Options- Buyers and sellers have a lot more options available when it comes to rent to own homes. Sandwich lease options, lease option assignment and lease option service are a just a few to consider:
Down Payments- You should know up front that any down payment you make is non-refundable, which is a benefit more to the seller. If a buyer, for whatever reason, cannot complete the purchase the homeowner is allowed to keep this and any rental fees they have collected. In some cases, the seller will actually make money on rent to own homes that do not eventually sell.
Higher Sales Price- Prices are down in this economy, however when a seller is willing to finance the property they can command slightly higher prices. Now this does not mean they can overprice the property simply because it is a lease to own home. At the same time they will not have to take less than market value either as is often the case when you are dealing with buyers who have poor credit.
Skip the Agents- Real estate agents have a number of resources at hand to help sell your home, including contacts, internet promotion and much more. Of course, this is not a free service per se; you will be parting with a percentage of the sales price during closing! Unless you sell it as a lease to own home. Save yourself high commissions and prevent long vacancy periods.
Caring for Property- Responsibility for taking care of the home and property will now pass to the buyers. You may need to do a small amount of regular maintenance, depending on your contract but cleaning and weather; damage prevention will be the responsibility of your tenants. The idea is that since they plan to buy at a later date they will have more interest in taking good care of the property.
Premium Rents- Rent to own homes usually rent a bit higher than market price, this is because a portion of the monthly fees goes toward the buyers closing costs and fees if they buy at the end of the lease term. Of course, if they fail to secure financing or for some reason choose not to buy this is additional income for the seller.
Down Payments- You should know up front that any down payment you make is non-refundable, which is a benefit more to the seller. If a buyer, for whatever reason, cannot complete the purchase the homeowner is allowed to keep this and any rental fees they have collected. In some cases, the seller will actually make money on rent to own homes that do not eventually sell.
Higher Sales Price- Prices are down in this economy, however when a seller is willing to finance the property they can command slightly higher prices. Now this does not mean they can overprice the property simply because it is a lease to own home. At the same time they will not have to take less than market value either as is often the case when you are dealing with buyers who have poor credit.
Skip the Agents- Real estate agents have a number of resources at hand to help sell your home, including contacts, internet promotion and much more. Of course, this is not a free service per se; you will be parting with a percentage of the sales price during closing! Unless you sell it as a lease to own home. Save yourself high commissions and prevent long vacancy periods.
Caring for Property- Responsibility for taking care of the home and property will now pass to the buyers. You may need to do a small amount of regular maintenance, depending on your contract but cleaning and weather; damage prevention will be the responsibility of your tenants. The idea is that since they plan to buy at a later date they will have more interest in taking good care of the property.
Premium Rents- Rent to own homes usually rent a bit higher than market price, this is because a portion of the monthly fees goes toward the buyers closing costs and fees if they buy at the end of the lease term. Of course, if they fail to secure financing or for some reason choose not to buy this is additional income for the seller.
About the Author:
For today's homebuyer, getting a mortgage can be a challenge. A rent-to-own agreement is a great way to pave the way to home ownership. Search for lease to own homes nationwide at RealtyStore - the largest database of bargain homes (foreclosures, fsbo, rent-to-own houses, hud homes and more).
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