Selling your house through the rent-to-own strategy is a great option for both the buyer and seller. The seller can collect rent and additional monies, and the buyer can try the house for a while. There are 2 different types of rent-to-own contracts: the option to buy and the agreement to buy. The option to buy allows the renter to decide whether or not they want to purchase the house at the end of the rental period, whereas the agreement to buy is a more solid contract in which the renter must purchase the home at the end of the rental period. This gives the buyer time to save up a deposit and find a financing strategy that works for them. If they are unable to qualify for the loan, and they have the option contract, this lets them off the hook and saves you from the headache of legal fees.
When selling your house via rent to own in Raleigh, you can expect to negotiate the terms of the contract in your favor. You can have the buyer maintain the property and make the repairs to the house, except for some repairs; make sure to research your local laws. You can negotiate the rental length, the amount of extra money added to rent towards the deposit, and how much the option fee will be.
When selling your house via rent to own in Raleigh, NC, you will be able to reach more people. You will have a lot of buyers to choose from since a lot of people want to “try before they buy.” This gives the potential buyer the option to buy the house after living in it for a few years, which is great news for them! They will have the chance to fall in love with it or decide maybe it isn’t the best house for their family before committing to homeownership. If they decide not to purchase it, you can turn it into a rent-to-own house again!
Higher Sales Price
You can expect to lock in a higher purchase price if the renter decides to buy the house. The buyer will be willing to pay extra just to get this great deal. Also, the locked-in purchase price can be a great sign of relief, especially if the market does not appreciate as much as you had hoped since you negotiated the purchase price.
When you sell your house via rent to own in Raleigh, you must include an option fee in the rent-to-own contract. This gives the renter the option of purchasing the house at the end of their rental term, which is typically three years. This option fee is non-refundable, even if they decide not to purchase the house. Also, there is usually an additional amount added to each month’s rent to go towards a deposit on the house, and this amount is normally non-refundable.
If you don’t need to sell your house right away, you may anticipate having a monthly income for at least 2 years, and usually 3 years if you sell it through via rent-to-own in Raleigh. This can be used to pay off your own mortgage or to add the extra funds to your investment pool for additional investments. You could also use that money to make another large purchase or to set up a savings account for something special.