One of the many options new homebuyers may encounter in their search is a rent-to-own agreement. These agreements allow the prospective buyer to rent a property with the option to buy it down the road. There are many types of rent-to-own agreements, each with their own rules and exceptions. Here is a breakdown of the major advantages and disadvantages of this type of contract you should consider.
A Good Option for Bad Credit - If you can’t qualify for a home loan or other types of financial help, rent-to-own agreements might be an excellent choice. With regular on-time rent payments, you can even improve your credit score over time while renting. This makes it easier to get loan approval when it’s time to buy the home outright.
Lock in Purchase Price - If you’re looking for a home in an area with rising property values and prices, renting-to-own may give you the option to buy at the current purchase price and save a bundle. This way you can reserve your spot in a hot market affordably.
Test Out the Property & Neighborhood - Renting-to-own gives potential buyers the chance to try out a home before committing to buying it. This gives you time to learn about the property and the neighborhood and can give you greater peace of mind in your decision.
Possible Financial Loss - If you decide not to buy the home at the end of the rental period, you’re out of a considerable amount of money. You won’t get a refund of your investment and will need to begin the process all over again with a new property.
You’re a Tenant, Not an Owner - Since you’re technically renting the property, you face all the potential woes of the renter lifestyle. This can include minor annoyances like rules about customization and remodeling but also potentially serious scenarios like the landlord defaulting on their mortgage and losing the property through foreclosure.
Unpleasant Surprises - Renting a home before buying it will help you learn about potential issues with the property and home itself, like neighborhood noise, plumbing problems and more. However, there are some things you won’t learn until you actually buy the property, such as problems with the title.
Rent-to-own agreements can be an excellent option but also come with risks. If you’re considering renting-to-own, consult a financial advisor or real estate attorney to help you make the smartest choice for your situation.
I have provided award-winning service to many clients over the past 25 years. Few other REALTORS are as trusted as I am. My clients trust my advice, and they know that I always look out for their best long-term interests. You can expect, and you will receive personal service that is second to none. When you hire me as your Agent you work with me and only me. I will answer your calls and respond to your text messages. I promise not to hand you off to another member of "My team" like others do. When you hire Ryan, you get Ryan.
I have called Southwest Michigan home for 40 years. My mother's family ran a local locksmith service, and my father served as the Chief Investigator for the County's Prosecutor's office for many years. I love all that this area offers, and I enjoy serving the buyers and sellers who are moving in or out of Southwest Michigan.
My wife and I have two children, and we would not want to raise them anywhere else. Between the award-winning schools and the plethora of youth activities offered in Southwest Michigan, it's a great place to call home. We enjoy spending time with friends at the beach, boating, golfing, hunting, skiing "Up North," and fishing.
We give back generously to the community that has been so good to us. Currently, I serve on the Lakeshore Public Schools Foundation Board (LEF), as Past President of the St. Joe Kickers Sports Club, and as a Rotarian in the Stevensville-Lakeshore Rotary Club. We donate throughout the year to various local organizations, schools, and youth sports groups.
I want to put my experience and knowledge to work for you. Having sold more than 500 properties while earning the trust and respect of my fellow REALTORS, who voted me the "REALTOR of the Year," I am confident I can earn your trust as well.
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Ryan Arnt
Real Estate Broker/Company Owner
Keller Williams of Southwest Michigan
You can reach me anytime, call or text 269.470.6666, or email me at [email protected].
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