Some hopeful homeowners will enter a rent-to-own agreement in which a fixed rental period is followed by an option – or, in some cases, a mandate – to purchase the home. Specifically, a lease-option agreement allows prospective buyers to “test out” a new home and/or a new area before deciding whether they want to purchase the home or not.
This might be an appealing option if you’re unsure of whether you should buy a house, but rent-to-own agreements come with potential risks, so weigh your decision carefully.