What You Gain from of Rent to Own Homes
Renters and sellers have their share in the benefits if rent to own homes.Rent to own process of selling the property has quite some advantages. Some of the advantages are as explained in the paragraphs below.
Getting first-hand information is the about the home that he wants to buy is the first benefit the buyer gets from rent to own contracts. Buyers will be able to determine the kind of adjustments or improvements that may be required.Upon discovering that the condition of the home is unbearable the buyer may end the plans of acquisition. By occupying the house the potential buyer gets a rough idea of how much the repairs will cost. The buyers will have an opportunity of familiarizing themselves with the surrounding areas.
Another advantage of rent to own homes is that the purchase price is fixed from the beginning.When the terms of sale are constant it means that both the seller and the purchaser do not have the mandate to change anything about it. No matter what the terms are no one can make changes. Once the contract has been entered into the buyer has to comply even when there is depreciation.The contract benefits the seller because the amount he receives does not change even if the value of his property declines.
Rent to own homes are cheaper both to sellers and buyers. For instance, no down payment is required to be paid by renters. Rental deposits will be expected to be paid by the renter.In cases where no tax is required rent insurance will be paid which is cheaper than homeowners insurance. Where there is no tax amount to be paid the buyer can save money to buy the house.The landlord does not need to incur the cost of advertising their property.The seller has somebody who can purchase the home. Rent to own homes are also cheaper to seller because they eliminate real estate agents. Property agents have to be paid a percentage of the proceeds from the sale; this can be avoided with rent to own method.
To close with everything on earth has a positive and a negative effect. The renter will lose everything that he has paid for if he decides to discontinue the agreement. The buyer does not have any rights on the property until they have purchased. The price being fixed to the terms of the agreement the renter may be at lose when the value depreciates. To the seller the income comes in slowly because the payments are not once off. Being unable to predict the likelihood of the tenant buying the home is another con.Also when the property value goes up the seller will stand to lose because he cannot change the agreement.