What You Gain from of Rent to Own Homes
Renters and sellers have their share in the benefits if rent to own homes.There are so many benefits that will arise from deciding on rent to own way of selling homes. The information contained the paragraphs outlines a number of the benefits of the contract.
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.When the potential buyer find the conditions unbearable they have an option of terminating the agreement. By occupying the house the potential buyer gets a rough idea of how much the repairs will cost. The conditions of the surrounding areas is another thing the potential buyer will learn.
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. 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 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 case there are no taxes to be paid rental insurance may apply which is cheaper than insurance for homeowners. By not paying taxes the buyer will save some money towards the purchase of the home.The owner of the home does not have to advertise their home.The seller has somebody who can purchase the 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.
Finally everything that has advantages will also have disadvantages. To the buyer there will be no refunds of any amount paid if he decides to end the contract. The renter does not have any rights over the property until he buys the home permanently. 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. The owner is disadvantaged because they are not certain that the renter will purchase the home.Also when the property value goes up the seller will stand to lose because he cannot change the agreement.