Understanding Rent to Own Homes
Although there is no lack in houses for rent today, but rent to own homes are not easy to find. There are other names used for rent to own homes including lease to buy homes or lease with the opportunity to purchase homes. All of these names all refer to rent to own homes with basically the same set up.
If you are in a rent to own agreement, you have a chance to own the home you are renting when your rental period is over. The amount paid as rent will be subtracted when the renter buys the house. Negotiations are usually according to the market prices, and the deal will be settled after these negotiations. The buyer and the seller can be flexible in the details of their agreement based on their specific situation. There are cases when the price is decided after negotiation ever prior to the moving in of the renter. In each case, the features of the agreement can vary.
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.
For sellers, however, the situations will not always be favorable. 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. The seller might have lost prospective buyers in the hope that the renter will buy the house, but if the rented does not buy it, then the opportunities of selling the house were missed.
Sellers get to keep the paid rental if the renter does not pursue with the purchase and this is according to contract. Sellers consider the rent as profit for their otherwise vacant house. In that situation the seller lose his chance of selling the house for a greater profit. Gain or loss is dependent on how the seller responds to how the deal turned out.
Most real estate agents do not really deal with rent to own houses. If you are looking for one, you should inform your agent beforehand of your intention.