Blog :: 04-2018

Rent With an Option to Purchase?

We have been asked by clients about the possibility of renting with an option to purchase.  Sometimes, the potential buyers have an upcoming life event that will allow them to make a purchase in the next few years, but they have found their dream home and want to tie it down and live in it now.   

There are many ways to structure such a transaction but the most common one works like this: The tenant/buyer enters into a contract at a set price and puts down a non-refundable deposit (amounts can vary widely) and a portion of the rent goes towards the purchase price should the tenant/buyer decide to purchase within the set timeframe.

Should the tenant decide not to close within the specified time, they lose their deposit and the transaction is simply a lease. Should they decide to purchase at anytime during the lease term, they have been building up equity in the house and pay the balance due upon closing. This can be a creative way for both  buyer and seller to reach their goals.

We have successfully completed transactions using this structure. Give us a call if you are looking for other creative financing ideas!

    Comments

    1. No comments. Be the first to comment.

    Swimming Pools: A Good Investment?

    Does a swimming pool increase your home’s selling price?

    The simple answer is that most buyers who want pools don’t want to add their full value to the purchase price. Other buyers may not like the pool you have built and many buyers don’t want the expense of maintaining a pool or the potential liability.

    Only add a pool area to your home to enjoy yourself, not to increase your home’s eventual resale value  it is very difficult to recoup the $40,000 to $75,000 cost of a Gunite pool.

    There are exceptions. Buyers for luxury properties often expect a pool and an attractive one can make your house more marketable to the high end market. If you rent your home over the summer potential tenants are often willing to pay double for a home with a pool. The incremental rent could recoup your cost over several years.

    And, if you are thinking of resale value, never add an indoor pool. These can actually be a deterrent to sale because of moisture and humidity, not to mention the chlorine smell.

      Comments

      1. No comments. Be the first to comment.

      Five Mistakes When Re-Doing a Bathroom

      Nothing is worse than a medicine cabinet that is so packed that things fall out each time you open the door or lighting that doesn’t allow you to check makeup. If you’re planning on a bathroom redo, here are some things to avoid:

      Neglecting Storage - Explore recessed wall cabinets and shower shelves. When purchasing a vanity, make sure there is plenty of storage for hair dryers and toiletries, and plenty of counter space.

      Overlooking Lighting - People often forget they need multiple lighting sources and install wall sconces on each side of a vanity. Try to incorporate both decorative and task lighting.

      Choosing Slippery Tiles - Using cool decorative tiles that are not made for getting wet is a mistake; they are easy to slip on and can lead to injuries. Make sure your tiles are designed for bathroom floors.

      Not Planning Electrical Components - Planning outlets needs to be done very early in the process.

      Not Using an Appropriate Fan - We have all walked into a bathroom where the ventilation fan sounds like a plane taking off. For a few dollars more, purchase a quiet alternative.

      A well-organized bathroom can be truly life changing.

        Comments

        1. No comments. Be the first to comment.

        Spring Chores - Ugh!

        Last month, we set our clocks ahead and everyone changed the batteries in smoke and carbon monoxide detectors, right?  Good - your life can depend on this.

        Some other tasks that can save your life or save you a lot of money in repair costs should be done yearly at a minimum; here are a few tasks that are best done in the spring and fall:

        GFCI outlets. Usually found in baths, kitchens, garages, basements, and outdoors. They have a “test” and a “reset” button. Test first, then reset – if your outlet won’t reset, call an electrician.

        Dryer vents. Open the vent outside and look for lint; clean out what you can.

        Hot water heater. Drain the hot water heater and test the pressure relief value (and the one on your boiler if you have one).

        Furnace. Change your furnace filters if you have forced air heat.

        It’s also a good time to clean refrigerator coils and their drip pans, re-seal all your grout, and clean the gutters and downspouts.

        And please call a professional should you need one.

          Comments

          1. No comments. Be the first to comment.

          Roof Options

          A solid roof is worth its weight in shingles when selling a home.  One of the first questions buyers ask about their potential purchase is the age of the roof.  So if you are considering selling soon, you may want to consider upgrading your roof if it is at the end of its natural life.

          A shingle roof may last 20+ years, depending on whether it was kept clear of debris. Cedar was once the go to standard in roof tile but the older cedar tree stock is depleted and the available younger wood does not last as long. It is not worth the price. There are multiple terrific ‘fake’ cedar and other synthetic roof tiles on the market.  Google it and you’ll find a ton of options. Metal roofs in general are longer lasting than standard roofing tiles, around 50 years.  An added benefit is they are fire resistant and recyclable.

          There is a combination of tar and gravel that is long lasting, but it is a very heavy option that would require weight bearing studies of your home.

          Clay, concrete and slate tiles, which are the most expensive option, may last up to 100 years.

            Comments

            1. No comments. Be the first to comment.