What To Expect When Buying A Rent To Own Home In Orange County

Buying a rent to own home in Orange County will help you purchase your dream home, even if you aren’t quite ready today. In our latest post, we will offer guidance on what you can expect during the process so you don’t find yourself stuck with any surprises.

Smart sellers all over the Orange County area are discovering how selling via a rent to own contract can be beneficial for both buyers and sellers. By using a rent to own contract, the seller opens up the door to all kinds of new potential buyers. In turn, buyers will be able to put down roots, with time to save up and restore their credit. The risks of a rent to own agreement are often highlighted, but when all goes to plan, the process can be beneficial for everyone involved.

How It Works

The terms of a rent to own contract can vary based on what is agreed upon by the buyer and seller. That said, the general process is pretty standard. The buyer and seller will enter into an agreement stating the tenant will lease the house for a specific period of time, purchasing the property outright once the lease is up. While any amount of time may be agreed upon, the tenant will usually rent for about 2 years. This allows the buyer time to prepare financially. and get their credit in order if needed. If you aren’t confident you will be able to do this in the two years provided, a rent to own contract isn’t for you.¬†However, if you are confident you will be able to buy at the end of the lease, a rent to own contract may be very beneficial for you in the long run.

During the rental period, the tenant will usually pay an increased rent, with a portion of it going toward the down payment on the home. There will be a payment upfront to secure the tenants intent to purchase the home. If they should default, the owner will be able to keep the deposit and increased rent paid. If the tenant should fulfill their lease obligation, they will then be able to buy the house at the predetermined price. Most of the time, prices are agreed upon before the lease is signed. This can be beneficial for you should the market go up before the sale is final.

Pros and Cons

While buying a rent to own property is the perfect choice for some buyers, others will experience disappointment at their inability to qualify for a traditional mortgage right away. There are many other pros and cons too, including…

The Good

  • You’ll have a sense of pride knowing that someday soon, that house will be yours
  • You will have a chance to save money and repair your credit
  • You’ll be able to begin putting down roots right away
  • You won’t miss out on the home of your dreams
  • You’ll build equity instead of just renting
  • Locking in today’s price will save you money

The Bad

  • You might be paying higher than average rent
  • Something could go wrong with the house after you move in

All in all, using a rent to own contract to buy a house in market_city] can be beneficial to both the buyer and seller. Before signing any contracts, make sure all the details are covered. You’ll want to include contingencies in case something goes majorly wrong with the home. You don’t want to be obligated to buy a house with mold problems or something similar.

 

To learn more about buying a rent to own home in Orange County, reach out to us today! 949-625-4533

Joe

Broker/Realtor/Investor/Mentor (41 years experience) Specialties: Buyer's Agent, Listing Agent, Foreclosure, Short-Sale, Property Management, Landlord I'm a Full Time Real Estate Professional, house flipper and mentor to many of my clients. I am here to help you get top dollar for your home or get you the best price for a home that you are going to live in. I have over 40 years of real estate experience for you to draw on and actively list and sell over 20 homes a year. I have sold over 600+ homes in the last ten years alone. I am a very skillful negotiator and will work diligently to help you realize the best possible price when buying or selling your home. With my Exclusive Home Acquisition & Sales System, I can find the Right Home for You! I have access to homes no other Realtor will show you. I can show you how to save an average of $10,000.00 on the purchase price. We will find a home that fits your needs, in a neighborhood that suits your style. If you are selling your home then I can bring all the professionals to you. I always include professional photos in ALL my listings. I have contractors standing by to assist with those upgrades if needed. I can also quickly get you ALL CASH offers for your home if you desire. My marketing surpasses all other agents. It begins with extensive internet advertising to hundreds of websites throughout the world. I do direct mail marketing for you home and also knock on doors in your neighborhood when I am holding an open house. I hold you home open to expose it to as many buyers as possible. My Exclusive program is designed to sell your home for Top Dollar in Any market. I am an experienced flipper here in Orange County and therefore can offer you my over 40 years of real estate experience. The information is available to you at no charge! If you like what you see, please call me and setup Your Free Consultation.

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