Advantages 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. 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. The renter will be able to know what needs to be changed in the house before they permanently acquire it.If the buyer finds the home not suitable they can end the contract. By occupying the house the potential buyer gets a rough idea of how much the repairs will cost. The knowledge of the environment is the other chance the buyer will have.
Another advantage of rent to own homes is that the purchase price is fixed from the beginning.The terms of purchase being the same throughout means neither party has powers to do alterations. The terms of sale of property do not change no matter the case. 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. Only the agreed rent deposit will be required on the side of the buyer.In cases where no tax is required rent insurance will be paid which is cheaper than homeowners insurance. 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.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. To the buyer there will be no refunds of any amount paid if he decides to end the contract. The buyer does not have any rights on the property until they have purchased. 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. To the seller the income comes in slowly because the payments are not once off. Another negativity of the process is that the seller cannot be fully assured that the renter is the ultimate buyer.In case there is an appreciation in the value of the property the seller will be at loss because he cannot change the contract.