When buying a shirt, you try it on to see how it fits. Before buying a car, you take it for a test drive to make sure it is up for speed and performance. In real estate, there is a new feat that allows you to do a test run before investing in one. It’s called ‘try before you buy’.
Offered by leading real estate firms, this program allows a buyer to try a property if they want to find an immediate place to live in but not yet ready to make the purchase. Whether due to financial or personal reasons, this program can be an excellent option if you want to ensure you are making the right decision.
How ‘try before you buy’ works
Established real estate companies such as Chestertons provide a straightforward path to property ownership with the ‘Try Before You Buy’ program. This program allows one to sign up on a 5-year rental contract with one year of lease commitment.
Application process
If you’re having a hard time qualifying for a mortgage or want to rent a home you intend to purchase, this program might help you. The great thing with this program is that we don’t base your eligibility solely on your credit score. We take into account the credit history of your entire household, so you would have higher chances of getting approved.
The perks
In contrast with a standard lease agreement that requires a lease for one year and a security deposit, the program provides renewal options with five years of rent. It also gives you the right to purchase the property at an established price once you signed the contract.
Things to consider
Once you agree on a price in the Right to Purchase Agreement, this is the amount you’re going to pay. This is when the term of the lease is over, regardless if the home has increased or decreased in value. However, if you decide not to purchase the home, the other party can sell or rent it to others once the lease ends.
Lease agreement
If your initial lease is set to one year, your financial commitment will be limited to one year. Your lease will be renewable annually for five years. You also need to notify your real estate agent or broker if you don’t want to renew. You can get your full deposit back once you decide to vacate the home. This is given that you have complied with the terms of the lease.
Right to Purchase agreement
This agreement grants you the right to purchase a home selected based on a predetermined rate. However, in case you change your mind at the end of the, you don’t have the obligation to buy the home from the seller.
At this time of uncertainty, having options like the try before you buy allows one to make a wise decision. If you’ve been eyeing a property and want to make sure it’s ideal, consider this and speak with your trusted real estate agent.