Short Course on Rentals – Getting to Square 1
Some of the Benefits of Rent to Own Homes
Rent to own homes have advantages both to the seller and the buyer.There are so many benefits that will arise from deciding on rent to own way of selling homes. The information contained the paragraphs outlines a number of the benefits of the contract.
A chance to know the condition of the house he wants to buy is the number one benefit to the renter. Potential purchasers will have an opportunity to access the improvements that need to be done in the house.When the potential buyer find the conditions unbearable they have an option of terminating the agreement. The renter will have an estimate of how much it may cost him/her to improve when he enters the house. 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 price being fixed means that neither the buyer nor the seller can change the price. No matter what the terms are no one can make changes. Once the contract has been entered into the buyer has to comply even when there is depreciation.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. The buyer is not supposed to pay any down payment for the property he intends to buy. Only the agreed rent deposit will be required on the side of the buyer.In case there are no taxes to be paid rental insurance may apply which is cheaper than insurance for homeowners. 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. It is also less expensive for the seller as there is no real estate agent. Property agents have to be paid a percentage of the proceeds from the sale; this can be avoided with rent to own method.
Lastly everything has its pro and cons. The renter will lose everything that he has paid for if he decides to discontinue the agreement. Buyers can not in any way treat the home as their own until they buy it. 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. Another negativity of the process is that the seller cannot be fully assured that the renter is the ultimate buyer.When the value appreciates with time the seller will suffer losses because he cannot make changes to what has been agreed upon.
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