One other popular question I listen to prospects is:
PC: “What are the differences between rent-to-own and rent-to-sell?”
Us: “There’s none!”
PC: “Well, if that is the situation, why not get rid of the whole “rent-to-sell” terminology? I have heard about rent-to-own, however this rent-to-sell factor is totally new in my experience.”
Well, it’s dependent on perspective. Accommodations tenant who aspires to become a buyer would use rent-to-own because the correct terminology. Example:
“I wish to rent-to-own this house. What this means is I am likely to rent the home, focus on my credit until I’m able to purchase it, after which purchase the darn factor before my lease expires!”
Many people have this some of it pretty easily.
Then there’s rent-to-sell. This has not experienced the limelight before the past couple of years, but continues to be obtaining a great deal of steam within this poor economic atmosphere. Now as increasing numbers of sellers have vacant homes sitting available on the market and qualified buyers are nowhere found, they require a brand new means to fix sell their houses.
Therefore the sellers market their houses as rent-to-sell. They need renters to lease out their properties, make their monthly mortgage repayments, after which purchase them sometime throughout their lease period. When they don’t, that’s okay. They are able to then just rent-to-sell them again once the tenants re-locate.
To simplify, buyers rent-to-own (I wish to rent after which purchase the house) and sellers rent -to-sell (I’m prepared to rent the house out and allow the tenant purchase it). It’s that easy.
A far more advanced example: A rent-to-own tenant could be searching for home sellers who’d be prepared to book-to-sell their house for them. The rent-to-own tenant would lease the home, build their credit and lower payment up throughout their lease period, and purchase it in the home seller. Then your home could be considered “rent-to-offered.”