With the economy a little shaky these days, purchasing your dream home seems to be a not-so-wise decision.
That's why rent-to-own homes have been the far better choice of homeowners nowadays.
Rent to own contract, also called lease option, is the arrangement between the seller and the buyer that states two options for the buyer after the contract has ended.
First is to buy the item in a fixed price.
Second is where buyer can walk away, and therefore forfeiting the buyer's option fee.
Option fee is the monthly fee you pay your seller that let's you buy the right to purchase the item before anyone else.
It is non-refundable, but the good thing is, this goes directly to the down payment you need to buy the item at the end of your contract.
Well, rent-to-own homes have been said to have the biggest benefits to homeowners of today since it requires a less option fee and only a little additional to your rent fee every month.
The best thing is you can even have repairs in your soon-to-be home, covered by the landlord.
In this way, your house will even have a better look when the time comes that you already OWN it without anything at your expense.
With this kind of benefits available with rent-to-own houses, the demand for it just went up, which is why there have just been too many rent-to-own houses available in the market today.
For this reason, when reading through a list of ads for these rent-to-owns may just give you a head ache especially if you'll go through them all.
This is why you need to go through the "to dos" list that we have created for you to choose which rent-to-own contract you will consider.
To Dos Do the Seller-Homework.
When looking for a prospect rent-to-own seller, you MUST do your research on the background of your seller.
Get to know how many rent-to-owns he/she already sold.
Are the buyers still living in the same house? Are the buyers satisfied and happy about the way the rent-to-own contract was made and fulfilled? Does he/she have that special interest to keep the values of the properties he/she is selling high, which will likely result to better caretaking of his/her properties? These are just some questions you need to answer for you to have confidence in the seller you have chosen to negotiate with.
In this way, you will have better transactions with the seller and get the rent-to-own home that best suit your interest and budget.
Clear Details.
When signing the contract with your seller, be sure to read it first.
Not only will you read it, but you must understand what the content of the contract is.
If it's a real rent-to-own contract, then the contract must include the fact that after the deal is done, the buyer gets to either buy the home; or walk away (therefore forfeiting his option fee).
Vague details are a big no-no.
Ask questions that you don't understand on any part of the contract.
Specific details like if you are allowed to extend your contract if you fell like you won't be able to buy the house after your contract, will be good to ask.
We hope that this short to do list will help you think things through so that you'll be able to get the home that you have been dreaming of.