The past week I did my first lease purchase contract representing the buyer. I found it was a win/win situation for all parties involved. A lease purchase is when the buyer puts down a down payment to be used an option to buy a house. The buyer in turn agrees to make set monthly payments to the seller for a period of time agreed upon by both parties.
This can be beneficial in so many ways in this market. For the seller, it allows them to move out of their house and get into the new home they need or want. The seller is given a down payment that is non refundable.It is generally called an option fee. Thus if the buyer elects not to purchase the house by the specified end date they lose their deposit on the home. The seller then not only receives monthly rent payments to make the mortgage payment with, but a down payment to use toward the home they want to buy.
For the seller it can also open a window of opportunities in selling their home. With the average days a home is on the market being 145 in the Charlotte area the question looms for a lot of homeowners who are thinking of selling....Can I wait that long and possibly longer to sell my home? This opens a window of opportunity for the seller to expand the pool of possible buyers for the house.
For the buyer, it can be a big advantage. In my case the buyer was in a situation where they qualified for the hosue they wanted; but did not have enough of a down payment saved to purchase the house. This allowed them to get into the hosue they wanted and save up the difference they need to get the required down payment.
In other cases it can be a matter of getting the credit score up enough to qualify. I represented the seller on one where the buyer was 2 points away from qualifying for a mortgage.By allowing them to do a lease purchase my seller was able to make the move he needed for his job and the buyer were able to get into the house they wanted.....Four months later the buyers are happy home owners.
The buyer also has a guaranteed purchase price that they and the seller agree to in advance. This allows both parties to know exactly what the price and terms are going to be before they finalize the contract for the lease purchase. The seller benefits in that he does not have to renegotiate at the end of the lease purchase. The buyer is assured that if the house appreciates in value he can still buy at the agreed upon price.
A lease purchase may not be the right choice for everyone. But in those cases where you have exhausted all other options it may be a feasible option in today's housing market.
Dave diCecco
Realtor/Broker
www.davedicecco.com
Tuesday, April 6, 2010
Monday, April 5, 2010
Should I Buy Now or Continue To Rent?
I recently was reading an article that asked the same question. I hear a lot of people say they are not sure if it is advisable to buy now. Consider the first sentence of the article I read stated "The average home owner is worth 35 times more than the average renter". That is a large difference in net worth.
The market conditions and economy have scared a lot of people from experiencing the joy of home ownership. But you should be looking at the other side of the coin in this as well. Owning a home has a lot of benefits that renting does not provide. You can build equity in your home, You receive tax benefits and it becomes part of your retirement portfolio. But the best reason may be; the possibility of getting a better deal now then you ever could.
According to the National Association of Realtors, the affordability of homes is better now than it ever has been. They concluded that as of December 2009 homes were more affordable than any other point since they began tracking such numbers in 1970. The numbers mean that the median income family can afford more of the hiomes on the market today than ever before. So, it means your choices out there have grown and you do not have to settle for that one or two homes that were within your price range.
I recently had a client who was a first time buyer that went through this. They thought for what they wanted and where they wanted to live it would be like finding a needle in a haystack. When we got done with their wish list and area they wanted to live; they were astounshed to find there was over 30 homes that fit their criteria in their budget.
Mortgage rates are at historic lows. That coupled with the influx of short sale homes and foreclosures on the market has made it very affordable for people renting to experience home ownership.
Let's not forget that if you find a home and agree on terms by April 30, 2010 and close by June 30, 2010 you can receive up to a $8000.00 tax credit in addition.
Looking for that first home in the Charlotte area? Not sure what you can afford or if the home you want exists? Give me a call and let me put my 15+ years of sales expeince to work for you.
Dave diCecco
Realotr/Broker
www.davedicecco.com
The market conditions and economy have scared a lot of people from experiencing the joy of home ownership. But you should be looking at the other side of the coin in this as well. Owning a home has a lot of benefits that renting does not provide. You can build equity in your home, You receive tax benefits and it becomes part of your retirement portfolio. But the best reason may be; the possibility of getting a better deal now then you ever could.
According to the National Association of Realtors, the affordability of homes is better now than it ever has been. They concluded that as of December 2009 homes were more affordable than any other point since they began tracking such numbers in 1970. The numbers mean that the median income family can afford more of the hiomes on the market today than ever before. So, it means your choices out there have grown and you do not have to settle for that one or two homes that were within your price range.
I recently had a client who was a first time buyer that went through this. They thought for what they wanted and where they wanted to live it would be like finding a needle in a haystack. When we got done with their wish list and area they wanted to live; they were astounshed to find there was over 30 homes that fit their criteria in their budget.
Mortgage rates are at historic lows. That coupled with the influx of short sale homes and foreclosures on the market has made it very affordable for people renting to experience home ownership.
Let's not forget that if you find a home and agree on terms by April 30, 2010 and close by June 30, 2010 you can receive up to a $8000.00 tax credit in addition.
Looking for that first home in the Charlotte area? Not sure what you can afford or if the home you want exists? Give me a call and let me put my 15+ years of sales expeince to work for you.
Dave diCecco
Realotr/Broker
www.davedicecco.com
Friday, April 2, 2010
Easter Egg Hunt And Activities In Charlotte
As people in Charlotte are enjoying the summer weather a little early this year; there are many activities and egg hunts going on throughout Charlotte today (April 2 and tomorrow April 3) for the kids to enjoy. What better way to do an outdoor activity than enjoying the 80 + weather.
Today Charlotte hosts the annual Easter egg hunt in Freedom Park. Always a large event that attracts a lot of kids of all ages. The event is FREE. They have a variety of games and activities for the kids starting at 1:00p.m. and then the kids can join in the egg hunt starting at 2:30p.m.
A variety of other parks and recreation centers will also be holding easter egg hunts today and tomorrow. Some will require a small admission. You can visit the charlotte parks and recreation website for details on all the egg hunts going on in Charlotte today and tomorrow. There is 9 different ones happening throughout Charlotte. There web site
http://www.charmeck.org/Departments/Park+and%20Rec/Special%20Events/Easter%20Eggstravaganza.htm.
I hope everyone enjoys the beautiful weather we are having here in Charlotte right now. As someone pointed out to me yesterday looking at homes. This is such a beautiful place in spring with all the trees and flowers blooming.....
Dave diCecco
Realotr/Agent
www.davedicecco.com
Today Charlotte hosts the annual Easter egg hunt in Freedom Park. Always a large event that attracts a lot of kids of all ages. The event is FREE. They have a variety of games and activities for the kids starting at 1:00p.m. and then the kids can join in the egg hunt starting at 2:30p.m.
A variety of other parks and recreation centers will also be holding easter egg hunts today and tomorrow. Some will require a small admission. You can visit the charlotte parks and recreation website for details on all the egg hunts going on in Charlotte today and tomorrow. There is 9 different ones happening throughout Charlotte. There web site
http://www.charmeck.org/Departments/Park+and%20Rec/Special%20Events/Easter%20Eggstravaganza.htm.
I hope everyone enjoys the beautiful weather we are having here in Charlotte right now. As someone pointed out to me yesterday looking at homes. This is such a beautiful place in spring with all the trees and flowers blooming.....
Dave diCecco
Realotr/Agent
www.davedicecco.com
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