Personal Finance Tip of the Week: What are the pros and cons of renting to own?

Rent to own is a way to buy or sell something over time, giving the buyer and “option” to purchase at some point. Under this agreement, the buyer and seller agree to the possibility of a sale at some point in the future, but ultimately the buyer, or renter, makes that decision if it will actually take place. In the meantime, the buyer makes payments to the seller, and typically these payments reduce the money needed to buy the house at the later date. Here are some pros and cons of engaging in these arrangements to consider for buyers:

Pros:
Lock in a purchase price
Build equity
Buy with bad credit
Test drive the home before committing

Cons:
Slow progress
Less control over the property
Falling prices on home
Scams