Are you thinking about buying a house in San Antonio? Using a rent to own agreement can help you make your dream a reality! Learn more about how the process works in our latest post!
Many people do not consider using a rent to own agreement. They may think that it will be too expensive or that they will be ripped off in some way, but this is not the case. When you work with a professional to create an ironclad agreement, you will be able to purchase your dream home. In some cases, your home can appreciate in value while the deal is still going on, giving you an edge! In our latest post, we will learn more about how the rent to own process works, why people choose this way of buying, and what to look for when buying a house through rent to own in San Antonio?
Why Rent To Own A Home In San Antonio?
When you use rent to own to buy a house in San Antonio, you as a buyer receive many benefits. Many people don’t consider this option when buying a home, but it can actually be very beneficial. Here are some of our favorite benefits.
- You will be able to lock in today’s prices since the purchase price is agreed upon beforehand. Real estate can increase in value over the course of your transaction, and if that happens, you are the one who will come out ahead. Please note that in some contracts the purchase price is not agreed upon until after it takes effect, in which case the price will be determined by the current market value.
- You can test a house for a year or two before buying it if you choose a lease-option agreement.
- Instead of waiting until prices go up while you get your ducks in a row, you’ll be able to buy a home today.
- Instead of just wasting your money on rent, you’ll be investing it in something each month.
- It will be easier for you to buy a house right away without having to come up with a traditional down payment
- It is still possible to buy a house with bad credit if you choose rent-to-own
Buying a house under a lease-option agreement can be beneficial for both the buyer and the seller. If you’re ready to buy a home in San Antonio, check out all the benefits that buying a home via rent to own can offer you!
How It Works
Most rent-to-own agreements are straightforward, but all of the variables can be negotiated. A typical rent-to-own agreement looks something like this:
- Initially, you must make a small down payment. This amount is usually non-refundable to ensure that you continue with your home purchase.
- Typically, you will make a monthly “rent” payment to the owner. It might be a little higher than the traditional rent, but nothing astronomical.
- Depending on your agreement, a portion of your monthly rent payment may be applied toward the purchase price.
- After 2 years, or whatever timeframe you agree to, you will be able to buy the house. If you have a lease-option agreement, you will have the option to buy. If you have a lease-purchase, you’ll need to be able to qualify for a loan and close at that time.
- It is typically the prospective buyer who is responsible for things such as maintenance, repairs, and taxes, though every contract is different.
Each contract can be entered into and processed slightly differently. Once the buyer and seller agree on the terms, the deal will be very valuable to both parties.
Finding The Right Situation
Ideally, the rent to own process benefits both the buyer and the seller. The buyer will be able to fulfill their dream of buying a house, and the seller of the house will be able to get the asking price while earning a steady income for the next two years. This type of agreement can be ideal and very beneficial for all parties involved.
However, it’s very important that you understand all the fine print in your agreement. You don’t want to find out that a late payment voids the contract or that you’re liable for taxes and other expenses when you didn’t expect to pay them. When you’re thinking about buying a home in San Antonio, contact Lone Star Real Estate Solutions LLC for all the details about the rent to own process!
We are happy to help you find the right property, create your agreement, and answer all of your questions about the process!