Pros and Cons of the Lease to Own Option

Pros and Cons of the Lease to Own Option

Real Estate Owners often don’t find buyers for the price they are ready to sell. Also, buyers don’t want to overpay for the Property. But one option that can work for both the buyer and seller of the Real Estate is Lease. Where seller allows rent to own the property that is renting the property to the potential buyer and giving them lease to own the property on the agreed price after the number of years. If you are planning to rent on a lease in California, US then, Villa Park real estate for sale can be a great option for you. Also, there are numerous options in the US, because Leasing is common practice here.

In Lease to own real estate, the owner gives the buyer or tenant the time and price at which tenant has to buy the property through an agreement with the purchase price. Buyers or tents also need to pay a small percent of purchase price to the seller when leasing the property. By which buyer can continue renting till the time in the agreement and seller cannot sell it to anyone else, even if the buyer fails to buy it, the purchase price paid at the time of renting is non-refundable.

Advantages for Sellers and Buyers

– Buyers can rent to own and by the time get qualified for the mortgage.

– Purchase price agreed at the time of renting can save buyer’s additional cost of appreciation of property after the number of years (generally 1 to 3 years).

– Buyers can try the leasing property before buying it and relocate if they don’t like the place.

– Seller or owner can get monthly rent instead of vacant property not being sold

– Seller’s or Owner’s house will be maintained in the condition which helps the owner save the repair and maintenance cost.

Disadvantages of Leasing For Buyer and Seller

– The seller might face the risk of Depreciating property if the buyer decides not to buy. Also, Seller has to go through the same cycle if the buyer decides not to buy the property for long term agreement.

– Plan for the buyer may not work, and the buyer can lose the purchase fee that he paid at the time of leasing.