The rent-to-own scenario can work out for both the buyer and the seller

The real estate market has led to some creative financing techniques, one of which is a rent to own scenario.  I’ve noticed that here in Sevier county we’re seeing more retn-to-own scenarios proposed to sellers and to buyers who may have trouble getting a loan in todays’ tough lender marekt. While rent-to-own has been around for a long time, today it is helping many nervous sellers get a deal done.  In essence the rent-to-own scenario is seller financing.  It is important to work the specifics out in a rent-to-own situation.  Items that need to be addressed are:

• The percentage of the rent that goes toward the down payment
• Which party pays for major repairs to the home
• Which party takes care of the basic upkeep of the property
• What happens to the down payment money if the buyer changes his mind

A typical rent-to-own scenario takes a portion of each months rent to put toward a down payment on the home.  As soon as the down payment money is collected and reached its goal then the potential buyer can qualify for a mortgage.  The seller has to cover his bases so that he is not out if the buyer changes his mind while at the same time a buyer has to look out for his best interest as well.  If planned accurately and followed through diligently the rent-to-own scenario can work out well for everyone.

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