In a tough market, it has advantages for both buyers and sellers http://www.realtor.com/home-finance/real-estate/buyers/lease-to-buy-may-be-good-option.aspx?source=web   By Phoebe Chongchua Lease-To-Buy May Be Good Option Many people who are struggling to get mortgages are finding comfort in a growing trend: lease-options. This is a contract that allows renters to lease the property and, at the end of their lease, they have the option to buy the home. Hopeful buyers with poor credit are finding the rent-to-own option creates an opportunity to repair their credit while positioning them for homeownership. It’s a win-win situation. Sellers find that properties that once sat vacant now offer cash flow. The concept, while not new, is gaining momentum. There are a number of reasons buyers are finding this option appealing and it’s not just because of bad credit. Some buyers are not sure if they’re ready to own a home and take on all the responsibilities and extra costs that go with homeownership; the lease-purchase contract gives the buyers a chance to give homeownership a test drive. Individual sellers in the housing resale market are considering this method to help get their homes sold and so, too, are developers who have found they’re loaded up on properties they can’t sell. “In Boston, as is true with so of much the country, the condominium market is a little bit soft right now,” says Eric Gedstad, Corporate Communications Manager, MassHousing in Boston. So, some developers are trying the rent-to-own program in hope of getting condos sold. “There is one development where the renters sign an agreement that says ‘If they would like to purchase the unit that they are renting any time within the next year, they can do so for a fixed price and they would have first dibs on that,” says Gedstad. Understanding the lease-option is very important. There are various differences in the way this type of contract can be drafted, so it is critical to hire experts to help negotiate the process to make sure you understand the terms and are protected. Here is some basic information about leasing with the option to buy a property. Typically, in return for the landlord/seller extending the offer to buy the property after a period of time (usually one to three years) at a predetermined price, the tenant/buyer has to pay an upfront option (fee). That fee is generally non-refundable. A portion of the monthly rent may be applied toward the down payment to purchase the home. Advantages for the buyer/tenant:     Under this type of lease-option contract, for the period stated, you are the only one who has the option to buy the property.     Typically a portion of your rent goes toward building equity and, when...

 Don’t let your emotions cloud your judgment  http://www.realtor.com/home-finance/real-estate/buyers/14-things-to-consider-before-buying-home.aspx?source=web By Diane Benson Harrington Wait! That house may seem like everything you’ve ever wanted, but before you make an offer, take some time to consider a few things beyond the size, style and price.When buying a home, it’s easy to let emotions get in the way of reality, or get sudden amnesia about factors that may make a difference. “Sometimes we want something so badly, we’re not willing to ask all the questions we should,” says Leslie Levine, author of “Will This Place Ever Feel Like Home?”For instance, she says, you may see a basketball hoop over the garage and assume the neighborhood is great for kids. But a closer inspection may show that it’s rusted and hasn’t seen a ball in a decade, and that other yards in the neighborhood have no jungle gyms or tire swings out back. 1. Visit at various times of day The windows that let in so much light during the day may be a peeping Tom’s dream at night. That seemingly quiet residential street may be a noisy, highway-feeder street during morning or evening rush hour; or it may be near impossible to get from your quiet street across traffic and onto the feeder street in the morning. The adjacent school may seem like a nice perk if you’re buying in the summer, but during the school year, daily playground noise and extra traffic may be more than you bargained for. 2. Look through recent newspaper archives “Make sure you’re getting information on what you can’t see,” Levine suggests. Perhaps the municipal water well that feeds your neighborhood has high levels of contaminants or a proposed high-voltage power line may soon be coming through your back yard. You can also check with the city or county to see if there are any proposed projects. 3. Talk to neighbors How many people in the neighborhood own their homes? Sometimes it’s hard to tell at first if you’re choosing a neighborhood that’s primarily rental houses. 4. Ask if the neighborhood has an association “Is there a newsletter for it? How often does the neighborhood get together? Do they have a block party every year?” Levine asks. “Even if you don’t plan to attend, the fact that they’re having a gathering says they care about their community, that they want to get to know each other, that they’re willing to socialize that way. People who behave that way are building a community. They’re going to look out for your kids; they’re going to look out for your house. It’s a nice, safe way to celebrate something.” 5. Quiz the sellers What problems are they aware of that the...

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