How to Choose Fair Rent to Own Terms for Your Contract

Coming up with rent to own terms for the contract on your new home can be complicated part of the process. Remember to ensure that what is negotiated works for both parties.

Ask Questions

Remember to ask a lot of questions. For a general guideline, Homebuyers' List of 18 Questions to Ask Sellers can give you an idea of what you should be asking. Imagine yourself waking up in the morning in your new home, hitting the alarm clock, cooking breakfast, flushing the toilet, turning on the faucets, opening the front door to leave, coming home, sitting down in the family room, and every other detail of what you will be doing in the home as well as outside in the yard. Any questions that you can possibly think of regarding your potential real estate should be asked. Leave no stone unturned, so to speak.  

Determine Needs vs. Expectations

Now, start asking about what the sellers needs and expectations are. If you are unclear on something the current owner has expressed, ask for clarification. Your terms are going to include maintenance responsibilities, fees, costs. The contract you're creating is going to be one of the biggest portions of your life once it's signed. You will live and breathe in the home, and you need to make sure that things go as smoothly as possible.  

Make A Legal Agreement

Once you and the seller have agreed upon the terms, remember that you're not actually done yet. You will both benefit by having a professional, preferably a real estate attorney, look your documents over to make sure that you are both protected. You will be glad later, when issues arise, which they always do that you've made the terms clear, fair, and to the benefit of both parties.  

Conclusion

After all is said and done, written and signed you will have a lovely home and a contract that will satisfy both parties. You are now one step closer to buying a home!