There are many homes out there for rent, so it is pretty easy to get one. There is also a huge selection of houses for sale also. The difficult part is finding a rent to own home. Many people have been asking about these in the past few months. Rent to own is also called lease to purchase homes or lease with the option to purchase. They are all referring to the same type of basic set up.
A rent to own means that the seller will lease the home for some time, and when the lease is up the renter will have the option to buy the home. Usually the price that has been paid as rent gets deducted from the purchase price. This will be the price that is negotiated after the lease is up and with the market statistics up to date. In a lease to purchase, these factors are flexible but also depend on the situation. Sometimes the purchase price is negotiated before the renter moves into the home. Therefore no two cases are the same.
The reason buyers look for a rent to own is to get their credit in order, or they don’t have the money to buy the home they really like. Therefore a rent to own gives buyers flexibility and they also get a home that they want if they decide they want to purchase it. Just as you will test drive a car before buying it, you test the house. But you get to move in and stay for a few months while the negotiation takes place. There are many benefits to buyers if they are thinking of rent to own.
For sellers however things can get out of control because the renter/buyer has a lot of flexibility. It isn’t guaranteed that the renter will buy the home after the lease is up either so it is a disadvantage to the seller as he can lose potential buyers while the home is being rented. The seller gets to keep the rent but this depends on how the contract has been drawn. The seller still gets the rental as income and therefore some sellers don’t see it as a risk of losing buyers by taking the home off the market. There are some sellers who get desperate and list their property as rent to own to generate interest.
It can be really difficult for buyers and sellers to find agents who will work with them for a rent to own. Therefore when you find an agent, let them know that they would have to work with a rent to own. If the agent is not comfortable working on a rent to own, then find an agent who has experience with these transactions because there are many factors to consider when dealing with a rent to own properties.