What You Gain from of Rent to Own Homes
Both the buyers and sellers benefit from rent to own homes.There are so many benefits that will arise from deciding on rent to own way of selling homes. 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 first using the home before buying it will help the renter get familiar with what may need to be done about it. The conditions of the surrounding areas is another thing the potential buyer will learn.
Another advantage of rent to own homes is that the purchase price is fixed from the beginning.The price being fixed means that neither the buyer nor the seller can change the price. Whatever price is agreed upon from the start remains the same to the end. 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 price sensitive to seller as well as it is to buyers. There is no need for a down payment by the buyer. The renter only needs to pay the rental deposit agreed.In case there are no taxes to be paid rental insurance may apply which is cheaper than insurance for homeowners. When the renter is not required to pay the tax he/she gets a chance of making savings to make a home purchase.The landlord does not need to incur the cost of advertising their property.The seller already has a ready buyer of is home. Rent to own homes are also cheaper to seller because they eliminate real estate agents. Real estate agents are paid a commission which can be avoided when you engage a rent to owner buyer.
Lastly everything has its pro and cons. The renter will lose everything that he has paid for if he decides to discontinue the agreement. The renter does not have any rights over the property until he buys the home permanently. The fact that the price agreed does not change may be a blow to the buyer when the value of the home declines with time. The landlord does not enjoy full benefits of his property because the amount is paid in bits. The owner is disadvantaged because they are not certain that the renter will purchase the home.When the value appreciates with time the seller will suffer losses because he cannot make changes to what has been agreed upon.