Philadelphia market conditions encourage rent-to-own

        As homes in the Philadelphia area are staying on the market longer, many sellers are turning to rent-to-own agreements. An article in the Philadelphia Inquirer titled Market forces change, by Joanne Cleaver, takes a look at a couple who spent $100,000 in remodeling their home, only to be forced to mark-down their asking price from $475,000 to $439,000. Now they are forced to look at rent-to-own agreements because they’d rather do that then lower their price further. Their reasoning? "It's like the stock market: You don't sell at the bottom," says the seller.

The question therefore begs, what are rent-to-own agreements and are they really beneficial to both parties? I prefer to call these rent-to-own contracts lease-options, as they give the buyer a ‘lease’ with the ‘option’ to purchase at a given point in time (but this is just a technicality in language that I prefer to use). The basic benefits for the buyer are as follows:

1. they can get in the home they want with little out of their pocket
2. gives a sense of hopeful future ownership
3. lock in purchase price
4. chance to repair past credit problems and qualify for appropriate funding in the      future

Benefits for seller:

           1.  quick transformation of equity to cash
     2. alternative option to lowering your selling price
     3.   great incentive for tenant to maintain property
     4.  calculated rate of return with little market risk

Described above is a brief overview of the benefits for traditional lease options. However, here at World Wide Credit, we have been advising REALTORs on how to create a market through the use of lease options, and still get paid. Typically real estate agents shy away from lease options because there is no reward. The premise of the lease options program involves matching up investors/sellers with potential lease options clients. With the current market conditions in Philadelphia and around the country, this different type of real estate may emerge as a practical alternative for REALTORs. Specific to this topic, we presented an audio and visual ‘webinar’ that had great response. For a copy of the presentation please feel free contact me.

So is the seller in the article doing the right thing? In their situation, it would make perfect sense. They are sticking to their claim and not “selling at the bottom.” This is just an example of the changing marketplace and how lease options may soon become the most viable option for sellers who cannot sell at the price they want.

By, Joe Brady

Comments

[Jerell Williams]

Me and my family are looking for a rent to own house in phila. Please send me info as it becomes avail.

[Brenda Hopgood]

My daughter and I are looking for a rent-to-own house in Philadelphia. Please forward any information when it becomes available.

[Credit Expert]

I'd love to move back to PA. Please send me any info you have.

[Michelle]

I am looking for a rent to own house for me and my daugter. Please contact me with information on how I can get started.

[condominium philippines]

Is there a place to rent for 1 night? Checking in saturday morning out sunday 12 noon. Need one big house with 2 or 3 bedrooms with bathrooms.

Deirdre G

[Annette Ellis]

my name is annette tolbert-ellis and i am a 56 years old widow and with one 18 years old duaghter whom is non-verbal and has autism , i am seeking a peiece of rent-to-property and in the west philadelphia and area and currently own a fixed income and both me and my daughter recieve spousal social security and we recieve the same amount and due to the fact that on 2/25/05 both me and my daughter was living in a deceased relative home and we had lost everything and except for the clothing on our backs we had to fiend for ourselves and i couldn't afford to incontinue on paying my creditors and as of 9/30/09 i had to file bankruptcy and under chapter 7 and 0n 9/30/09 i have my discharge. and also i amlloking for a decent 3 bedroom and with 2 bedrooms and single family home or condonmium and i have been paying rent here at brighton for five 5 years now and falithfully and at 675.00 per month and for i bedroom and i tied of paying someone's else mortgage and i am moving forward and i am also seeking money and for a grant and for a rent to by home any information being sent to me and regarding this important subject matter would gladly be appreciated.and thanks so much and have a great day. [email protected]

[Williams]

I am a non residential PA, so i am looking for rent to own a house in philadelphia. Any information available please forward it.

[philippine real estate]

I also agree in rent to own house, I am looking for a rent to own house for my family. It is much better if you have a small budget and you can't afford to buy in cash.

Mitch

[Mortgage Mark]

There are plenty of rent to own opportunities in Philadelphia. I personally do not have any but when I was shopping for a home I did look into them and even have one on my street right now.

http://www.themortgagemark.com

[creative recreation]

The house is the place for you people! With it we are free from sun and wind! You speak very good! It enjoys popular support! Now we all need a house! Thank you for your willingness to share with us

[new york payroll]

What is the average rent to expect in different areas of Chennai?