Thread: Help please

If they buy the house next year then you will probably not owe a commission.

There are more important questions you need to ask.

What will change in the next year to enable these people to buy the house when they can't buy it now?

If they can't get a loan now, how will they get a loan next year?

What is their credit score?

Do they have down payment money?

If they think they can apply the rent paid to you as a down payment they are wrong. The only amount of rent that can be applied to the purchase is the amount paid over and above the typical going rate for rent in your are. ie. If the typical rent for your house is $1,000 a month and they pay you $1,000 a month then they can apply none of it. If the typical rent is $1,000 a month and they pay $1,500 a month then they can apply $500 a month to the purchase. Are they willing to pay more than the going rate?

Make sure you talk to their lender and get the details of what they plan on doing. Then run the scenario by another lender to see if it is feasible.

Once they get into your house you are stuck with them. If they stop paying rent then you have to go through the eviction process which could take months or longer if they know how to work the system. Can you afford to let them live there for free during that time?

It will depend upon the listing agreement you have executed with the real estate brokerage.

For example, in Minnesota, our standard contract is 6 months after expiration. However the listing agent must provide the list of clients to the seller within 72 hours of the expiration of the listing contract.

Moral of the story: as a real estate investor of the last 10 years and a real estate agent and broker, I always encourage buyers and sellers to get representation.

Especially when involving a contract for deed or rent to own, there are numerous pitfalls and obstacles in that type of transaction. Having an experienced professional on your side to guide you to a successful closing is worth every penny in this tough real estate market.