Rent-to-own is the best option for buyers who have a problem in financing or paying for down payments. If you are considering rent-to-own and heard only the good side of the story then carefully evaluate the cons of the process before you make any decision. Look before you leap. Educate yourself with the terms and conditions first and don’t just agree to something especially if it isn’t clear. To guide you in your decision whether to buy or not to buy, know not only the advantages but also the disadvantages of RTO:
Cost – A house that would have been purchased at $300,000 could have a price of $340,000 after a one-year-rent-to-own agreement and even higher at the end of a two-year agreement.
Higher Payments – The monthly rent you pay under a rent-to-own agreement is higher than the rent you pay under a normal rent agreement. This is true because you are not only paying for the space but you are paying for the ‘option to buy’ the property at the end of the set lease period.
Eviction – An eviction may occur even when a single payment is missed. In short, the seller will forfeit the money intended for down payment because of a single missed payment.
Cancellation of the Contract – Most rent-to-own agreements don’t have a term for a third party transfer in case something happens to the original owner. The insurance may cover any losses in these situations but the seller might be justified in terminating the RTO agreement without having to refund the renter’s money.
Rent-to-own is a good choice but it’s also risky. Unsure about it? Pause for a while and think if you can adhere to the terms. Almost each and everyone of us is dreaming of having their own Mesa AZ Real Estate property, but is not ready yet to give up renting. Good news! Rent to own with its lease-option-contract can make your dream of buying a home possible. Simply visit Real Estate in Potomac Maryland for buying advantages.