The Advantages of a Rent to Own Home
A rent to own home provides a good chance for both the seller and the buyer of the home. The buyer rents the house with an aim of buying it in the long run so her or she has to get into an agreement with the seller. This means that there is a contract that is drafted so that the terms of rent can be clear to both the buyer and seller. Due to the real estate market experiencing changes with time, the selling price of the house is not given while the house is being rented. In this contract, the date the potential buyer moves into the house has to be indicated to avoid conflicts in the future. An agreement of any routine maintenance checks for the house is made depending on what the buyer and seller decide and is indicated in this contract too. A rent to own transaction has quite a number of benefits mostly to the buyer. Therefore, the following article will discuss a few of those.
For the renter to live in the house, he or she does not have to make a down payment which is one of the benefits. Rent to own a home does not need any amount of down payment. The only payment that is required before the first rental payment is a deposit for the house. When the buyer realizes that he or she wants to buy the house, the rent paid can be used as an initial down payment for the purchase of the house.
The other advantage of a rent to own home is that the buyer is able to determine if he or she loves the neighborhood. Before signing for a loan to buy a house, you are able to live in that location to find out if you can live there. There are certain factors to consider before making this decision, for example, the proximity of your kid’s schools, your workplace and the safety of that area. Once you find that it is the most suitable location for you, you can begin making preparations of acquiring the house. As a renter, you may realize that the location of the house is not working for you so you have the option of not purchasing it. When you are renting the house, you learn a lot about it. You are able to access the kind of repairs that need to be carried out in that house. As a result, you are able to ask your seller to lower the price of the house for you depending on the number of repairs that have to be done.