With the varied options of gorgeous houses – like those found on the Website Wheretoliveindc.com – it can be frustrating to find the right one for a new buyer. It's so tempting to go house-hunting, particularly that Fall has some of the best deals around. But what if you're not ready to make a commitment?
Purchasing a home is one of the biggest investments a person can make in their lifetime. Even sellers sometimes get the blues for wanting to let go of their hard-earned property. It's normal for people to feel nervous or unsure of themselves when it comes to real estate. This flurry of mixed emotions is probably how the notion of rent-to-own came about.
Rent-to-Own, also called 'lease-purchase', is a system where the tenant agrees to pay monthly rent – a portion of which goes to the mortgage of the home. After the leasing agreement, the seller can be confident knowing that he or she already has a willing buyer. This works for most people; particularly for folks whose houses have been on the market for a very long time.
In every transaction, there's always pros and cons for both parties. In the case of lease-purchase agreements, it's more on assurance. Buyers can 'lock-in' their desired purchase price immediately; avoiding the stress of market spirals or downturns in coming years. It's very convenient: especially for families who want the certainty of a future dwelling.
This is a great option for those who seem to be perpetually on the obscure end of real estate. Now they can try out the home and see first-hand how it feels like to live in them – without an actual purchase. Mortgage and tax payments are still the seller's responsibilities during this time frame.
Sellers on the other hand, could take this opportunity to have someone care for the home; while earning them money on the side (in the form of rent). Properties that have been on the market listing for a long time can produce desperate owners. This system somehow alleviates their fears.
Also, having someone already interested in the dwelling can be hard to come by for some. So this can be a sure win for them, too.
It would be wise to point out that not everyone complies with contracts. There have been cases wherein a tenant moves in and the seller suddenly finds out about bad credit card scores. This will affect payments and might eventually lead to contract termination. Or in worst case scenarios – the tenant would change locks in the home and stop paying rent altogether.
For the part of the buyer, the negative aspect is when they decide to change their minds later on. There are usually no refunds since it's the bank or lender who determine mortgage rates from the rent. Refunds can be awarded though, if the buyer decides to purchase the property for good.
Contracts for rent-to-own homes are highly negotiable. It's best to coordinate with skilled brokers regarding this matter; and know your needs beforehand as well.