Rent to Own Homes in Minneapolis
Minneapolis is known for its scenic Mississippi River location as well as its dynamic art scene, plentiful lakes, Mall of America and its Twin Cities pairing with St. Paul. It’s also filled with broad-minded leaders, thriving corporations and an energetic, diverse population that makes it the largest city in Minnesota.
Minneapolis’ University of Minnesota campus draws students and professors from around the world and was named one of the top 10 educational employers in the country by Forbes magazine. Its Minneapolis Public Schools system educates 35,356 students, serves a free breakfast to them every school day and operates a number of innovative programs. As part of the Hennepin County Library system, the Minneapolis Public Library is ranked as one of the top 10 libraries in the United States, and even the Minneapolis City Council acts on forward-thinking measures like the Carbon Neutral Cities Alliance. Together, the city’s natural features and dynamic institutions create a city that is uniquely Minneapolis.
Buying a Home in Minneapolis
Minneapolis’ real estate market is strong, and the average home price has increased 5.1 percent over the last year to $275,028. The number of home sales remained fairly stable during that same time period, but the number of new listings increased 2.2 percent. Currently, the market has only enough homes for sale to last 2.8 months, which is far below the national average of 5.3 months. That lack of inventory may play a part in the fact that buyers pay 98.2 percent of the original asking price when negotiating a purchase.
Popular Neighborhoods in Minneapolis
The city’s unique location, historic industrial areas and quaint suburbs offer all the neighborhood variety a local could want. The North Loop, or Warehouse District, is popular with singles and young professionals, beloved for its retro mid-rise condo buildings, diverse cultural activities and proximity to baseball’s Target Field. More elegant living is found in Calhoun Isles, where lake beaches feature prominently. With a median age of 39 and net worth of $720,871, Calhoun Isles residents enjoy upscale homes and its Uptown district’s nightlife. For a broader mix of residents, many locals prefer the historic architecture and all-age appeal of the University District, while families enjoy the affordability, light rail access and mature trees of the Longfellow neighborhood.
Buying vs. Rent to Own Homes
Finding and financing the home of your dreams can be difficult, particularly if you have a damaged credit rating or debts that are too high to qualify for a mortgage. Renting to own a home can offer an alternative, often using relaxed financing criteria and providing the renter/buyer a mechanism for accumulating a stronger downpayment. It also provides extra time for the buyer to clean up financial issues over the few years of the contract while enjoying a locked-in price for the home.
Cost of Living in Minneapolis
In spite of Minneapolis’ status as a big city, it actually provides a relatively average cost of living. Here, residents will pay about 8 percent more for living expenses than the national average, but they’ll pay 2 percent less than they would if they lived in Chicago. Part of the city’s expense is due to housing, which costs 12 percent more than the national average. Groceries are a little more than 7 percent greater than the national average, but heatlhcare and utilities are just 3 percent more expensive.
Minneapolis’ 497,207 residents enjoy first-rate entertainment, dining, recreation and extremely low 3.7 percent unemployment. This bustling city is alluring to many, creating a robust real estate market that is favorable to sellers, but accessible to buyers. Median home prices are only 2 percent higher than the national average, although overall housing costs are about 12 percent higher here. As a result, cost of living is slightly more expensive than in other parts of the country, but they are more affordable than several other large cities.
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
Lease-purchase programs offer sellers more certainty than traditional rent to buy because buyers are contractually obligated to buy the condo, townhouse or house by the end of the lease term. Normally, rent to own by owner means the buyer has the option to buy and the seller has the obligation to sell.
Lease-options are more convenient for buyers. However, buyers and sellers may work out lease to purchase deals for houses and other properties when the seller is overlooking a bad credit score or a small option fee. The requirement for buyers to purchase properties makes sellers feel more comfortable leasing with no credit check because they don’t have to worry about whether buyers will opt out.
If you’re interested in looking for apartments for lease option, check out our free listings by searching for properties near me. We showcase more than just rent to own. Use our site to find cheap foreclosed homes or owner financing.
Reported Annual Crime In Minneapolis