Some of the Benefits of Rent to Own Homes
Both the buyers and sellers benefit from rent to own homes.By choosing rent to own there are many positive achievements that come in. Explained the following paragraphs are some of the advantages of rent to own homes.
The first advantage that the buyer gets from rent to own homes is an opportunity to know the condition of the property. Potential purchasers will have an opportunity to access the improvements that need to be done in the house.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.
The other benefit is that the price of the property remains the same throughout the contract.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. The terms of sale of property do not change no matter the case. After agreement, no one has control over any circumstance like fluctuation in the value of homes.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. The buyer is not supposed to pay any down payment for the property he intends to buy. Rental deposits will be expected to be paid by the renter.Where you find no tax amount required rent insurance will be payable which is cheaper than homeowner 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.A potential buyer is already available. 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 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 seller may not enjoy the benefits because of the slow modes of payment. Another negativity of the process is that the seller cannot be fully assured that the renter is the ultimate buyer.Also when the property value goes up the seller will stand to lose because he cannot change the agreement.