Are you thinking about buying a house in Chicago? 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 fail to consider a rent to own agreement. They might think it will be too expensive or that they will get ripped off in some way, but this is not the case. When you work with a professional to create an iron-clad agreement, you will be able to buy the home of your dreams. In some cases, your house may appreciate while the agreement is in effect, putting you ahead! In our latest post, we will learn more about how the rent to own process works, why people are opting to buy this way, and what you need to look for when buying a house via rent to own in Chicago?
When you use a rent to own agreement to buy a home in Chicago, you will receive many benefits as a buyer. Many people fail to consider this option when buying a home, but it can actually be very beneficial. Here are a few of our favorite perks.
- The purchase price is agreed upon beforehand, so you will be able to lock in today’s prices. The property has the potential to appreciate during the course of your agreement, and if it does you are the one who will come out ahead. Keep in mind, that with some contract, the purchase price isn’t agreed upon until it is time for the actual in which case the price will be determined by the current market value.
- If you opt for a lease-option agreement, you will be able to try out the house for a year or two before you buy it.
- You will be able to buy a home today, instead of waiting until prices go up while you get your ducks in a row.
- You will be putting your money toward something each month instead of just throwing it away on rent.
- You will be able to buy a house right away without trying to come up with the money for a traditional downpayment
- Even if you have bad credit, you can still buy a house via rent to own
Buying a home via a rent to own agreement can be beneficial to both the buyer and seller. If you are ready to buy a house in Chicago, explore all of the benefits buying a house via rent to own can offer you!
How It Works
A rent to own agreement is typically straightforward, however, all of the variables can be negotiated. In most cases, the process will look something like this:
- First, you will make a small down payment to the seller. This is usually nonrefundable to ensure that you are going to go through with the purchase of the home.
- Next, you will typically make a “rent” payment to the owner each month. This can be slightly higher than traditional rent, but nothing astronomical.
- In some cases, a portion of your monthly rent payment will be able to go toward the purchase price of the home.
- After 2 years, or whichever timeframe is agreed upon, you will then 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 agreement, you will need to be able to qualify for a loan and close at this time.
- Things like maintenance, repairs, and taxes will usually fall on the prospective buyer, however, all of these things can be different depending on your contract.
Every contract can be negotiated and worked out a little differently. Once the buyer and seller have agreed to terms, the transaction will be of great value to both parties.
Finding The Right Situation
Ideally, the rent to own process will benefit both the buyer and the seller. A buyer will be able to fulfill their dream of buying a home, while the home seller will be able to get their asking price while generating a steady income for the next couple of years. This type of agreement can be ideal and very beneficial to all parties involved.
That said, it is critical that you understand all of the fine print in your agreement You don’t want to find that one late payment voids the contract or that you are responsible for taxes and other costs when you weren’t expecting to have to pay them. When you are thinking about buying a home in Chicago, reach out to BAM Home Buyers to get all of 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!