Hi Caprice,

Are you working rent to buy transactions yet.?  I am a realtor in the Delaware area and am also wondering how a realtor would work with these.  There are many buyers interested in rent to own.  If you are working them, maybe you could give me some suggestions.  Thanks.

In this ever changing marketplace, I try to discourage clients from lease to purchase. If you lease to purchase, what price are you going to use for the purchase price? Today's value? The Value next year? The price the seller wants? At the end of the year's lease is the purchase price a fair market value? Or is it Higher or Lower than the going rate for similar homes? And how are you getting your commission-on the rental only? on the sale price at the end of lease, whatever that is? Or Both? Is the seller making a good and fair price or are they loosing money or overcharging for the property. And is the buyer paying fair market value, getting an exceptional buy, or over paying and having negative equity at COE?

Financing is based on the current appraised value at the time of purchase, not on market price at the beginning of the lease. Therefore, it is to the buyer client's best interest that I suggest that they lease for a year while they work to improve their credit and save a downpayment, and then buy a home at a fair market value at that time. Sometimes the best service you can give your client is to point out the logical process they should follow. Not get in over their heads or have a bad outcome due to market changes. As the real estate professional, youn know through experience what is the best avenue to protect your client's interests. And sometimes that avenue is not making a sale today, but guiding your clients through the process of responsible credit management to be able to buy a home down the road. Your client will be grateful in the long run and you will not only have a client for life, but they will be recommending you to their friends and family.