Rent To Own Seller Benefits
12/1/2008
This week’s iRentToOwn blog is focused on the benefits of the iRentToOwn transaction to the seller. Today’s real estate markets are seeing an extraordinary number of homes just sitting on the markets. For sale home inventory is at a record level, driven by a poor performing economy and increasingly stringent mortgage guidelines.
Today’s seller is faced with a tough dilemma: Do I accept a reduced priced? Or do I rent the home out on a temporary basis? Both of these situations are unattractive for several reasons. First, in many cases if the seller is forced to accept a lower price any remaining equity in the home might be lost. Or, in the case of renting the home, there is a chance that the temporary tenant will treat the home poorly. Both of these alternatives are not attractive – luckily the Rent To Own transaction can solve both these problems.
In the Rent To Own transaction the home purchase takes place at a later date, after the tenant has had the time and assistance to improve their financial situation. This allows them to secure a mortgage at lower interests, allowing them to increase their home purchasing ability. As the seller you are able to lock in a higher purchase price than your home would sell for today!
In addition to locking in higher purchase price you fill your home with a much higher quality tenant than through a traditional lease. The tenant in your home is invested in your home and will treat it as their own home, since they are working to purchase it at the end of the lease!
The Rent To Own transaction is a great option for buyers unwilling to make the sacrifices that today’s market is requiring. Contact an iRentToOwn agent to find out more!
Next week’s blog: Rent To Own Buyer Benefits!
Rent to Own: The Perfect Solution for Home Owners and Buyers
10/12/2008
Today’s turbulent times are making it even tougher for both home owners and potential home buyers. Home owners have seen once seemingly affordable monthly mortgages rise to levels that threaten their financial well-being. Potential home buyers are finding that mortgage lenders have made their credit requirements so tight that even those with strong financial profiles are unable to secure a loan. It is in times like this that the Rent To Own transaction offers the perfect solution to both buyers and sellers.
The Rent To Own transaction has been utilized for many years, but until this recent economic crisis has stayed mostly out of main stream realty. Rent To Own is becoming an increasingly popular transaction in today’s market. It offers buyers and sellers the flexibility of a lease, but the feeling of having completed a sale and purchased a home.
The advantage to buyers is the ability to lock in a purchase price on a home after they have been given the time to improve their financial situation. During the lease the buyer earns rent credit that is credited to the down payment at purchase. When compared to a traditional lease, the advantageous are clear – rent is no longer “thrown away” and the potential home owner is able to settle into a new home, as opposed to just a temporary apartment.
Sellers benefit from finding high quality tenants to occupy their home as opposed to typical renters. Additionally, sellers are able to earn higher monthly incomes than through typical rentals.
The Rent To Own transaction is a win for both buyers and sellers and is picking up strong momentum in today’s market. Check back next week for our next Rent To Own blog!