A recent report in the Wall Street Journal (reposted on Realtor.com) says real-estate agents are reporting that affluent home buyers are using rent-to-own deals to finance their homes. Interestingly, they say rent-to-own transactions offer well-to-do buyers substantial benefits such as (in new construction) the ability to discover construction defects that wouldn’t might go unnoticed during inspection. In addition, they add that these transactions also provide buyers with a potent negotiating tactic.
Rent-to-own transactions offer well-to-do buyers substantial benefits. In new home purchases, they offer the ability to live in a home and discover construction defects that wouldn’t otherwise be found during a home inspection.
“Buyers of expensive homes don’t necessarily have an issue paying the price, but the cost of borrowing right now is really high, and many believe it will become cheaper to borrow, so renting to own allows them to stabilize a home’s price now, start living there and wait to close when they potentially have the option to get better financing.” Said Kirsten Jordan, an associate broker at Douglas Elliman Real Estate in New York City.
Click here to read the full story at Realtor.com.
Click here to read the full Story at the Wall Street Journal.
