Selling your house in Washington DC, PG County, Montgomery County with a rent to own agreement can be the best way to sell fast for the price you want. Learn more about how to do it in our latest post!
When thinking about selling a house in Washington DC, PG County, Montgomery County, many people don’t consider using a rent to own agreement to facilitate the deal. A rent-to-own home – also called a lease-to-own-home – is purchased through a rental agreement with a homeowner. A portion of the monthly payments can go toward reducing the sales price of the house during the time of the lease. After that time is up – usually 1 to 5 years – the tenant will have an option to purchase the home. Selling in this manner can be very beneficial for homeowners who want to sell their houses fast and for a great price.
Set Your Criteria
While opening your house to rent to own buyers, you’ll be giving a whole new pool of people the opportunity to buy your house. That said, you can’t enter into an agreement with just anyone. You’ll need to determine what you will accept as far as credit score, downpayment amount, and length of the agreement.
You are not entering into an agreement with your potential buyer indefinitely until they are able to buy outright. Instead, you need to work with a potential buyer who will be able to follow through on their end of the deal. Even if they have the best intentions, being able to actually follow through on the agreement is a different story. Before setting up a rent to own agreement for selling your house in Washington DC, PG County, Montgomery County, make sure you know what you will accept and what you are looking for in a potential buyer.
Agree On The Terms
Once you know what kind of tenant you are looking for, you will need to find someone who will agree to your terms. You will need to agree on the rent paid each month, the downpayment amount, and any portion of the rent that goes toward the purchase of the home. You will also need to define a timeframe that works for both parties. This is not an indefinite agreement. Within 1-3 years the renter must purchase the home outright or walk away, losing their downpayment and option to buy in the process.
Create A Legal Contract
When using a rent to own agreement for selling your house in Washington DC, PG County, Montgomery County, it is crucial that everything is set up legally. You don’t want to be hit with a lawsuit or find yourself in a place where you need to file one yourself. A rent to own agreement will be detailed, covering every scenario possible as to protect all parties. Super Savvy Home Buyers LLC can help you facilitate the process, of selling your house via a rent to own agreement, making sure everything is handled legally and professionally.
Pros & Cons of Rent-to-Own for Sellers
- More buyers
- Earn income
- Higher sales price
- Invested renter
- Renter might not buy
- Earn money slowly
- Missing appreciation
- Falling home prices
- Discovering flaws
Having A Way Out
Just like a rental situation, in a rent to own agreement, you are able to evict the tenant if they aren’t paying rent or if they have violated the agreement in any sort of way. While you don’t want it to ever come to this, you should be versed in the eviction process, knowing what your rights and what the tenant’s rights are. The house is technically yours until it has been paid for in full. Until that day, you need to protect it, making sure nobody is occupying the property that will cause damage or lower the property value.