Rent or Own? Smart Questions to AskFebruary 25, 2014
Rent or own? Most people find themselves weighing these options at some point in their lives. The question of home ownership versus renting a home is complicated by tax law, tax breaks and mortgage companies, which aren’t always easy to navigate, and might put qualified candidates for home ownership off. But with the help of a professional real estate agent to guide you, home ownership might be a next step that’s logical for you and your family. Here are some solid questions to start off your conversation with a certified broker or real estate professional:
- Who will tend the property and pay for the routine maintenance?
- Who will be paying for any major repairs?
- What will the cost of setting up and managing an escrow account for the portion of rent set aside for the down payment?
- If the buyers change their mind, what’s it going to cost you to put the property back on the market?
- How much of the rent is going towards the down payment?
- What happens if you change your mind? How locked in are you?
- What would it cost you to get out of the deal? Will you get your binder/good faith money back?
- How long would it take you to accumulate enough of a down payment that will allow you to qualify for a mortgage?
Related: Six Tips for Buying a House