Rent to own programs can be attractive for buyers, especially for those who expect to be in a strong financial position within a few years. This type of program is a way to buy or sell something over time giving the buyer an option to purchase at some point in the future. Rent to own transactions are almost the same with a standard home sale and is an alternative to traditional home loans wherein both buyers and sellers can benefit from these arrangements, but both parties must know what the risks are before starting a deal.
Buyers who cannot qualify for a home loan can start investing in a house with a rent to own agreement, wherein over time, they can work fixing their credit scores. Buyers can also have the time to learn about issues with the house, neighbors or other problems before committing to buy the property. In addition, buyers can build equity in a way overtime payments can accumulate and provide a substantial sum to be put towards the home’s purchase or they can just save the money and have the ability to buy any house.
As for the seller, they can market their property to renters who hope to buy in the future considering not everybody has good credit but needs a place to live. Sellers can also use their property to earn rental income while moving towards selling a property, as well as ask for a higher sales price when you offer rent to own. In addition, sellers can entrust their property to a potential buyer who is more likely to take care of the property.
Advice is essential before getting started and be sure to review any contract with a real estate attorney because these transactions can be complicated. Call us today for a free consultation! 210.688.9740