Ann Arbor Township Michigan Real Estate is in higher demand than surrounding areas due to all of the area’s amenities.

Stable jobs and education thanks to the University of Michigan. 10 great sports. Fine dining, nightlife in the form of jazz bars, farmers markets, in short, a sense of city life that still recalls its small Midwestern roots.

Due to its desirable location, many people do not like to rent, but rent properties in Ann Arbor, Michigan.

Rent-to-own, also called a lease option, is one of the growing ways to sell and buy property in Michigan’s sluggish economy.

Sellers get someone to take over the monthly mortgage payment, and buyers get the feeling of true home ownership because they have an option they can exercise to buy the house (or condo or apartment).

Ann Arbor Michigan Township real estate varies widely in price. Certain areas, like the Angell neighborhood, are the most expensive, with a median sales price of $663,000.

However, this is certainly not indicative of Ann Arbor real estate as a whole. The median price of a home sold in 2006 in the Ann Arbor school district was $291,000.

Clearly, real estate in Ann Arbor Township Michigan can vary significantly depending on your location, even though Ann Arbor itself is only 25 square miles.

If you don’t have a large down payment on a house, condo, or apartment in Ann Arbor, one solution is to look at rent-to-own properties in Ann Arbor, Michigan.

There are advantages to both sellers and buyers of rent-to-own properties in Ann Arbor, Michigan.

For buyers, they are:

• Smaller down payment
• Part of your monthly payment goes toward the purchase price of your home when you exercise the option. This money is called “rental credits.” This means you are building equity and not just throwing money away for rent.
• Get to live in the home before you decide to buy. Yes, you certainly don’t have to exercise your option. If it turns out that you don’t want to buy the house after all, you don’t have to.
• Potential valuation of the property. If the house, condo, or apartment increases in value, you can capture that appreciation by exercising the option because the agreed purchase price is negotiated in advance.
• If the property depreciates, you can choose not to exercise the option.
• If you have bad credit and can’t get a traditional bank loan, rent-to-own properties in Ann Arbor Michigan are a great way to achieve homeownership while rebuilding your credit.

For sellers, the benefits include:

• It increases your chances of selling your home because you are tapping into a whole segment of the market that may not be able to get traditional bank financing. Hey, let’s be real, bad things can happen to good people and someone who took a couple of hits to their credit a few years ago may be a responsible person who can easily make the monthly mortgage payments and afford to buy their home at a discount. Rent with option to buy.
• It relieves you of the monthly mortgage burden. Are you currently paying two mortgages? Do you need to move due to a job transfer? Has the medical emergency in the family put you in a cash crunch? Sell ​​your place fast as one of Ann Arbor Michigan rent to own properties.
• Sale price closest to fair market value. In today’s real estate market, lowering the sales price seems to be the name of the game. However, when you sell with a lease option, you’ll be able to get higher sales prices because, as mentioned above, your buyer often can’t get traditional bank financing…or doesn’t want the hassle and therefore will let you pay to. the FMV for your home.
• Worried about “tenants” vandalizing your home? Don’t worry. People who rent to own Ann Arbor Michigan properties are not true tenants. Since they have an option to purchase the property and have paid some up-front fees called “option consideration,” they treat the house more like an owner, as they may be buying it!
• You can keep your property income tax deductions during the option period! (Talk to your Accountant).

Ann Arbor Township Michigan real estate can be achieved with a rent-to-own, and real estate investors can help facilitate the transaction.

There are downsides if you get it wrong, whether you’re a buyer or a seller. As an example, if the contract is not made correctly, and you are the buyer and want to buy the property by exercising the option, say because the property appreciated in value during the consideration period, the seller can refuse and claim that they do not have to sell it after all.

If the contracts are done correctly, both the seller and the buyer are protected.

Real estate investors like the folks on our team have made hundreds of rental options in Michigan over the past few years. We use our own contracts, our own team of mortgage brokers and real estate attorneys, and we do the job right so both seller and buyer benefit from their deal.

In addition, through our network of contacts, we are in constant contact with tenant-buyers and people who want to sell on a rent-to-own basis. So if you are a seller looking for a buyer, or a buyer looking for rent-to-own properties in Ann Arbor, Michigan, come visit us to see if we can find you.