The Price And Payment Plan

Decent Essays
“Rent-to-own” is a great option for these so-called “boomerang buyers.” In today’s struggling economy these people may not have the best credit score, or simply may not have the funds to put down a huge down payment toward a house and get a mortgage. Maybe even they are afraid of tying themselves down to a house when they do not feel financially comfortable. This option allows for much flexibility.
For one, renters and landlords/real estate agents can negotiate a payment plan. The buyer may be offered to rent the house for five years and pay $550 a month plus utilities. On the flipside maybe this is a couple who can afford a higher monthly rent so maybe they pay $775 a month for less time to rent-to-own the same house. The price and payment plan are negotiable. Opening up negotiation allows buyers to feel less worried financially. They can work out a plan that fits their budget without the fear of the price ever increasing or interest on a home loan increasing. It will be a flat rate until they own the house.
Another benefit of developing the rent-to-own option is that it does not make the renters entirely tied down. Leases can be signed yearly, for two years, etc. However, if by the end of the lease the buyers realize this is not the house for them, they move. Instead of worrying about selling the house and dealing with the giant sum of money spent on buying a house, they can just move out. Not only does this give them the freedom to move and not have to worry about
Get Access