Do you have a property you want to sell? For many homeowners, using a rent to own agreement will be the most profitable way to sell their home. Learn more about how it works and what you need to do to sell your house using a rent to own program!
Many sellers don’t consider the benefits of a rent to own agreement for their house. While the terms of every contract are different, there are some great perks that you will see across the board. If you don’t need the cash from the sale immediately, selling your house via a rent to own agreement might be the best way to sell your house fast and for market rates!
#1 – No Real Estate Commissions
As a seller, you are sacrificing immediate cash for a long term gain, so you will want to make sure it’s worth it. How much would it cost out of pocket today to get your home “listing ready” and make sure to add in the carrying cost of the mortgage, and utilities while waiting for our house to sell and add in the real estate commissions, closing costs, and what you will realistically sell the home for and weigh both options. If you have a lot of equity in your home this might not be a viable option for you if you need the money for your next home.
#2 – Generate Passive Income or Paydown your Mortgage
If you have a mortgage during the rental period the tenant will be paying down the balance of your mortgage and if you own the home free and clear you will be generating passive income.
No-one wants to pay two mortgages and if you have to relocate for your job you do not have to wait or hope that your house sells you will have your purchase price locked-in and your mortgage paid each month.
#3 – Get The Price You Want
Tenants using a rent to own agreement typically aren’t able to qualify for a conventional loan. Whether they don’t have the down payment, the income to qualify, or the credit score required, buying via a rent to own agreement will allow people to purchase who may not have been able to in the past. As such, by having the opportunity to buy, these folks will likely be willing to pay your asking price for the property, as long as it’s fair.
#4 – No Repairs or Upgrades needed
You do not need to waste money on new carpeting, painting, appliances, roofing, flooring and all the expenses that come with making your home “listing ready”.
#5 – Lock in your Purchase Price
Houses under a rent to own agreement agree to the purchase price now and who knows what will happen over the next two years in the Real Estate market. You will not have to worry about how long it will take to sell your house and no need to worry about market fluctuations.
Learn more about Local Home Investment’s Rent to Own program by watching our YouTube video Rent to Own You Video