If you don’t have your finances ready to buy a home right away from a “we buy houses in NJ” company, a rent-to-own home could open up an opportunity to gradually become a homeowner. And if you’re a seller, entering into a rent-to-own agreement might prove to be beneficial than joining hands with a “sell my house fast NJ” company.
In this post, we’re going to see the major pros and cons of rent-to-own homes from both buyers’ and sellers’ perspective.
Even if you fulfill all criteria to qualify for rent-to-own, things may not be rosy always. Let’s take a look.
- You can move into your preferred house instantly and get adequate time to prepare your credit and finances. Therefore, at the time of purchasing the house, you’ll be in a position to secure a mortgage loan easily.
- You’ll be able to build equity in the house through your monthly rent payments, which will eventually lower the amount of down payment that you’ll need to pay at the end of the contract.
- It’ll let you check out the home, as well as, the neighborhood. If any of these doesn’t suit you, you can cancel the purchase as long as your contract allows it.
- You’ll probably responsible for doing maintenance and repairs on the house, which may become an additional burden during your stay. Additionally, if you cancel the purchase for any reason, all the money you spent on those jobs will be gone.
- Also, if you decide to back out, your option fee and the percentage of rent that was set aside by your landlord for the purchase will be gone.
Here’re the pros and cons of a renting-to-own you need to consider if you’re a seller/landlord.
- Entering into a rent-to-own agreement would help you get more potential buyers if you’re facing difficulties in getting ideal buyers.
- During the lease period, you’ll have a steady source of regular rental income.
- If your tenant decides to walk away, he/she will forfeit the extra money that was being paid toward the purchase of your home.
- If your tenant decides to back out at the end of the contract, you’d need to go through the entire process of finding a potential buyer once again. Contacting a “sell my house fast NJ” company would be a smart move to avoid that hassle.
- If the value of your home increases considerably during the lease period, you’ll lose the additional money when selling the home at the end of the contract. In that case, partnering with a “we buy houses in NJ” company could prove to be beneficial.
As you’ve understood from the above, rent-to-own home agreements come with a fair share of pros and cons for both buyers and sellers. Therefore, it’s absolutely important to assess both sides of the coin before making a final decision. However, from a seller’s perspective, contacting a “we buy houses in NJ” company seems to be the best option if you don’t want to take any chances.