Renting a home is the perfect alternative to outright purchasing for those who are tightening their purse strings. Some people want to wait to buy a home until they’ve decided on the right location to settle. When the time to buy does come, however, many find themselves wishing they could just purchase the home they’re currently renting. That actually is an option in some cases. Follow these five steps to change your title from “renter” to “homeowner.”
Analyze
First off, it’s important to analyze the property by performing a comparative market analysis, or CMA. This will reveal how much your rental home is worth on the current market.
Pre-Approval
You’ll be dealing with your current landlord directly, but it’s still important to receive pre-approval for a mortgage from a local bank or lender. Once pre-approved, you can approach your landlord with a realistic proposition.
Speaking with Your Landlord
You’re currently renting the property, which means a landlord owns the property and oversees everything. You’ll need to approach your landlord with your desire to purchase the home. They may be willing to negotiate, but they may also be hesitant to do so. If they’re adamant about not selling, you may need to accept defeat and move elsewhere.
Rent-to-Own
Entering into a rent-to-own agreement could be the right option if your landlord isn’t willing to sell the house outright. You’ll most likely require a lawyer, though, as rent-to-own contracts can be tricky to navigate. Bring in both a lawyer and a real estate agent to discuss this possibility with your current landlord.
Real Estate Agency
You may have a friendly relationship with your landlord, but purchasing a home is an entirely different market from renting. An experienced real estate agent can help iron out the details and navigate the contracts with your landlord. This leaves your relationship with your landlord uncomplicated by the new situation.
