Rent to buy property is what most people consider as their second option if their housing loans are turned down. The truth is rent to buy property doesn’t really deserve to be a second placer. There are many benefits and less hassles from a rent to buy property deal than the usual buy and sell of property through real estate companies.
This article will enumerate the most common, and what most people (who prefer rent to buy property method) are looking for to benefit from this kind of agreement.
Some sellers who want to sell their properties just do it by means of FSBO or what is commonly known as For Sale By Owner. This is due to the fact that most of them do not prefer the presence of a real estate agent, which would definitely mean an additional expense on their part. So for those who want to keep as much as possible of the proceedings they will earn from the sale, they will just sell their properties and do the transaction without the presence of any agents to mediate with the deal.
The same scenario usually happens to a buyer. Buyers who are desperate to buy a house and other properties often seek the assistance of real estate agents thinking that aside from a much easier and more convenient deal, they think they will get a big discount, according to what the agent tells them. With that, the buyer will immediately take the opportunity of what he thinks will be a big savings on their part; without actually realizing that they will just spend more due to the commissions or fees that the agent will require later on.
Actually, even a rent to buy property deal sometimes happens with the presence of a rent to buy property investor. Most of them, also ask for additional fees in a form of commission that they will get in exchange of a successful sales transaction. With the promise of a faster and more convenient transaction, this kind of agent often gets a high percentage of commission just as the usual real estate agents get.
This is the reason why most people who want to sell or buy properties do it through direct marketing. Direct marketing, through the rent to buy property concept happens when the transaction will happen only between two parties involved – that is the buyer and the seller. No other party, such as the real estate agent, or a rent to buy property investor will be involved in the agreement.
Another good reason why most buyers prefer to buy using the rent to buy property method is because less qualifications are required compared to what the bank and lending companies require. Usually, a proof of stable employment or income is the only proof that the seller requires of the buyer on the rent to buy property agreement.
Whenever buying a property through the rent to buy method, be sure that the property you are going to purchase has all the legal documents that the seller must present as a proof of legal ownership with the property being sold. This is very important so that you will not encounter any troubles later on when the property will be finally transferred to you.
Just like any other contracts or deals, the rent to buy property concept has also some risks. What the buyer and the seller should always remember is that they should make all things clear and all questions answered before proceeding to the agreement.
By monikazoran from Pixabay