It is common to pay full retail or slightly above current market prices for rent with rent to own homes.
Be sure you check out market rental amounts for your area, so you aren’t over paying by too much!
If the rent is high, try to offset it by getting high rent credits to offset the overall rental amount.
There are a few sources you can use online to get an IDEA of market rent for your area. These are just predictions though, accuracy would depend on more exact factors (home qualiity, changes in area, layout, etc).
Don’t Do It…
MANY times a seller will ask for a ridiculous amount of money in rent and sales price because they are offering you a rent to own.
Don’t waste your time renting a home like this!
Well, besides the obvious that you are overpaying, you also won’t be able to qualify the home for financing when it comes time to buy!
Remember, the sales price that you and the seller agree to should be competitive for your market.
If the home is too far overpriced you will have a problem when it comes time to appraise the home. If the appraisal is much lower than your contract price you would be unable to qualify for a high enough loan amount to cover the cost of the home.