A great way to get your asking price for your San Antonio house, is by selling via rent to own agreement. Many sellers do not realize just how valuable the process can be. Learn more about how it works and how it will help you here in our latest post!
If you have had trouble selling your house in San Antonio or even if you haven’t managed to acquire an offer reflective of your asking price, a rent to own sale may be a wonderful option for you. If you do not need the money from the sale instantly, a rent to own scenario can be among the most lucrative methods to sell your residence.
How A Rent To Own Agreement Works
A Rent to own agreement is entered into between a buyer and seller and may provide benefits to both parties. The purchaser will agree to lease the property for a specific period of time before they purchase outright with the support of a traditional loan. During the lease period, the rent will probably be greater than the industry average and there will ordinarily be a deposit made upfront. This helps to guarantee the tenant won’t just walk away when the lease period has elapsed. The tenant is given 1-3 years prior to the purchase will have to be made. The sale price could be negotiated up from or be based on market information at the time of this sale. By agreeing to a price today, you’ll have the ability to get your asking price, plan for the future, and continue to make a passive income over the next couple of years.
Perks for the buyer:
- The ability to purchase without a down payment
- the ability to buy with bad credit
- The ability to lock in a price for the house at the current rates
- The ability to try out a house before committing to buy it
Perks for the seller:
- Get their asking price
- Guaranteed income for the whole period of the lease
- Money up front
- Ending some holding costs for items like taxes and upkeep
How To Set One Up
There are many standard boilerplate agreements you can use to cover the fundamentals. Additional terms and any other details must be added to the contract for a layer of protection. You are going to want to make sure you’re covered if something goes awry. Before implementing the final agreement, have your lawyer look it over to make sure all bases have been covered.
Some specifics you will want to include are:
- The amount paid in rent each month
- The amount of the down payment to be made upfront
- The amount of the option fee
- The length of the lease before the sale has to be completed
- Penalties for late payments
- Penalties for defaulting on the agreement
- Tenant and landlord obligations for repairs, taxes, utilities, and other ownership costs
- Contingencies for canceling the sale
There are a number of other things you may include in your rent to own agreement, but the above items should be at the top of the list. Consult your lawyer, agent, or consultant about whatever you may have overlooked on your agreement.
How To Get Your Asking Price
When You enter into a rent to own agreement with a buyer, the selling price is typically determined right then. Doing this will permit you to receive your asking price for your house in addition to locking in the sale price for the purchaser. Prices could grow dramatically, but they will still have the ability to get in the agreed upon price.