Rent to own home contract allows the seller to sell their property in an unsteady market. This type of contract has both benefits and risks for sellers. These type of contracts are generally benefit to sellers than buyers. Seller also have some potential risks with these transactions. Take wise steps to minimize the risks in rent to own transactions.
In rent to home contract the price is locked in at the beginning of the contract. Home prices could go up over the next couple of years, so try to add at least 5% to the current market price of the home.
Buyer have to pay an option fee to the seller at the beginning of the contract. So Sellers should always demand an option fee up front. The option fee will go toward down payment of the purchase if the buyer exercise the option to buy. If the the buyer fails to execute the option to buy, the option fee remains with the seller and not refundable.
Make sure spells out responsibilities for maintenance and repairs in the agreement.
In rent to home contract the price is locked in at the beginning of the contract. Home prices could go up over the next couple of years, so try to add at least 5% to the current market price of the home.
Buyer have to pay an option fee to the seller at the beginning of the contract. So Sellers should always demand an option fee up front. The option fee will go toward down payment of the purchase if the buyer exercise the option to buy. If the the buyer fails to execute the option to buy, the option fee remains with the seller and not refundable.
Make sure spells out responsibilities for maintenance and repairs in the agreement.