Selling your house in Georgia with a rent to own agreement can have many benefits.
If you are having trouble selling your house, try this trick, here is why…
Why rent to own a house you are selling? Everyone wants to sell their Georgia house for cash the day it goes on the market, but that is not realistic. For some Georgia house sellers, that is not going to happen, no matter how hard they try. Many people have a fear of becoming a landlord, however, the rewards of selling a Ga house rent to own can be much greater than that of a standard rental property.
More Qualified Buyers
Using a rent to own agreement to sell your house in Georgia gives access to a lot more buyers. These buyers that can’t buy a house any other way will be glad to give your asking price if they don’t have to go to a bank for a loan.
Selling a house rent to own is not just for people with bad credit. There are many reasons a buyer can not get a bank loan. For example;
- Self-employed professionals that don’t get a formal w-2 (Attorney’s, freelance bookkeepers, contractors, truck drivers, etc.)
- Employees that have not been at their job very long
- Young people that have not established credit yet
- And yes, people with bad credit
These people are more than able to pay for a house, they just don’t look good to a bank.
Faster Sale of Your House
Offering a house with rent to own financing brings in more buys. On average, you bring in 50% more buyers then you would with just a cash sale. This creates more competition and makes your house sell faster. For many people, you are the only choice they have because your offering financing.
A down payment or option fee is often required with a rent to own sale. We usually ask for 10% up front. Remember that if your buyer is having trouble coming up with a down payment for a traditional mortgage, they might have trouble coming up with a large down payment for you. Keeping this fee low or asking for multiple small down payments can help you attract more potential buyers to your property. That said, you do want to include an option fee as a sort of security deposit to make sure your buyers don’t simply walk away from the property.
Get Your Asking Price
Rent to on sales bring in people that don’t have the “gold” (he who has the gold makes the rules). If they are getting terms they can afford, you should get the asking price.
Properties that sell in the traditional manner are often sold for much less than they were originally listed for. Once the repairs and negotiations are completed, homeowners will often find they aren’t making anywhere near as much as they expected.
Consistent Income Each Month
If you don’t need the money right away, selling your Georgia house rent to own will provide a steady income you can live on. Since you are probably selling the house with a portion of the rent going to the purchase of the house, that means your getting more for the house then just the asking price.
A rent to own agreement with a tenant/buyer can be lower risk for you too. Qualified tenants intend on buying the property. They want to keep the house as nice as possible as they will eventually be the rightful owner. If anything, you are likely to find your tenants fixing up the property as opposed to wearing it down. If the buyer defaults on their payments, you may lose your tenant/buyer, but the down payment should be enough to pay for the foreclosure. Simply take the house back and sell it again.
We love to buy houses with owner financing. If you have a house you are willing to sell rent to own, contact us.