There are several benefits in rent to own home options, the first time
real estate investors gain a lot of benefits from this alternative. If
you are someone who has a bad credit history and thereby do not meet the
criteria for a home loan, you can always opt for the rent to own home
option so that you do not have to go through a credit check.
Most of the buyers are now opting for the lease to own homes as their
preferred mode of purchasing properties. In this method of leasing to
own properties prospective buyers can rent homes and inspect the real
estate before making the final decision about closing the deal.
The buyers planning to buy their first home in this way do not have to
worry about the large down payments, as in this case they have to make a
smaller down payment and thereby enjoy more benefits.
Advantage of the buyers: the buyers nowadays prefer to go for the rent
to own homes because of certain added advantages given by this type of a
transaction. Firstly, this type of a transaction helps the buyer get a
good first hand experience regarding the house, because you know the
price of the house only when you start living in it. Little problems
that are not visible from the outside, become more imminent when
prospective buyers start residing in the house, the problems might
include leaking pipelines, paint falling off etc.
Secondly, for the first time real estate investor, it is always a good
idea not to buy a property with cash through an outright sale, rather it
will be a good idea to lease it first and then purchase it.
Thirdly, people who have bad credit can buy their dream homes by this
method as they can fix their credits during the lease period and build
up equity. Besides, getting a rent to own home is almost the same as
leasing to own a car where the buyer leases the car to learn more about
the car and whether it meets his requirements or not, and finally he
buys the car if it fits the standards.
Benefits of the sellers: For the sellers the rent to own home facility
brings in more customers than the outright sales. There are lots of
homeowners who have listed their properties but there is a substantial
lack of prospective buyers in the cash buying market, most of the
investors nowadays tend to buy houses through there rent to own homes.
Most of the sellers can benefit from the fact that most of the time, the
deal does not go through and they might end up with the entire rent
amount to their discretion as the rent credit is considered non
refundable. Besides this lease to own home feature enables the sellers
to derive the benefits of the houses a bit more before actually selling
it off to someone else.
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