Need to Know About Rent To Own
Rent-to-own can be a winner for those who have a poor credit score or are facing financial difficulties and are unable to buy the house at once. In a rent-to-own option, the buyer gives a specific time to fulfill the down payment. A complete process to buy a house through rent-to-own can go for 1 year or even 3 years, depending on two parties’ negotiations.
Reasons Why Rent-To-Own Can Be Winner
1. Bad Credit Score Does Not Affect Your Decision: One of the many reasons why the rent-to-own option attracts everyone is because a buyer can engage in a house buying contract even though he has a poor credit score. They have a full chance to improve their credit score status by living on rent on that property. And later on, when the credit score is average, they can buy that property.
2. Test The Property: Have you ever wanted to have a test-living just like you have a test-drive while buying a new car? This is possible only by buying through a rent-to-own option. By paying rent and living at the same property, you might have the chance to see how it feels like to live there.
You can test the property and see if it fits your lifestyle. You actually have the chance to live in the property for a year or two and see if you are making a wise decision or not. Moreover, you can also leave the property if you have any issues with the property.
3. Price Appreciation: Do you know that even in rent-to-own property, the contract price that is negotiated by two parties is always fixed and final? It means that there is a huge price appreciation. The seller cannot increase the purchase price even after the end of the contract and the buyer cannot negotiate the price no matter what.
This is the greatest advantage of going for a rent-to-own option. However, there can be some disadvantages too. You might go in loss too whenever the market goes in the opposite way, which is rare.
Rent To Own Makes Sense
However, there might be a possible forfeit of money, so any future buyers must always be careful.