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.
The first advantage that the buyer gets from rent to own homes is an opportunity to know the condition of the property. Buyers will be able to determine the kind of adjustments or improvements that may be required.If the buyer finds the home not suitable they can end the contract. By first using the home before buying it will help the renter get familiar with what may need to be done about it. The buyers will have an opportunity of familiarizing themselves with the surrounding areas.
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. After agreement, no one has control over any circumstance like fluctuation in the value of homes.In cases of depreciation in value of the home the seller benefits because the terms remain.
Rent to own homes are inexpensive to the sellers and the buyers. The buyer is not supposed to pay any down payment for the property he intends to buy. Rental deposits will be expected to be paid by the renter.Where you find no tax amount required rent insurance will be payable which is cheaper than homeowner insurance. When the renter is not required to pay the tax he/she gets a chance of making savings to make a home purchase.This contract type saves seller the advertisement cost.The seller has somebody who can purchase the home. Real estate agents are removed from the process, and this makes it cheaper to sellers. You can eliminate the commission that the real estate agents will need to be paid.
Finally everything that has advantages will also have disadvantages. The renter will lose everything that he has paid for if he decides to discontinue the agreement. The buyer does not have any rights on the property until they have purchased. When the value of the property goes down the buyer will lose because the contract cannot be changed. The seller may not enjoy the benefits because of the slow modes of payment. The owner is disadvantaged because they are not certain that the renter will purchase the home.When the value appreciates with time the seller will suffer losses because he cannot make changes to what has been agreed upon.