Rent to Own Homes
Author: Heather Seitz | Posted: 07-05-2008
Are you
someone who wants to own a home someday? Who does not? But what is holding you back? For
most of us the answer is finance. If you have a bad credit record, it is unlikely that you
will get a house loan to buy your dream house.
For most of us the only way to start
living in our dream house depends on factors such as, having good credit, making a large
down payment, and going through a landlord, but all that is history now with the
introductions of the rent to own home facility. Now as a buyer you can lease the home of
your choice for a few years before taking the big leap and finally buying the piece of real
estate.
Both buyers and sellers alike can benefit from a rent to own transaction.
Nowadays it is really hard to find a buyer who has all the factors running in his or her
favor, such as having good credit, or the ability to make a large down payment, but the
rent to own home makes it easier for people with fewer resources to get a chance to buy
their dream homes.
Buyers these days prefer to go for the rent to own homes because of
certain added advantages provided by this kind of a transaction. Firstly, this type of a
transaction helps the buyer get a good first hand experience regarding the house, because
you know the price of the house only when you start living in it. Minor problems that are
not visible from the outside, for example leaking pipelines, paint falling off etc. become
more imminent when it prospective buyers start living n the house.
Secondly, for the
first time real estate investor it is always a good idea not to buy a property with cash
through an outright sale, rather it will be a good idea to lease it first and then buy
it.
Thirdly, people who have bad credit can buy their dream homes by this process as they
can repair their credits during the lease period and build up equity. Besides getting a
rent to own home is almost the same as leasing to own a car where the buyer leases the car
to find out more about the car and whether it meets his requirements or not, and finally he
buys the car if it meets the standards.
For the sellers the rent to own home facility
brings in more customers than the outright sales. There are many homeowners who have listed
their properties but there is a significant lack of prospective buyers in the cash buying
market, most of the investors nowadays prefer to buy houses through their rent to own
homes.
Most of the sellers can benefit from the fact that most of the times the deal does
not go through and they might end up with the entire rent amount to their discretion as the
rent credit is considered non refundable. Besides this lease to own home feature allows the
sellers to derive the benefits of the houses a bit more before actually selling it off to someone else.