What Is The Purpose of Rent-To-Own?

Are you thinking about buying a home, but aren't ready to make the financial commitment yet? Maybe your credit rating isn't quite where you want it to be, or perhaps you don't have the savings to provide a down payment. If either of these situations apply to you, we may have great solution for you: renting to own.

What Is The Purpose Of Rent-To-Own?
A rent-to-own agreement is similar to a car lease. Buyers agree to rent a home from the seller for a specified amount of time (generally one to three years). At the end of their lease, the buyers will have the opportunity to buy the home or walk away from the arrangement.

Typically, the agreement requires that the buyers pay a little bit more in monthly rent than a regular renter would pay, but that extra money is put towards the purchase of the home at the end of the lease. If the buyer chooses to back out of the agreement and not purchase the home at the end of the lease, the sellers will get to keep the extra money.

Rent-To-Owns Benefit Everyone
Rent-to-own homes offer unique benefits for both the buyers and the sellers that can make them an attractive alternative for people thinking about buying or selling homes at the Lake of the Ozarks. Here is a quick look at some of these advantages.

 Buyers:
  • You don't need to put a lot of money into a down payment.
  • Your credit rating does not have to be as high as it would be to get a mortgage loan.
  • You already have some equity built up when it is time to buy the home (so your total purchase price will be lower).
  • If you decide to walk away from the agreement, your only consequence will be losing the extra rent payment.

Sellers:
  • If you are having trouble selling your home, offering a rent-to-own option could help your property appeal to a wider range of buyers.
  • If the buyer chooses not to buy your home at the end of the agreement, you get to pocket the extra rent money.
  • Your purchase price is already locked in, so you won't suffer if the market drops during the course of the lease.
  • Because your tenants are future owners, you can trust them to take better care of the property.

Questions? We Can Help!
Do you have questions about the rent-to-own process? Feel free to contact our Lake of the Ozarks real estate office any time - we would be happy to help you out in any way we can! Our number one goal is to help you find your dream home at the Lake of the Ozarks. We look forward to working with you!

 Stay connected with Gattermeir Davidson Real Estate, LLC!

2011 REALTOR Salesperson of the Year
Missouri Association of Realtors

Gattermeir Davidson Real Estate, LLC
752 Bagnell Dam Blvd., Suite A
Lake Ozark, MO 65049

Office | 573.365.1555
Fax | 573.365.1766
Location: Lake Ozark, MO 65049, USA

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