Selling your property via a rent to own agreement is an excellent way to easily get the price you want for your house. The process is simple and you’ll likely be able to find a buyer right away, even your current tenant! Learn more about how to set it up in our latest post!
There are many reasons why homeowners are choosing to sell their properties via a rent to own agreement. If the cash isn’t needed right away, there are many financial benefits to selling your house in this manner. Below, we outline three steps to sell your property via a rent to own agreement !
Step #1 – Decide on your Asking Price
When entering into a rent to own agreement you get to lock in the purchase price of your home. Make sure to run a search on what similar homes have sold for in the immediate are which means within .25 miles and in the same neighborhood. When comparing homes make sure they are the same style, age, bedrooms, bathrooms, and condition when figuring out what you would like to ask for the purchase price, it has to be a win, win for both parties.
Step #2 – Run The Numbers
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.
Step #3 – Agree On Terms
There are many things a buyer and seller must agree to before executing their rent to own agreement. Before the buyer and seller sign on the dotted line, make sure to have an attorney look things over. Even the smallest mistake in your contract could have a huge impact on your ability to sell on the terms you had planned on.
A few of the financial details you will want to cover include:
- How much will the rent be each month?
- How much if anything, will go toward the buyers down payment?
- How long before a purchase is required?
- Who will be responsible for taxes, maintenance?
- What happens with a default?
Spelling everything out as clearly as possible from the get-go will save you from any disagreement and frustration during the lease process and when it’s time to officially sell. When handled correctly, a rent to own agreement is a great way for a homeowner to sell their house.
Local Home Investment’s Rent to Own division is one of the largest and currently has purchased homes in 38 states via our Rent to Own program. Lock in your Purchase Price today by clicking the property condition sheet or call the number below