Understanding Rent to Own Homes
You can find a lot of rental homes today, but finding rent to own homes are not really that easy. There are other names used for rent to own homes including lease to buy homes or lease with the opportunity to purchase homes. Since these phrases are all the same, their set up is also basically the same.
In rent to own homes, the renter has the chance to purchase the house when the time of rent is up. The amount that you have paid for rental will be subtracted from the purchase price of the house, if you decide to buy it. Usually the price of the house if patterned after the market price of the house, and once the negotiations are over then the deal will be settled. Depending on the situation, the details of the sale are flexible. Sometimes the price is already decided upon even before the renter moves in to rent the house. When sellers and renters negotiate on the sale of the house, the features of the agreement will vary for every case.
When there are rent to home agreements, these are usually very flexible. It is beneficial for renters to rent the house that they are interested in buying so that they can get hold of it at their credit. Sometimes individuals move in with the hope of buying the home which they like at the end of the rental time. In this arrangement, you can bring in everything you possess and use it in the house you are renting until the time comes when you can buy it. So in this arrangement, there is ample time to consider if the house is the ideal one for your needs before you even make the final decision of buying it from the seller. This is a very great advantage to the renter.
There are cases when the seller misses great opportunities. With the flexibility and advantage of the buyer, the seller sometimes loses control of the situation. At the end of the rental period, the seller is not sure if the renter will decide to buy his hosue or not. If the renter does not buy the house, then the seller has missed his opportunities of selling the house while it was being rented.
Sellers get to keep the paid rental if the renter does not pursue with the purchase and this is according to contract. In the event the renter does not buy the house, the rental that he paid is considered profit to the seller. since the house will be vacant for a while. The seller would have had the chance of selling his house for greater profit if not for the situation. But it all depends on how the seller takes the deal.
Most real estate agents do not really deal with rent to own houses. Make sure you inform your real estate agent that your intention is to look for rent to own houses.