Advantages of Rent to Own Homes
Rent to own homes have advantages both to the seller and the buyer.By choosing rent to own there are many positive achievements that come in. Explained the following paragraphs are some of the advantages of rent to own homes.
The first advantage that the buyer gets from rent to own homes is an opportunity to know the condition of the property. The renter will be able to know what needs to be changed in the house before they permanently acquire it.If the buyer finds the home not suitable they can end the contract. By occupying the house the potential buyer gets a rough idea of how much the repairs will cost. 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. No matter what the terms are no one can make changes. Even with a decline in the value of the home the buyer has to pay the amount agreed in the contract.The contract benefits the seller because the amount he receives does not change even if the value of his property declines.
Rent to own homes are inexpensive to the sellers and the buyers. There is no need for a down payment by the buyer. Only the agreed rent deposit will be required on the side of the buyer.In cases where no tax is required rent insurance will be paid which is cheaper than homeowners insurance. By not paying taxes the buyer will save some money towards the purchase of the home.The owner of the home does not have to advertise their home.The seller already has a ready buyer of is home. Rent to own homes are also cheaper to seller because they eliminate real estate agents. You can eliminate the commission that the real estate agents will need to be paid.
Lastly everything has its pro and cons. If the renter decide to terminate the contract for any reason they will not recover any thing they paid for. The renter does not have any rights over the property until he buys the home permanently. The price being fixed to the terms of the agreement the renter may be at lose when the value depreciates. The landlord does not enjoy full benefits of his property because the amount is paid in bits. The owner is disadvantaged because they are not certain that the renter will purchase the home.In case there is an appreciation in the value of the property the seller will be at loss because he cannot change the contract.