Ever wondered why renting to own is becoming so popular, and if you should consider it for your next property?
Well, according to a 2021 study by Harvard University, the number of single-family homes for sale in the U.S. at the beginning of 2021 was the lowest in roughly 40 years, with just 870,000 units available.
To buy the home of your dreams, you need to act quickly. But if you’re trying to buy a home with bad credit, you’re in for a slow, frustrating journey. Why not consider renting to own the property of your dreams?
You don’t need to make a down payment or have a credit score, and the application process is fast.
But before you launch yourself into the rent to own homes market, what are the dos and don’ts of leasing to own a home in Texas?
The Dos and Don’ts of Renting to Own In Texas
Being successful in the real estate sector is all about being informed – this includes buyers and rent to owners. Without accessing information about the local market in Texas, you’ll be unable to gauge the basic requirements.
Operating exclusively in Houston, Dallas, Fort Worth, San Antonio, Austin, and Corpus Christi, we ensure that we know all about the median prices, the market movements, and more, in all these locations.
Here are our top dos and don’ts.
Don’t Just Agree on Any Rental Contract
Let’s actually start with a don’t. The majority of those looking at homes for lease do little to no negotiating.
Most accept the rental terms at face value and sign on the dotted line.
You shut yourself off from accessing a better deal without investigating your options.
Do Consult Experts and Set a Budget
Make sure to sit down with the real estate agent and the homeowner with a list of requirements and responsibilities that should even the playing field.
Be aware of how much of a monthly repayment you can comfortably afford. While rent-to-own contracts aren’t tied to interest rates, you should still plan for unexpected situations, such as a pandemic.
If given a chance, always try to reach out to an expert who will ensure you don’t trip into any shortfalls.
Don’t Skip Research
Not planning is planning to fail and in this case, making a poor rent-to-own decision when purchasing property in Texas.
We take for granted that those we’re negotiating with are unbiased and nice. But sometimes this is, unfortunately, not true. So by doing research you’ll know if you’re being taken for a ride.
Unless you’ve hired a professional to assist, you will need to do the research yourself.
Do Check the Market
The best tool is information when looking to rent to own in any market, including Texas.
Your first port of call is to find out whether it is a buyer’s or seller’s market.
You will have a little more negotiating power if it is a buyer’s market, which is when there are too many homes on the market.
Currently, the trend in Texas is that it is a seller’s market. According to the Emerging Trends in Real Estate 2022 report from PwC and the Land Institute, Texas is home to 4 of the top 12 markets with the best home building prospects.
What this indicates is professionals and young families are looking to move into the state. And to meet this demand, developers are creating new building projects.
If you are interested in a region, you can utilize free tools like City-Data.com, which will break down several factors for the area you’re interested in buying a new home.
Don’t Skim the Contract
Often buyers will rush in to sign on the dotted line. After all, you want to start your new adventure for yourself and your family.
But skim-reading and assuming definitions in said contracts can land you in hot water down the line.
If they insist you sign the contract at the meeting, walk away.
Always read your contracts, and reread them over and over again.
If you’re unsure of the wording, always ask for clarification from the owner or other party involved in the agreement. Being on the same page is key to moving negotiations forward.
If you’re unsatisfied with the answer provided, you should reach out to a professional to highlight their issues with a contract. A good lawyer will find any faults in a contract.
The details matter when you’re negotiating a real estate deal. This is one of the most significant and critical contractual agreements you’ll ever sign. READ IT OVER!
Do Contract a Third Party Inspector
While the institution funding the purchase or realtor will send out an inspector to list issues with the home, these individuals can be biased towards their employer.
It’s always in your best interest to have a professional on your side to give feedback on any issues straight to you.
This also includes hiring an appreciator to clarify pricing on the property.
Don’t Rely on The Buyer
Hiring your inspector and appreciator will guarantee that the information you’re tapping into is unfiltered. And as we mentioned, having information is key to making good decisions in any real estate deal.
Also, it will give you leverage to negotiate down the asking price if some issues or amendments are in your favor. An example will be stipulating that the current owner funds the correction projects.
With most rent-to-own home purchases, the buyer is liable for these projects.
Now that you know the dos and don’ts of Renting Own a Home in Texas, how do you find a broker willing to fund your dreams?
Contact Home Buyer Creators When Planning on Renting to Own!
Operating in six of the most lucrative cities in the lone star state, Home Buyer Creators will assist you in renting to own homes in:
- Fort Worth
- San Antonio
- And Corpus Christi
Contact us today to get started!