According to Bankrate, in July 2024, the median sale price of homes in Utah was $559,200, an increase from the previous year. If you're worried that sale prices might prevent you from purchasing property, consider rent-to-own homes.
An affordable rent-to-own home can make it easier for prospective homeowners in Bountiful, UT to buy a home. Similar to leasing a car, rent-to-own agreements require renters to pay owners monthly fees. They eventually have the option of purchasing their rental.
But what are the benefits and how does this process work, exactly? This article explains it all.
What Are Rent-To-Own Homes?
Rent-to-own homes in Bountiful, UT make the prospect of future homeownership that much more attainable. Although renters pay sellers similar to a landlord/tenant situation, they're eventually given the opportunity to purchase their rental. The duration of time this takes is usually around three years.
You're probably wondering about the cost of a rent-to-own home. Similar to car leases, the sale price of the house is determined at the beginning of the agreement.
It's also possible to negotiate a portion of your monthly payments to go towards the down payment of your rental, should you choose to purchase it. However, this isn't always the case, so renters should know their contracts inside and out.
Drafting a Contract
Part of investing in rent-to-own homes is understanding your contract. According to ContractSafe, 90% of professionals reportedly struggle with understanding contracts, some of them finding them impossible to comprehend. However, understanding a contract is essential for all parties involved.
Renters need to understand the exact terms of the contract before signing anything, asking the seller questions They might also consider enlisting the help of an attorney who specializes in Bountiful, UT contract law if certain parts of the agreement are unclear.
Rent-To-Own Benefits
If you feel that rent-to-own options are in your best interest financially, it's important to consider the other benefits. This includes securing a home at the current real estate market value.
There are other reasons why you'd want to rent-to-own. For example:
- You're new to your job and don't qualify for a mortgage yet
- Prospective mortgage companies need proof of permanent employment before giving you a loan
- You need more time to come up with a down payment
- You're looking to rebuild your credit score
- There's nothing written in stone saying you have to purchase the house when your lease is up
When considering a rent-to-own home, if you find that it's not the best house for you, you're under no obligation to purchase it. You're essentially test-driving a house for several years with the option of buying it and saving money in the process. But if you do love your home, you can turn your rental into your dream of homeownership.
Are Rent-To-Own Homes Right for You?
If you're considering rent-to-own homes, understand that there are plenty of benefits, especially if you're not quite ready to buy a house. When you rent-to-own, you can take the necessary time to get your finances in order, ensure the house is right for you and your family, and possibly have some of your monthly rent applied to the down payment.
Owners interested in rent-to-own homes benefit from professional property maintenance tips and tricks. PMI Mountain West can help. Get a free rental analysis today.
