How Does A Rent-to-Own Property Work?

If you don’t have a lot of cash on hand to secure a home with a sizable downpayment, you might feel stuck. It’s quite a feat to be able to save up the 20 percent cost of a home that is generally required to purchase a home. Your options may seem limited when you want to own a home. There is one option that could be a good idea to consider when you’re in this situation. That’s the idea of finding a rent-to-own property. 

How Does A Rent-To-Own Property Work?

First, know that these properties are hard to find. That’s why you may not have thought of it as a first option. When you do find a property like this that suits your needs, you should know all of the ins and outs before you commit to the home. The agreement works just as it sounds, but there are always a few bits of extra text that can make the difference in any agreement in a rent-to-own property. 

Lease With A Purchase Option

With this type of agreement, you’ll need to pay what is called an option fee in order to give you the right to purchase the property at a later date. The seller is then required to sell the property to you as a tenant and apply the option fee to the price of purchase. If for some reason you have paid the option fee and decide to walk away from the property after a time, the money that you have paid as an option is simply lost. The option fee is usually a percentage of the purchase price ranging anywhere from 2-7 percent of the home’s price.  

Lease And Purchase Agreement Rolled Into One

In this type of rent-to-own agreement, both the tenant and the seller agree on fixed purchase price for the home, or agree that a purchase price will be determined at a later date through an appraisal. Everything is set up from the beginning including the closing date for the home.

This type of deal in a rent-to-own situation is often considered the better choice. Know that a fixed price option may put you in a better financial position than an appraisal option. You’ll have instant equity in the property when you buy it. This is especially helpful in high competition markets. In any other types of market, you may be better off with an appraisal. This ensures that you don’t overpay for the house.

How Your Rent Payments Apply

Rent-to-own gives you an advantage in that you get the added benefit of rent credits. This is where a percentage of your monthly rent payment is applied to the purchase price of the home. The amount of percentage that’s applied will be agreed upon with your landlord ahead of time.

While a rent-to-own option to purchase a property can be a bit more complicated than other ways of purchasing a home, it can be a great way for people different financial situations to become home owners. Make sure you go over everything carefully before you sign anything so that you fully understand the agreement you’re entering into.       

     

Video Tour – Single-Family Home – Dudley, MA 01571 Real Estate – For Sale

Iconic family farm for sale! This Dresser Hill property has been in the family for generations! How will you use the oversized garage with office? For business or car storage? Level acreage, sheds and home with enormous deck, part of it covered for protection from the weather. Enjoy the rural views of miles and miles of countryside! Kitchen was renovated to have beamed cathedral ceilings. The formal dining room still showcases the old-fashioned, high style of the time built in hutch. Many original features remain! “Gameroom” is enclosed porch addition has separate entrance and lots of windows with beamed cathedral ceilings. A nice modern surprise! Priced low because there is a roof leak that has caused the need for repairs, peeling paint etc. Cash buyers please, no FHA/VA loans. There is most likely lead paint and other repairs needed. Title 5 has passed for 3 BR. Dirt floor in basement. The garage is huge and has an attached office area. Buyer to verify all info.

More Info on this Property | New Listing Alerts

Single-Family – 21 Baylies Rd Charlton, MA 01507 now has a new price of $379,500!

OPEN HS (OCT-14) 12-130 One owner custom home has been professionally maintained and upgraded over the years! This move in condition property will fit many household requirements! Open floorplan, multiple baths, private and useable land with detached 2 story barn with 100 amp elec. Come and see this two-story, cathedral master suite with upper level den, private bath and sliders overlooking backyard! Expand the lower level-it is ready for heat and bathroom expansion! Your wrap around porch or enclosed sunroom is a great place to enjoy your property in any weather. Located between Shepherd Hill and all Charlton schools, Nearby Treehouse brewery and Buffumville State park will give outdoor entertainment options for years! One hour to Logan, Springfield, T.F.Green and Bradley airports! Surrounded by trees on quiet road for country living, yet close to everything over back roads. Owners just went through the property with a fine tooth comb to make the inspection and owning it easy

This is a Colonial/Contemporary style home and features 10 total rooms, 2 full baths, 1 half bath, 3 bedrooms, 1.39 Acres, and is currently available for $379,500.

For complete details click here.

Single-Family – 101 Blood Rd Charlton, MA 01507 now has a new price of $499,900!

One of the prettiest homes in Charlton! Elegant home in stunning, natural setting features outdoor-living patio hidden along a garden oasis. Easy to maintain landscaping is worthy of the best home magazines! Tasteful custom features very few executive homes have. Wall of windows in gourmet kitchen to enjoy patio with firepit and mood lighting right outside. Living room have see-thru fireplace. Family room has custom wet bar and built-ins between fireplace and enormous windows. Kitchen island is 1 inch slab of rich granite that measures 11 x 5! Too many major renovations to fit here! 24 x 24 two story addition with Master suite is luxurious and separated from bedrooms by airy, fireplaced loft home office. Expandable finished basement nice enough for in-laws! Central location is one hour to 3 International airports & Bos/Hartford/Springfield/Prov. Brook babbles by as you enjoy your beautiful landscape changing with the seasons. 3D tour: https://www.vieweet.com/pano/PVLZDLTY

This is a Cape/Contemporary style home and features 10 total rooms, 2 full baths, 1 half bath, 3 bedrooms, 1.18 Acres, and is currently available for $499,900.

For complete details click here.

Single-Family – 187 Sunset Dr Charlton, MA 01507 now has a new price of $158,000!

Glen Echo waterfront has beautiful sunsets! It has a detached, oversized two car garage with a bathroom. Master bedroom has fireplace. Open living room, sunporch and kitchen. No heat besides parlor heater & fireplace. No well, water comes from pump in the lake, so cash buyers only, please. Verify property access using the driveway. This property does not have an interior bathroom. There is an outhouse near house and a bath connected to town sewer in the garage. This is the last home at the end of the driveway. Realtors, pls make sure you can accompany buyers down steep stairs into the house. Accompanied showings w buyer agent at all times pls.

This is a Contemporary/Ranch style home and features 3 total rooms, 1 half bath, 1 bedroom, 0.21 Acres, and is currently available for $158,000.

For complete details click here.

Single-Family – 232 Dresser Hill Rd Dudley, MA 01571 is now new to the market!

Iconic family farm for sale! This Dresser Hill property has been in the family for generations! How will you use the oversized garage with office? For business or car storage? Level acreage, sheds and home with enormous deck, part of it covered for protection from the weather. Enjoy the rural views of miles and miles of countryside! Kitchen was renovated to have beamed cathedral ceilings. The formal dining room still showcases the old-fashioned, high style of the time built in hutch. Many original features remain! “Gameroom” is enclosed porch addition has separate entrance and lots of windows with beamed cathedral ceilings. A nice modern surprise! Priced low because there is a roof leak that has caused the need for repairs, peeling paint etc. Cash buyers please, no FHA/VA loans. There is most likely lead paint and other repairs needed. Title 5 has passed for 3 BR. Dirt floor in basement. The garage is huge and has an attached office area. Buyer to verify all info.

This is a Cape/Other style home and features 8 total rooms, 1 full bath, 4 bedrooms, 2.00 Acres, and is currently available for $240,000.

For complete details click here.

Open house on 10/14/2018 at 21 Baylies Rd Charlton, MA 01507


Date: 10/14/2018 Time: 12:00 PM to 1:30 PM  
For Directions: feel free to contact me.  
For more information: click here for the full details  

One owner custom home has been professionally maintained and upgraded over the years! This move in condition property will fit many household requirements! Open floorplan, multiple baths, private and useable land with detached 2 story barn with 100 amp elec. Come and see this two-story, cathedral master suite with upper level den, private bath and sliders overlooking backyard! Expand the lower level-it is ready for heat and bathroom expansion! Your wrap around porch or enclosed sunroom is a great place to enjoy your property in any weather. Located between Shepherd Hill and all Charlton schools, Nearby Treehouse brewery and Buffumville State park will give outdoor entertainment options for years! One hour to Logan, Springfield, T.F.Green and Bradley airports! Surrounded by trees on quiet road for country living, yet close to everything over back roads. Owners just went through the property with a fine tooth comb to make the inspection and owning it easy!

4 Factors for Homebuyers to Consider Before They Make an Offer

The real estate market is filled with many high-quality residences, and after a comprehensive search, you’ve found a residence that fits your personal needs and budget perfectly. However, you may need to think twice before you submit an offer on this residence.

There are many factors that homebuyers should consider before they make an offer on a house, including:

1. Neighborhood

Ideally, you’ll want to find a home in a community filled with friendly neighbors. But in many cases, homebuyers may focus exclusively on a residence and ignore the neighborhood entirely.

Taking a walk around a neighborhood often allows you to get a better feel about what it is like to live in a neighborhood and may give you a chance to meet some of the neighbors as well. Also, a simple walk around the block will provide you with a better idea about whether a house’s value may rise or fall in the foreseeable future.

For instance, a neighborhood filled with houses with well-maintained front lawns, nearby parks and schools and other local amenities may prosper for years to come, and home values may rise in this neighborhood over the next few years.

2. Crime

No one wants to live in an unsafe area, and you can learn about crime near a prospective home before you submit an offer on a residence.

Contacting a local police station usually is a great idea for homebuyers who want to find out about crime statistics in a particular area.

Furthermore, your real estate agent can provide insights into crime in a specific area and help you determine whether a particular house is the best option.

3. Traffic

Although your dream home features all of the amenities you want, it might fail to provide you with quick, easy access to your office day after day.

For example, traffic can be a problem if your house is located in or near a major city. And if you need to travel to work every day, it is important to understand how traffic could affect your daily commute.

To better understand traffic patterns in a particular area, try driving to a residence at different times during the day. By doing so, you can learn about traffic patterns near a house and be better equipped to make a more informed decision about whether to submit an offer on a residence.

4. Taxes

You’ve been pre-approved for a mortgage and have established a monthly budget for a new home, but taxes may vary depending on where you move. Thus, you’ll want to learn as much as possible about potential taxes that you could face at a new residence before you submit an offer.

Taxes may add up quickly, but homebuyers who budget accordingly can minimize the risk that they’ll fall behind on tax bills. And with support from your real estate agent, you can learn about taxes that you may encounter if you purchase a particular residence.

If you’re fully satisfied with a residence after you consider the aforementioned factors, you’ll be ready to submit an offer and move one step closer to moving into your dream house.

Single-Family – 47 A F Putnam Rd Charlton, MA 01507 now has a new price of $540,000!

Picturesque home and 3 story New England barn has level, private acreage with views of lush green lawn surrounded by evergreen trees. The barn is solid and ready for you to customize for horses or hobbies! Rebuilt reproduction colonial home has sunny, open floor plan. Front to back fireplaced living room/dining room and cathedral master suite. In 2014, massive renovations to Kitchen, electrical, plumbing and the lower level. The kitchen has a wall of windows overlooking the peaceful property and deck. In the lower level, the nicely finishFamily room has atrium doors to a covered patio area and windows. Buffumville State Park at the end of this road where you can launch boats, use the beach or trails! Minutes to Treehouse Brewery, Market Basket and back roads to RT 395! One hour to Hartford/Bradley, T.F. Green, Boston/Logan and Springfield. This is a rare combination of a fine home, multi-use barn and incredible property that just does not come up for sale! Appt requir

This is a Colonial style home and features 9 total rooms, 2 full baths, 1 half bath, 4 bedrooms, 2.04 Acres, and is currently available for $540,000.

For complete details click here.

Single-Family – 101 Blood Rd Charlton, MA 01507 now has a new price of $500,000!

One of the prettiest homes in Charlton! Elegant home in stunning, natural setting features outdoor-living patio hidden along a garden oasis. Easy to maintain landscaping is worthy of the best home magazines! Tasteful custom features very few executive homes have. Wall of windows in gourmet kitchen to enjoy patio with firepit and mood lighting right outside. Living room have see-thru fireplace. Family room has custom wet bar and built-ins between fireplace and enormous windows. Kitchen island is 1 inch slab of rich granite that measures 11 x 5! Too many major renovations to fit here! 24 x 24 two story addition with Master suite is luxurious and separated from bedrooms by airy, fireplaced loft home office. Expandable finished basement nice enough for in-laws! Central location is one hour to 3 International airports & Bos/Hartford/Springfield/Prov. Brook babbles by as you enjoy your beautiful landscape changing with the seasons. 3D tour: https://www.vieweet.com/pano/PVLZDLTY

This is a Cape/Contemporary style home and features 10 total rooms, 2 full baths, 1 half bath, 3 bedrooms, 1.18 Acres, and is currently available for $500,000.

For complete details click here.