Thursday 25 September 2014

Benefits to Buying Rent to Own Properties

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Staging Your Home for Sale

If you are a seller with a home on the market, you’ll want to pay special attention on how you present your property to potential buyers in order to maximize its interest and appeal. Focusing on the design, organization and aesthetics of your home as part of your pre-sale preparations is known as home staging.
 
Benefits of Home Staging
 

Staging can be extremely beneficial for sellers in terms of making a home more attractive to interested buyers, especially if done correctly. A properly staged home can sell quicker and for a higher price than a home presented as is, so it’s worth the extra time to make your property look its best. Additionally, staging your home puts you in the mind of a buyer, and you are forced to see your property as a buyer will. Though it can be a little bit of extra work, staging can be fun and will likely pay off in the end.

How to Stage Your Home

Rent to own properties can be a great way to purchase a home without using the traditional methods of mortgages and bank loans. Unlike a standard home purchase, in a rent to own transaction the seller and buyer agree on a possible sale at some time in the future. There’s no guarantee of purchase, but the renter’s payments are usually used to reduce the overall cost of the purchase, should they chose to buy the home. There are significant benefits to buyers who use this method to purchase a home, in addition to the standard benefits of home ownership like tax deductions and financial security.


How it Works:


As a buyer, you will agree to certain terms with the seller, and sign a contract. A lease option premium will grant the buyer the right to purchase the home in the future. While these payments don’t require a purchase, they are usually not refundable. However, if the buyer does choose to purchase the home, the premium can be applied to the purchase price. The purchase price is decided upon by the buyer and seller, and is set in the contract, granting the renter the option to purchase the home at that price regardless of current market value at the time of sale. Finally, the buyer/renter makes monthly payments to the seller, of which a portion is applied to the final cost of the home, reducing the amount the buyer would have to finance.



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