Previously we discussed what it meant to enter into a rent to own a home in RI agreement. At Realty Quarters, we have ***5 STAR*** RI Realtors ready to discuss the pros and cons of the rent to own a home in RI agreement. After reading our previous segment on this topic, we are sure the concept of rent to own in RI could appear to good to be true. Maybe it is and maybe it isn’t. A rent to own a home in RI agreement is a complex contract that should only be reviewed with your RI Realtor. The decision whether to enter into a rent to own a home in RI agreement is unique to each client’s situation. Contact us today to begin!
Rent to Own a Home in RI Experts
What does it mean to be a rent to own a home in RI expert? Being a rent to own a home in RI expert means being familiar with the concept of rent to own in RI. Further, a rent to own in RI expert needs to be able to negotiate the terms of the rent to own agreement so that they are favorable to our client. Contact the rent to own a home in RI experts above for a free consultation. Is rent to own in RI a good idea for you? Below our RI Realtors discuss the pros and cons of the rent to own a home in RI agreement.
Pros and Cons of the Rent to Own a Home in RI Agreement
In a follow up to our rent to own homes in RI page, our RI Realtors will now discuss the pros and cons of rent to own homes in RI. What is a pro and con? At Really Quarters, we say a pro is any benefit that can be derived from a RI real estate transaction. In contrast, a con would be a potential problem or issue a rent to own a home in RI client may have.
We have identified two pros and two cons to entering into a rent to own a home in RI agreement. The first benefit is peace of mind while the second benefit is no need to worry about your credit score. The first detriment to entering into a rent to own in RI agreement is the potential to lose money while the second detriment is the potential need to take on repairs.
Try not to get overwhelmed. We know this process can be confusing, especially if you are a first-time homebuyer. The pros and cons to entering into a rent to own in RI agreement mentioned above will be discussed in more detail below. Once you have finished reading this page, if you still have questions about the pros and cons of rent to own in RI agreement, call a rent to own a home in RI expert at 401.757.0003.
Peace of Mind and Credit Repair Nature of the Rent to Own in RI Agreement
Who doesn’t like peace of mind? Peace of mind can be invaluable in RI real estate transactions. It is no secret, the RI real estate market is hot. With market conditions being the way they are, RI real estate prices and values can fluctuate routinely. When our RI Realtors meet with our clients considering a rent to own a home in RI agreement, we lead with peace of mind. What is peace of mind in a rent to own a home in RI agreement? Due to fluctuations in market conditions, the agreed price on the house subject to the agreement does not change regardless of market conditions. If the value of the house increases significantly during the rent to own a home in RI agreement, the purchase price stays the same and the increase in value cannot be used to void the agreement. Unfortunately, the opposite of this is also true. If the home declines in value, the buyer cannot use the decline in value to void the rent to own a home in RI agreement.
If you need time to repair your credit, the rent to own a home in RI agreement may be for you. If your credit has suffered due to past financial hardships, obtaining a mortage can be difficult. All hope is not lost. Sometimes, credit can be repaired in six months or it can take a few years. Luckily, the time you need to repair your credit can be factored into the term of the rent to own a home in RI agreement. For example, in order to obtain a mortgage you need a credit score of 680 but your score is 600. A credit analyst says that it will take you twelve months to bring your score up to 680. Our rent to own a home in RI experts will negotiate a contract term of twelve months where you can raise your credit while at the same time paying monthly toward the equity in your new home. At the end of the twelve months, if all the terms have been fulfilled, the rent to own a home in RI agreement terminates and the home becomes the new owners.
Money Loss and Repair Issues with Rent to Own a Home in RI Agreements
A lot of our rent to own a home in RI clients ask us whether they can lose money by entering into one of these agreements. According to our rent to own a home in RI experts, the answer is yes. Earlier we discussed the concept of market conditions increasing the equity in a home. Unfortunately, that is not always the case. Suppose the same real estate clients above enter into a rent to own a home in RI agreement where the house is valued at $350,000.00. However, rather than having a market that causes the house to increase in value, the market now drops the value of the house to $300,000.00. Based on the rent to own a home in RI agreement, our real estate client takes possession of a new home with $50,000.00 in negative equity. You can see how a down RI real estate market can hurt someone who enters into a rent to own a home in RI agreement.
Home repairs tend to occur when it is inconvenient for them to do so. When a RI real estate client enters into a rent to own a home in RI agreement, they run the risk of having to cover the expense of home repairs. In the rent to own a home in RI agreement, the homeowner will often include a paragraph about who is responsible for home repairs during the term of the agreement. Usually, it is the new buyer who bears responsibility for these costs. Home repairs can include roof repairs, foundation cracks, and electrical and/or plumbing issues. In a rent to own a home in RI agreement, the cost of these repairs can add up over time. If the RI real estate client enters into a rent to own a home in RI agreement and is responsible for home repairs, the cost of the repairs could contribute to negative equity. Negative equity can be an unfortunate consequence of entering into a rent to own a home in RI agreement.
The rent to own a home in RI experts have no doubt that rent to own agreements can be confusing. That is why we are here. Contact us at your convenience to schedule a free consultation. Our RI realtors are happy to meet with you and answer all of your rent to own in RI questions. Don’t let confusion scare you away from the potential to own your dream home. Call us at 401.757.0003 right now!