If you’ve been searching the Home For Sale ads for any period of time lately, you may have come across a few that are labeled as “Lease Purchase” or “Rent to Own.” While these may not have been so prevalent many years ago, over the past decade or so, this option has become more popular – and in some instances, it can offer some benefits to both the potential buyer and the seller of the property.
In a lease purchase situation, the prospective purchaser will pay monthly rent to the property owner, with a certain portion of the rent going towards the purchase price of the home at a date in the future. Typically, the purchase date will be two to five years away.
As a prospective buyer, going this route could provide you with the opportunity to get into a home without having to come up with a large down payment. It can also let you lock in both the selling price and the terms of the sale upfront. Plus, because a portion of the rent that you pay each month is going towards the price of the home, you will already have some of the down payment made over time.
For home sellers, this type of transaction could also provide some nice advantages. For instance, knowing that the “tenant” you have in the home will eventually be purchasing it, it is likely that they will treat the property much better. In addition, while there is the chance that the buyer could opt out of the purchase, there is also the very good chance that you have a buyer locked in for the property, so you won’t have to go through the process of putting the home back on the market again.
If you have a home that you’re considering selling in the Bakersfield area, the first place to start is with an analysis of its value. We’ll be happy to provide that for you at no cost and no obligation, so Contact Us today.