As the Colorado market continues to increase in price so are rental properties. IHOMESCOLORADO is here to help you if you find yourself being forced to move out of your rental into a situation that you had initially not planned for nor possibly wanted.
Undoubtedly, house prices are going up and homes are selling quickly. According to REColorado in their monthly statistics published June 3rd 2015 “Sustained increases in demand kept Denver home sales in positive territory in May, with the number of sold listings rising for the fourth consecutive month. The number of homes sold in May reached 4,953, a 12 percent month-over-month increase and a 13 percent decrease year over year. Year-to-date, the cumulative number of sold listings is consistent with levels seen at this time last year.” With a high demand for properties come a lower supply of properties to fulfill those demands. This causes rental prices to increase as demand grows putting renters in a position they had not initially planned for nor possibly wanted such as paying a premium for rent or having to downgrade because they can no longer afford to pay the rent.
Image source: Alex via Flickr, creative commons license 2.0
We are here to help and we've outlined the benefits of how selling a property to a renter can profit the renter and home owner. The first thing to keep in mind is that home prices are going up which means the home owner now has the opportunity to possibly make money on their property. Secondly, the home owner will not have to go through the initial selling process of listing their home, marketing it and waiting for offers to come in. We can work on behalf of both parties to come up with a price that will satisfy both parties' needs as well promptly answer and resolve any questions or concerns that may arise all the while respecting the emotions of each party.
The following are things we can do for our clients. Based on the benefits mentioned above we can negotiate a lower commission to aid the renter in buying the property. Another thing that we are able to do for a renter who may live in an apartment home owned by a rental company is pair that renter with a homeowner who can't sell their home for market value or do not wish to sell their home and are willing to work with the renter on a rent price that works for both parties. There are also properties that are called rent to own properties. Rent to own properties are great for renters who were not prepared to buy a home (may not have a down payment or may need time to work on improving their credit) because a portion of their rent goes towards the down payment of that house. Rent to own properties also help the homeowner in situations where they were unable to sell their home or needed some more income before the actual sale.
Lenders are also a large part of the equation. Partnering with the right lender can make all the difference between getting the house or not. There are lenders who specialize in helping renters who were not prepared to buy by working with them despite a low credit score or can help them find down payment assistance programs or with tax credits that can help them increase income eligibility. Two examples of these lenders are: Bobby with Mountain West Financial who is able to work with low income or credit challenge buyers and Guild Mortgage who specializes in CHFA(Colorado Housing and Finance Authority) loans.
Every situation is different and will require a specific and strategic plan of action for home buying. The tips above are very general and can will vary depending on each individual situation. Please contact iHOMESCOLORADO to learn what specific strategy for home ownership or renting to own can help you.