Understanding Rent to Own Homes
Although there is no lack in houses for rent today, but rent to own homes are not easy to find. Sometimes rent to own homes are also called lease to buy homes or lease with the opportunity to purchase homes. These names are all used for rent to own homes and their set up is basically the same.
Once the rental period is over, if you have a rent to own agreement with the owner, then you can opt to purchase the house from the owner. The amount that you have paid for rental will be subtracted from the purchase price of the house, if you decide to buy it. Usually the price of the house if patterned after the market price of the house, and once the negotiations are over then the deal will be settled. But, the details are flexible and they are based on the situation of the time. There are instances when the seller and the renter agrees on the purchase price even before the renter moves in the house. When sellers and renters negotiate on the sale of the house, the features of the agreement will vary for every case.
When there are rent to home agreements, these are usually very flexible. It is beneficial for renters to rent the house that they are interested in buying so that they can get hold of it at their credit. Sometimes individuals move in with the hope of buying the home which they like at the end of the rental time. The renters can then actually move in a house they like with this possessions and live in it till the fixed time. So in this arrangement, there is ample time to consider if the house is the ideal one for your needs before you even make the final decision of buying it from the seller. The benefit in this situation falls on the renter.
It is not always a favorable situation for the seller. With the flexibility and advantage of the buyer, the seller sometimes loses control of the situation. The seller is not sure if the renter will buy his house at the end of the rental period. If he doesn’t, the seller would be in a position where he might have lost prospective buyers when the house was being rented.
Sellers get to keep the paid rental if the renter does not pursue with the purchase and this is according to contract. Sellers consider the rent as profit for their otherwise vacant house. The chance still stands that in real estate the seller would have had the chance to sell his house for a greater profit. Gain or loss is dependent on how the seller responds to how the deal turned out.
Most real estate agents do not really deal with rent to own houses. Make sure you inform your real estate agent that your intention is to look for rent to own houses.