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Rent-to-Own: What You Should Know

With the abundance of homes available on today’s market, sellers are getting creative and offering options to make their properties more attractive to buyers. One of those strategies is the “rent-to-own” or lease option concept. This is where the seller carries the note and a predetermined percentage ¬†of the monthly rent is applied towards a set purchase price. If you’re considering a rent-to-own home as a path towards home ownership, here are three key points to keep in mind:

  • Upfront Fees: Rent-to-own doesn’t mean “no money down.” Figure that you’ll be responsible for approximately 5% of the purchase price down at the signing of a rent-to-own contract.
  • Losing Your Investment: If you fall behind on payments, you can expect to lose the up-front fees and any additional payments you’ve made towards the lease option. Make sure that you’re committed to both the area and the home purchase before signing a lease option.
  • Know Who Owns: Make sure your Realtor helps you investigate the current status of any property for which you’re considering a rent-to-own option. There have been many instances of scams where owners going through foreclosure offer a lease option – the home is then foreclosed upon and the buyer is left with no recourse and loses their investment. It’s a few phone calls for your Realtor to save you from an unnecessary headache.

As always, the staff at San Juan Realty, Inc. is here to answer any questions you might have – knowing is half the battle and we strive to give you the best food for nourishing thought as possible!

Have a safe and happy July 4th weekend!

Homes in Ridgway, Ouray, Montrose and Telluride CO from San Juan Realty Inc.

Homes in Ridgway, Ouray, Montrose and Telluride CO from San Juan Realty Inc.

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