How Much Should You Pay for Rent to Own Homes in GA?

The right rent to own homes in GA could be your key to home ownership, even if you don't have the best financial situation or you're not certain you want to stay. After all, the flexibility and convenience of these agreements make it easy to rent or buy over the course of two or three years. Unfortunately, many rent to own homes in GA are poorly priced or include bad terms that could cost you a lot in the long run. When you enter this kind of contract, paying attention to pricing is a vital strategy.

Purchase Prices for Rent to Own Homes in GA

Many people entering rent to own agreements make two big mistakes. The first one is assuming that the purchase price is set in stone. In fact, you can negotiate the price for a rent to own property the same way you'd negotiate for any other home. The second most common mistake is to enter a deal where the purchase price isn't stated up front.

This kind of situation means that the price of any rent to own homes in Savannah or other cities could fluctuate greatly. You might end up paying a lot more if the housing market changes in the future. Instead of putting yourself at risk, make sure your landlord states the purchase price right away. If you're worried that the house might devalue over time, include a clause that says you can have it reappraised shortly before you buy.

Fair Lease Option Fees

In addition to the actual price of the home, your contract should state your lease option fee. This is a payment, often made before you move in, that obligates your landlord to allow you to buy the house. In most cases, it should come to about 1 percent of the total cost of the home. If you decide to buy, this fee should be creditable to your down payment. In most cases, you will forfeit this fee if you decide not to buy.

Rent and Rent Credits

It's important to plan for the long term when it comes to rent to own homes, but you shouldn't ignore your monthly payment. In most cases, the rent you pay for a home you plan to purchase should be equivalent to the going rate in your neighborhood. Take the condition of the house and any extra responsibilities included in your lease into account, and remember that around 10 to 15 percent of your rent should be creditable to the down payment. If your landlord wants to credit a smaller percentage, he or she may be taking advantage of your interest in the property.