Why Rent to Buy?
Conventional models of home buying may not work for everybody. In today’s market, it’s important to be flexible when buying or selling a home. People are more cautious when buying and banks are stricter when lending, so being creative in the real estate transaction space is paramount. One home buying solution both buyers and sellers may find attractive is rent to buy.
What Is Rent to Buy?
Rent to buy is an arrangement similar to a lease-to-own arrangement for a car. You start by making a small deposit, which goes into escrow as part of the down payment for the house should you choose to buy. Each month, you pay rent as well as a rent credit that goes into the escrow account. After the term of the lease ends, usually 24 to 36 months, you should have a considerable down payment in escrow. You may now either choose to buy the home – either with the down payment plus money you have saved or with a mortgage you must now obtain – or forfeit your rent credit and leave the property.
Why Do People Choose Rent to Buy?
For buyers, rent to buy is an appealing option if you have less than perfect credit. The idea is that you live in the home and spend two or three years repairing your credit. Then you are able to obtain a mortgage when the time comes without having to wait to live in the home or pay a higher price if home values rise. For a seller, you might sell as rent to buy if you are struggling to find someone who can purchase your home at the price you want.
Should I Sell a Home as Rent to Buy?
There are many advantages to putting your home up to sell as rent to buy. You receive rent every month, and if your tenants opt not to buy, you have a nice windfall in their rent credit and you are free to sell the home to someone else. However, if you need the money right away, or you don’t have the time or resources to be a landlord, rent to buy may not be for you.
Whatever your real estate needs are, if you are looking to sell or buy property in the York County, Pennsylvania, area, CENTURY 21 Core Partners can help. We have the knowledge, experience and commitment to customer service to help you make the transaction you’re looking for fast and to your satisfaction. To learn more about how CENTURY 21 Core Partners can help you with your real estate needs in Pennsylvania and Maryland, contact us today.