Many people mistakenly believe that rent-to-own homes are a myth and don’t actually exist. This causes rent-to-own homes to incorrectly be labeled as scams. Due to this, many legitimate opportunities go overlooked and are not taken advantage of by the people who can use these types of agreements the most.
While it is true that finding the right opportunity is difficult, the fact of the matter is that rent-to-own homes are not only a reality but a great alternative path to homeownership for many individuals. As with any legally binding contract, you should make sure to educate yourself on the pros and cons of this type of agreement prior to jumping in.
Did you know most homes listed in the MLS do not include rent-to-own properties?
This feeds into the misconception that rent-to-own opportunities are not real and may cause real opportunities to be disregarded. If you are looking for a rent-to-own opportunity that will allow you to live and rent the home while building up your credit and saving money for a down payment, you should make sure to find legitimate rent-to-own opportunities through trusted aggregators, such as www.irenttoown.com. We have an extensive list of trusted and verified rent-to-own opportunities throughout the United States.
Many Sellers Lean Toward Traditional Mortgages
Many sellers will lean toward traditional mortgages and go through the standard route of selling their home through a realtor or on their own. This is often because homeowners are not aware of the benefits of renting to own their home or they are not aware that this option exists. Many sellers choose the traditional route because they prefer to have the lump sum of the home sale now rather than in increments over time. Due to this, you will have to approach traditional home sellers with an appealing offer that will sway them toward renting-to-own.
Rent-to-Own Agreements require a lot of work yourself:
Because these types of agreements are less well-known, and are often agreed upon directly between the buyer and the seller without the involvement of a realtor, that means that the burden of preparing contracts and negotiating the agreement falls upon you, the buyer. Make sure to get good legal representation before signing contracts, and negotiate a favorable agreement to both you and the owner.
Rent-to-Own homes do eventually require the purchase of the home.
With rent-to-own agreements you don’t rent-to-own the home forever, you eventually get to a point in the contract where you must decide to buy the home or forfeit the agreement and move on. When this part of the contract is reached, you will have to apply for a traditional mortgage. However, the additional time you have spent renting will have provided you with the opportunity to save up for a down payment and improve your credit score, making it more likely for you to be approved for a mortgage with an appealing interest rate.