Is owning a home a farfetched dream, or is it a serious goal for you?
With home financing interest rates higher than they have been in years, you may think you have to push back your timeline for buying a home.
Have you thought about a rent-to-own option? This course of action is appealing. In a recent study, 79% of respondents said they would consider a rent-to-own contract to buy a home.
Are you a potential home buyer in Greenville, SC? Think about considering rent-to-own homes as a practical path to homeownership. Learn more as we explore the benefits and steps to homeownership.
Why Rent-to-Own in Greenville?
Rent-to-own homes allow you to rent a property with the option to purchase it at the end of the agreed-upon lease term. The period is typically 2-6 years.
This option may be more affordable than a traditional home purchase because it allows you to save for a down payment over time. This will allow you to build your credit during the rental period. Better credit may mean a lower interest rate.
Renting allows you to "try out" the home before committing to purchasing it.
Rent-to-Own Homes: Greenville, SC Market
Greenville, SC is a great place for affordable rent-to-own homes! With the housing shortage, sellers are looking for buyers who can afford higher down payments and higher qualifications, making it harder to become a homeowner.
The Greenville rent-to-own market is more affordable than the traditional housing market. It gives renters/buyers the ability to make the right home choice based on their experience living in the home before making the final purchase.
Monthly rent payments average around $1500-2200. The terms include either a lease option or a lease-purchase agreement.
A lease option gives you the option to buy the home when the contract is up. A lease purchase agreement legally obligates you to buy the home at the end of the lease term.
Potential Drawbacks and Considerations
Rent-to-own homes may come with upfront costs and higher monthly payments. The one-time upfront fee, called an option fee, is usually non-refundable. This is money you put up to be afforded the option to buy it in the future.
You can negotiate with the homeowner, but the fee ranges between 2.5% and 7% of the purchase price of the home.
Can you apply the fee to your eventual down payment? This is something you should negotiate and outline in your contract.
Be sure to understand all the terms of the contract and what will happen if you choose not to buy the home at the end of the term.
Is Rent-To-Own a Good Choice for You?
Are rent-to-own homes on your radar in your home search? The additional time to build credit and save for a down payment makes it an appealing option as a path to homeownership in Greenville. Do your research before deciding if it's right for you.
We at PMI Accelerate can help with your home search. We are a full-service real estate asset management company providing real estate brokerage services. We provide excellent customer service. Call us at 864.735.0337 for immediate assistance, or contact us through our website to set up a consultation.
