Rent to own is often referred to as a less than desirable situation in the main stream media or by uninformed real estate agents but there are many reasons why rent to own is great for buyers. Check out the 5 simple reasons why rent to own is a better deal than you thought!
It is one of the only methods available that gives buyers the ability to simultaneously work on their credit while working toward home ownership. This is a true two birds one stone scenario, where you don’t have to continue to rent a home you will never own while you work on fixing your credit to get a loan approved.
Rent to own can help buyers save up money for a down payment while having a place to live. Saving is hard work and it’s even harder when you’re a young family or have low income, but with rent to own your saving for a down payment is built right into your monthly rent payments.
In the right market rent to own can be used to lock in a sale price in a market where prices could rise. This helps buyers not get out priced in a market with rising prices while they work on down payment, credit, and other financing issues.
If something seriously wrong is found with the house you can walk away and the only thing you will lose is your option fee. Instead of being stuck with a home with disastrous foundation problems or in need of a new roof you simply walk away. This is a serious advantage to buyers, especially those with limited funds to make big repairs.
If you use a good real estate attorney separate from the seller you can ensure there are no unfair loop holes and that you are fully aware of all the terms of the contract. The use of a real estate attorney easily defeats possibility of a shady home seller pulling a fast one on unsuspecting buyers.
While there are some things that could go wrong with rent to own or any real estate transaction, hopefully now you can see quite a few more benefits on the pro side opposed to the cons. For more information on rent to own visit our homepage to find guides and how to’s.