If you are a buyer and looking to not only rent to but be a home owner a rent to own or lease option may be a good option for several reasons:

1. Timing. You are well qualified but for a variety of reasons the time is not right to actually purchase. Maybe you are a doctor on a residency program and just don't have the income. You are new to the area and would like to rent then purchase.
2. Credit issues. There are a lot of buyers with damaged credit and need time to repair it. Renting a home then purchasing it allows you time to repair your damaged credit, build some equity in the home and not have to move twice.
3. Downpayment: You have no money to buy a home. Financing regulations have tightened and now just isn't the right time for you to purchase a home. A lease option or rent to own allow you time to build a downpayment. Maybe it's a portion of your rent going towards your downpayment or having a low enough rent payment to actually save up the money you need.

In the current econonmy the options are better for buyers because of unsold inventory and motivated sellers. They are looking for other options to move their properties. 

1. Do you have an agent on your side looking out for your best interest? You can and should have an competent buyers agent looking out for you to help you structure the best deal possible. They can:

• Negotiate the best price and lease terms possible. In a rent to own scenario the buyer is in a weaker position then a normal purchase but that doesn't mean you can't negotiate. Having a skilled negotiator on your behalf can enchance your position. When I negotiate I want the seller to know about the other options we are looking at and look for ways to put pressure on them.
• Structure the terms to be most advantageous to you. Does the seller want to make you responsible for the taxes and insurance? Can you still pay the market rent but keep that burden on them? What about an incentive to close sooner then planned? How much of the rent is being credited towards the purchase price? Can we do a seller contribution towards your downpayment?

     2. Should you do a lease with an option or a rent to own? Do you just rent and when the time is right ask the seller about purchasing it and then enter into a contract then when you are actually getting close to being able to buy it? Their are pros and cons to each of these and need to looked at for your exact situation. A blanket anwer isn't appropriate because it depends on the each deal and the scenario for the buyer and the seller. Keep a few things in mind:

• If you do a lease option you are making payments towards the purchase. Sellers love this because the more money you have in the deal the more likely you are to purchase it.
• If you are putting more money into the deal then  you may be in a better position to negotiate some other benefit.
• Think about insurance claims and large repairs. Who is responsible for storm damages? Who pays for a new furnace if it breaks? What is the seller just wants to do the minimal to keep it running but you know it is time for a new one?

   3.  What happens if the seller runs into financial problems and stops making their mortgage payment? I have seen situations when there is a lease option but the seller hasn't been paying the mortgage or the real estate taxes and has just been taking your rent. Then the bank can end up owning the property and evict you. A compent buyers agent knows how to look out for this situation and to keep tabs on the seller to help avoid this worst cast scenario.

At Revealty we specialize in working with buyers and can help you find these homes and navigate your way thru the process. If you are interested to see if this is appropriate for you our contact info is at the bottom of the page.