Divvy Homes’ Rent-To-Own contracts are option-to-purchase agreements. Here’s a detailed explanation of how these transactions are structured:
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Option-to-Purchase Agreement:
- When a resident enters into a Rent-To-Own contract with Divvy Homes, they sign an option-to-purchase agreement. This agreement gives the resident the right, but not the obligation, to purchase the property at a predetermined price after their lease period ends.
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Purchase Price Transparency:
- The purchase price of the home is established before the resident starts their lease. This predetermined price is based on current market values and projections of future home values, providing residents with clarity and certainty about the cost of buying the home.
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Fair Transaction Pricing:
- Divvy Homes strives to set transaction prices that are fair and reflective of the anticipated future value of the home. This involves thorough market analysis and careful consideration of economic trends to ensure the pricing is competitive and reasonable.
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Impact of Macroeconomic Conditions:
- While Divvy aims to set accurate transaction prices, external factors such as changes in the economy, housing market fluctuations, and variations in appraisal values can impact the projected value of the home. These macroeconomic conditions can sometimes lead to discrepancies between the initial projected value and the actual market value at the time of purchase.
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Appraisal Values:
- An appraisal is typically conducted to determine the current market value of the property. This value may differ from the originally projected price due to changes in the housing market or other economic factors. Residents have the option to purchase the home at the agreed-upon price or choose not to proceed based on the appraisal outcomes.
By understanding these key aspects, residents can make informed decisions about whether to exercise their option to purchase and how to navigate any economic or market changes that may arise during their lease period. If you have more questions or need further assistance, please contact Divvy Homes' support team.