Selling property using a rent to own agreement is becoming increasingly popular with homeowners ! The process is underutilized and can be beneficial for both the buyer and seller when structured properly. Learn more about how to do it in our latest post!
While a rent to own sale may not be the first thing you think of when selling your house, it can be a beneficial option in the right situations! If you want to open the door to a whole new market of buyers, consider the many benefits a rent to own agreement can offer you!
How Does It Work?
When a tenant or buyer enters into a rent to own agreement, they are agreeing to lock in the purchase price and either pay your monthly mortgage, taxes, and insurance or if you do not have a mortgage, it’s a great way to make passive income. Once the rental period has elapsed, the buyer purchases the home through a mortgage and typically will pay for all the customary closing costs as well.
Term of The Contract
When a homeowner and a tenant enter into a rent to own agreement, there are a number of terms that will need to be agreed upon before the contract is signed.
How long will the tenant be able to rent the property before a purchase? Typically, the rental period will last 1-2 years.
To some extent, the seller is doing the buyer a favor by allowing them to rent before actually buying. While the process has many benefits for the seller, a rent to own agreement will open the door to home ownership for people who likely wouldn’t have been able to do it otherwise.
Typically, the tenant will handle the maintenance of the property during the rental period. This should be discussed between the buyer and seller and detailed within the contract.
The tenant will also likely take on the property tax payments. This alleviates a large cost for you as a homeowner.
The purchase price is agreed upon upfront and the buyer is willing to move into the property on an “As Is” basis which means you do not need to make any costly repairs or upgrades that are typical when listing with a realtor.
What Are The Benefits?
Get Your Asking Price
When you use a rent to own contract to sell your house, you are not giving away an automatic six percent to real estate commissions and typically you will not have to pay for any customary closing costs as well.
Purchase Price is Locked
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.
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”.
No Real Estate Commissions
You get to keep the equity that you have earned and save money by not having to pay any real estate commissions.
How Do I Get Started?
Reach out to us today, and Local Home Investment will send you our Rent to Own offer and lock in your purchase price. Please take a moment and click the link to fill our our property condition sheet or call us at the number below. Property Condition Sheet (Click Here)