Buying a rent to own home in Fort Myers will help you purchase your dream home, even if you aren’t quite ready today. In our latest post, we will offer guidance on what you can expect during the process so you don’t find yourself stuck with any surprises.
In the Fort Myers area, savvy sellers are increasingly recognizing the advantages of selling through rent-to-own contracts, benefiting both parties involved. Through this approach, sellers expand their pool of potential buyers, while buyers gain the opportunity to establish roots and rebuild their credit over time. While rent-to-own agreements may carry perceived risks, when executed smoothly, they can prove mutually advantageous for all parties.
How It Works
Rent-to-own contracts typically involve terms agreed upon by both the buyer and seller, though the process generally follows a standard outline. Initially, the buyer and seller enter into an agreement stipulating that the tenant will lease the property for a set duration, with the intention of purchasing it outright once the lease term concludes. While the length of the lease period can vary, it often spans around 2 years, affording the buyer time to bolster their financial readiness and address any credit concerns. If uncertain about meeting these requirements within the specified timeframe, a rent-to-own contract may not be suitable. However, for those confident in their ability to complete the purchase at the lease’s end, such an arrangement can prove highly advantageous in the long run.
During the rental period, the tenant will usually pay an increased rent, with a portion of it going toward the down payment on the home. There will be a payment upfront to secure the tenants intent to purchase the home. If they should default, the owner will be able to keep the deposit and increased rent paid. If the tenant should fulfill their lease obligation, they will then be able to buy the house at the predetermined price. Most of the time, prices are agreed upon before the lease is signed. This can be beneficial for you should the market go up before the sale is final.
Pros and Cons
While buying a rent to own property is the perfect choice for some buyers, others will experience disappointment at their inability to qualify for a traditional mortgage right away. There are many other pros and cons too, including…
The Good
- You’ll have a sense of pride knowing that someday soon, that house will be yours
- You will have a chance to save money and repair your credit
- You’ll be able to begin putting down roots right away
- You won’t miss out on the home of your dreams
- You’ll build equity instead of just renting
- Locking in today’s price will save you money
The Bad
- You might be paying higher than average rent
- Something could go wrong with the house after you move in
In summary, utilizing a rent-to-own contract to purchase a house in Fort Myers can offer advantages for both the buyer and seller. However, before finalizing any agreements, it’s crucial to ensure all details are thoroughly addressed. Including contingencies in the contract is essential to safeguard against potential major issues with the property. No one wants to be bound to purchase a home with significant problems such as mold infestation or similar issues.