Rent to own homes have advantages both to the seller and the buyer.Rent to own process of selling the property has quite some advantages. The information contained the paragraphs outlines a number of the benefits of the contract.
The first advantage that the buyer gets from rent to own homes is an opportunity to know the condition of the property. The renter will be able to know what needs to be changed in the house before they permanently acquire it.When the potential buyer find the conditions unbearable they have an option of terminating the agreement. By occupying the house the potential buyer gets a rough idea of how much the repairs will cost. The knowledge of the environment is the other chance the buyer will have.
Another advantage of rent to own homes is that the purchase price is fixed from the beginning.The terms of purchase being the same throughout means neither party has powers to do alterations. The terms of sale of property do not change no matter the case. After agreement, no one has control over any circumstance like fluctuation in the value of homes.When there is a decline in prices of homes it becomes profitable to the seller as the agreement cannot be redrawn.
Rent to own homes are price sensitive to seller as well as it is to buyers. For instance, no down payment is required to be paid by renters. 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 has somebody who can purchase the home. It is also less expensive for the seller as there is no real estate agent. You can eliminate the commission that the real estate agents will need to be paid.
Lastly everything has its pro and cons. To the buyer there will be no refunds of any amount paid if he decides to end the contract. Buyers can not in any way treat the home as their own until they buy it. The fact that the price agreed does not change may be a blow to the buyer when the value of the home declines with time. The seller may not enjoy the benefits because of the slow modes of payment. Another negativity of the process is that the seller cannot be fully assured that the renter is the ultimate buyer.In case there is an appreciation in the value of the property the seller will be at loss because he cannot change the contract.