Rent to Own Homes in Stockton
Stockton, named for Commodore Robert F. Stockton, is one of the California Central Valley’s largest cities and home to an important deep-water inland port. With its Delta location and numerous streams and man-made lakes, water plays a key role in Stockton’s considerable industry and recreation.
The region’s San Joaquin River reaches inland to end at downtown Stockton and historic Weber Point. There, locals can catch a professional hockey game at Stockton Arena or cheer on minor league baseball players at Banner Island Ballpark. Downtown is also the site of Stockton City Council meetings and a variety of businesses. Away from the city center, residents can explore the Haggin Museum, tour nearby wineries and study at University of the Pacific, California’s oldest chartered university.
Buying a Home in Stockton
Stockton’s housing market was hit hard by the recession, but it is steadily recovering. The city’s median home prices experienced their biggest annual increase in 2014, and new home sales increased almost 10 percent. Foreclosures dropped 38 percent from 2014 to 2015. Even with this resurgence, Stockton homes are relatively affordable for California. The average price of a home sold in Stockton is $211,577, far less expensive than the $302,475 for the average selling price of a U.S. home and the $574,437 of a California home.
Popular Neighborhoods in Stockton
Stockton has a diverse offering of neighborhoods, from established areas near the downtown core to new developments to the city’s north. Professionals, college students, recent graduates and professors often prefer the Pacific and Country Club neighborhoods near University of the Pacific and the Miracle Mile. Homes are a mature mix of grand architecture and quaint bungalows, and provide easy access to most of the city’s dining and cultural hot spots. Brookside features upscale homes, a country club and access to the coveted Lincoln School District, and the slightly older Quail Lakes is filled with attractive lakefront properties. Those looking for newer homes often enjoy the north’s Spanos Park or the developments near rural Morada.
Buying vs. Rent to Own Homes
Even with Stockton’s more affordable housing, buying a California home can be challenging. Renting to own a home may be a comfortable alternative. In these arrangements, buyers agree to purchase the home at the end of the contract period, but they pay the price negotiated at today’s current rates. Instead of paying a hefty downpayment right away, buyers usually pay a smaller option fee. Rent is often higher than normal, but that extra rent is applied to the downpayment that is due at the end of the contract period.
Cost of Living in Stockton
Buying all of life’s essentials in Stockton is 6 percent higher than the national average. Housing here is actually 1 percent cheaper than the norm, but all other items are slightly more expensive. Stockton healthcare costs are 7 percent, utilities 8 percent, transportation 10 percent and groceries 14 percent more expensive than the national average. Comparisons to other Central Valley towns vary. For instance, Stockton’s rent prices are 30 percent lower than in nearby Sacramento, but dining costs are 42 percent higher.
Fed by the California Delta waterways, Stockton has many selling points. Its active, diverse community offers a wide range of economical homes in many established and new neighborhoods. In fact, Stockton’s average home selling price is less than half the cost of the average California home and 30 percent cheaper than the average U.S. home. This affordable housing balances out some of Stockton’s higher food and transportation costs, creating a cost of living that’s slightly lower than the national average.
Rent to Own Realtors
Realtors have more experience with closings and real estate contracts than the typical buyer or seller, but not many of them want to work with rent to own deals. A commission from the sale of a home is much larger than the commission a realtor will receive from rent for the first few years of a lease-option deal.
Instead, visit title companies to make sure the property is eligible for rent to own, consult with a lawyer to ensure that the contract benefits you and meet with a mortgage broker to find out when the buyer will be ready to close on the home.
About Our Listings
Listing properties for traditional sale eliminates a big chunk of the buyer market. People with bad credit are left out of the traditional home buying process. Nonetheless, buyers who don’t qualify for mortgages are still in the market for apartments and houses.
Rent to own by owner programs with no credit check are an easy way for a seller to start earning money from their townhouse or condo in a market that isn’t viable, which appeals to new groups of buyers.
Through rent to buy and lease to purchase, sellers rent a property to potential buyers for a set lease term. During which, the seller earns profit through the rent buyers pay as a tenants. At the end of the lease, the buyer has the option to buy the property, or if they signed a lease-purchase agreement, they must buy it.
With a little patience, sellers can make rent money and the true value of their home from its eventual sale. Which is better than selling the home cheap and competing with bank-owned foreclosed homes that sell for less than market value.
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