Rent-To-Own Real Estate
Offering an alternative path to homeownership, rent-to-own options allow those potential buyers who don’t have the credit, or the down payment, needed to purchase a home, the time and ability to live in the home that they hope to call theirs one day.
Meant to allow a buyer the time to improve their credit, without wasting money on a lease or rental, rent-to-own properties make it easier for many individuals who wish to own. Though the option can be beneficial for both the buyer and the seller, the steps involved can be quite complicated, requiring the help of a licensed real estate agent. By helping you through the process, we ensure that your rights are protected before, during and after the agreement to buy is initiated.
By ensuring that the conditions of the agreement make the purchase a sensible one for your long-term financial goals, we represent your best interests in all matters regarding a rent-to-own property acquisition.
Elements that must be covered in any rent-to-own agreement include
- Option Money – A non-refundable fee paid to the seller giving the potential buyer the option to purchase the home in the future. Lease-option contracts give the potential buyer the right to buy, but not the obligation to buy when their lease expires. Many lessees overlook the word “option” in these contracts, believing that the wording “lease purchase” denotes the same meaning. It does not and actually allows the seller to require the potential buyer to purchase the property at the end of their lease. As your real estate agent, we’ll protect you against this type of oversight.
- Purchase Price – Whether you choose to set a purchase price at the time of the initial contract signing or would prefer to settle on a price at the time the lease expires depends on you and the seller. The agreed-upon price and terms though will be included within the contract to avoid miscommunication and any future problems.
- Rent – In most rent-to-own contracts, an amount of the agreed-upon rent payments will be applied to the purchase price of the home. With a percentage going towards a type of equity account, it is likely that the rent payment will be higher than the average for that area. As your personal agent, we’ll make sure that all contributions to the purchase price are designated as such, protecting your long-term interests.
Other factors, regarding both maintenance of the property and stipulations regarding loan qualifications, should be thoroughly discussed with your personal agent to ensure that all aspects are covered within the contract.
Find out more about rent-to-own opportunities and if they make sense for you and your financial goals by calling our team today.