Liz B. Real Estate

I don’t know how many times I’ve heard this question in the last few months.

What about rent/lease with option?

Unfortunately with the way the economy has been the last few years most people can not afford or get pre-approved to buy a home. So they think the next best thing – rent with option. Wrong! I go over it so often that I decided to put if out there and then start directing people here to read about it.

What you think when you hear “Rent with Option”

Rent to own. You go to your local rental shop, sign a few paper and walk away with a big screen tv. Make regular monthly payments and in 12 months you own it.

It must work the same way with a house right. I’m renting it, so I sign the lease and state I want to buy it in a few years, because I have rent with option my monthly payments must go toward purchasing it instead of going to the owner like any regular rental payment does. Wrong!

What “Rent with Option” really means

Renting with option is a purchase agreement. Not only do you sign the lease agreement but you also sign a Lease with Option to purchase agreement and a Residential Sales Contract.

The lease is just like any other lease: you agree to maintain the property, pay the rent, live there with out disturbance, ect.

The Residential Sales Contract is just like any other: you agree on an amount, a settlement date, terms of tittle, ect.

In the Lease with option you agree to the purchase period i.e. how long until you actually buy the house. You agree to an option consideration or “Option Fee” i.e. an addition non-refundable dollar amount placed on top of your regular monthly payment (usually a few hundred). This will be held by the owner and credited to the buyer at time of purchase for down payment or closing costs. You agree to the Purchase price, regardless of the property value at time of purchase. So if the market drops (gee when has that happened) the value of the house will no longer be what you agreed to pay for it. Lastly you agree to obtain financing before the end of the lease with option term.

In the end there is considerable risk to renting with option and in the long run it would be smarter to take the extra three hundred a month you would have spent on option and put it in an interest baring account and save it up on your own. You can purchase a home that you haven’t warn and torn on for the last few years and is selling for current market value .

I hope this has helped. Feel free to add your thoughts and any additional feedback.

Create ‘curb appeal’ with easy home projects

(ARA) – Whether you’re selling your home and want the best price, or you just want to be the envy of the neighborhood, creating “curb appeal” can be very rewarding. And you’re confident you know what constitutes great curb appeal – siding, windows, doors and a lawn that are all in good shape. But is that all you have to think about when it comes to curb appeal?

Not so, says Gordon Blickle of Gardner-Gibson, a manufacturer of driveway, brick and patio sealers. “Driveways and sidewalks are the entryways to the home,” he notes. “If they’re in great shape, you’ve got a strong first impression. If not — you’ve said a lot about the quality of the home.”

Unfortunately, driveways are often overlooked, spoiling an otherwise manicured landscape. Unless the drive is severely cracked, crumbling or poses a safety hazard, there’s no need to spend thousands on removing and replacing it. There are easier ways to makeover a tired driveway and boost the curb appeal of a home.

Beautify your blacktop

Don’t let problems go unaddressed until it’s too late. Old pavement left untreated will crack and crumble, becoming an expensive replacement. But a new coat of driveway sealer can restore it to like-new beauty. Refresh old, worn blacktop driveways and fill small cracks with fast-drying Black Jack Ultra-Maxx 1000, a flexible, long-lasting filler and sealer with a 10-year guarantee.

Showcase your home at night

Low-voltage or solar landscape lighting can create a softly lit path to border the driveway. In addition to creating a pretty landscaping effect, the lighting can improve visibility and decrease the chances someone will accidentally drive onto the lawn.

Make walkways more welcome

Stains on sidewalks and entries from dirt, mold, tree sap, and other outdoor invaders create an unattractive first impression. Clean the walk with an outdoor cleaner like Driveway Kleen, a garden-safe spray solution that attaches to a garden hose. To protect stains from coming back, coat the sidewalk and adjacent pavers or edgers with Krystal Brilliance, a waterbased clear acrylic sealer.

Add greenery to your scenery

Instead of having to keep the edge of the lawn trimmed against the driveway, create a “buffer” strip with a decorative rock garden or plant flowers along the path to create an inviting drive up to the home. If the driveway is shared with a neighbor, plant shrubs and flowers between them to create a small privacy wall.

Border on amazing

Edge the driveway with pavers in colors complementary to the home and pavement. Use pavers in different shapes and sizes to create an interesting focal point and frame the driveway.

“Consider your front yard the ‘arms’ that welcome visitors into a home,” says Blickle. “Without a warm welcome, guests and potential buyers may just keep walking.”

For more information and ideas on how to protect driveways from the elements, visit www.gardner-gibson.com.

Courtesy of ARAcontent

Here are the basic steps to walk you through a real estate short sale. In case you’re new, a real estate short sale occurs when you attempt to negotiate a discount on the mortgage amount of a house you are trying to buy. Usually the property will be in foreclosure and will have no equity. Many times the mortgage amount will be higher than the property is worth, so you negotiate with the bank to accept less than the full mortgage amount. When work … Read More

via Real Estate Short Sale