Rent to Own Homes in Birmingham
The below results are primarily rent to own homes in Jefferson County, AL:
With a population of 212,237, Birmingham is the biggest city in Alabama, and its Birmingham City Schools district is the fourth largest in the state. It is also part of the Birmingham metro area that is home to 1.1 million residents. The city is known for its many universities, financial and insurance companies and vibrant art and entertainment options. Its Civil Rights District celebrates the city’s important role in the United States’ Civil Rights Movement, and its downtown thrives with the Uptown entertainment district and the family-friendly Birmingham Public Library.
The Birmingham area is also known for its lively, fun-filled festivals. Its Sidewalk Film Festival and Taste of 4th Avenue Jazz Festival are legendary. From the Southern Heritage Festival to the Greater Birmingham Festival of Hope, Birmingham celebrates its history, culture and heritage in creative and rousing ways.
Buying a Home in Birmingham
Birmingham’s real estate market is strong, recording 1,295 home sales in one month. That figure represents a 4.8 percent jump over the previous year’s sales, and it is the best sales figure recorded since the housing downturn in 2007. Building permits for new home construction decreased 31.5 percent, but new homes remain a notable 10 percent portion of local home sales. Existing homes account for 85 percent of all home sales, and 4 percent of all the homes sold in the area were condominiums. Meanwhile, the median sales price of Birmingham homes rose 10.2 percent over the last year to $191,500.
Popular Neighborhoods in Birmingham
The historic Forest Park neighborhood is a central city favorite of families, singles and couples who are looking for upscale living in turn-of-the-century homes and the ability to walk to some of the city’s best restaurants and shops. The average price of a home sold in Forest Park is $336,643. Neighboring Highland Park is also known for its historic homes and churches and was recently named “America’s Great Place” by the American Planning Association. Families and established professionals also appreciate Five Points South for its community spirit, excellent restaurants, superb entertainment and proximity to University of Alabama-Birmingham. The neighborhood was named the best place in town to people-watch, and its homes record an average selling price of $283,915.
Buying vs. Rent to Own Homes
Home prices are rising quickly in Birmingham, and it’s a great idea to buy a home before prices increase more. Home buyers who want to ease into their purchase but take advantage of affordable home prices have a good alternative in rent-to-own arrangements. These arrangements offer less stringent financial requirements and provide a more formal, yet simplified way to accumulate a down payment. In addition, since these rent-to-own contracts usually cover a period of one to three years, there’s time for buyers to improve their credit ratings before a mortgage is needed.
Cost of Living in Birmingham
Birmingham residents appreciate the city’s low overall cost of living that is 22 percent below the national average. In fact, nearly every single living essential is less expensive in Birmingham than in other cities. Birmingham residents spend 8 percent less on groceries, 22 percent less on healthcare and a whopping 49 percent less on housing than the national average. Residents will even save on transportation costs, which are 14 percent lower than average. The only living expenses above the national average are utilities, costing 3 percent more.
A significant center of manufacturing, higher education and healthcare, Birmingham is appealing for a wide variety of reasons. It treasures some of its most historic homes near the downtown core in the Forest Park, Highland Park and Redmont Park neighborhoods, and it offers a wide range of affordable homes throughout the city. These homes are about half the cost of the national average, leading to an overall cost of living in Birmingham that is exceedingly affordable.
Rent to Own Realtors
An agent serves as a protection for both the buyer and the seller. They can save the buyer and seller a lot of time and money, which could offset the realtor’s commission.
However, not many realtors are interested in helping with lease-options. They make a minimal profit off of the lease portion of the deal, and the profit from the purchase is several years down the line and isn’t guaranteed.
Instead, protect yourself by communicating with lawyers, title agents and mortgage lenders to ensure that your rent to own deal works smoothly.
About Our Listings
Rent to Own Labs offers free listings for rent to own by owner, foreclosed homes and owner financed properties. Start looking for apartments or houses near me with the Rent to Own Labs search function.
These programs are a great way to buy a condo or townhouse if you have bad credit. In fact, lease purchase and rent to buy programs usually offer cheap homes with no credit check. Just make sure you look at your lease to purchase agreement to understand whether you have the option or obligation to buy the home you’re looking at. Lease-purchase agreements require the buyer to purchase by the end of the lease term, while lease-option agreements give the buyer the option to buy.