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 Middle 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 Middle Ga house rent-to-own can be much greater than that of a standard rental property.
1. More Qualified Buyers
Using a rent to own agreement to sell your house in Middle 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.
2. 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.
3. Cash Upfront
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.
4. Get Your Asking Price
Rent-to-own sales are a form of financing for the buyer. This adds value to the house. Selling a house rent-to-own brings in more buyers that can’t get financing anywhere else. If they are getting terms they can afford, you should get the your asking price. FYI, We will buy as many rent-to-own houses as we can. HINT, HINT.
In the upcoming market, properties are forecast to sell 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 high an offer as they expected.
5. 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. You are earning interest too. How many of you get dividends on stocks…? Same thing.
6. Low Risk
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.
Other articles that may help;
- Selling my house on terms
- Do I need an inspection to sell my house?
- Sell your house with owner financing
- Tips to maintain your vacant house