In the old days of the real estate market, sellers would always choose to sell their properties with a flat sale; sellers wander buyers that bought their properties in a few payments. This made it hard for those who wanted to buy but didn’t have enough money. In those days sellers rarely agree to rent to own contracts, because the real estate market was very lucrative and fast pace they needed to make the big bucks now not later; but thanks to the economic recession, sellers suddenly found it harder to sell in one fell swoop. The buyers that paid in full was becoming an extinct race, this resulted in to more sellers agreeing to a lease to own statement.
A rent to own homes agreement is an agreement where a buyer pays the lender periodical fees until the full value of the commodity has been reached. These agreements usually occur with high value and high priced items such as expensive cars and house and lots. For house and lots buyers put out an initial deposit then pay a periodical fee after that. The periodical fee usually includes a percent of the total price of the house with the interest included and sometimes a renting fee. If the borrower was able to fully pay for the total value of the house and lot then the commodity is theirs. In short a lease to own is an agreement where a borrower pays until full ownership is achieved.
Lease to own contracts may seem to only benefit buyers, but sellers also gain their own benefits. One of the benefits is its availability in the current market standing. Since more and more people are suffering from the recession, even those with good credit may find it hard to find a loan that will be able to pay for the house outright; more and more people are resorting to buy houses with lease to own methods rather than paying for it in full. This also makes it easier for the sellers to get sales; sellers won’t need to suffer from monthly droughts because they get periodic payments. A seller that has highly desirable properties can easily move properties around; even though the sellers don’t get the big paydays, they still are able to get the full value of the house. This proves as a big advantage for those with properties in undesirable locations, they are making their properties more available and easy to obtain.
The advantage this brings for buyers is basically the ease of spending. In the old days buyers had to apply for loans or mortgages to fully pay for the property; buyers would be harassed by the interest rates. With a lease to own strategy the buyers can easily control their spending and won’t need to resort to applying for huge loans. This also allows sellers to instantly move in to their new homes, no need to wait for long periods of payments before being able to settle in. A lease to own strategy really benefits both the buyers and the sellers.