For those positioned to hold the property for an extended time, a rent-to-own agreement can be profitable to sell your property with buyers willing to pay a higher price. A rent-to-own sale earns more because you offer the buyers an opportunity to experience all of the perks of homeownership while repairing any credit issues. Or perhaps they need the time to save for the required percentage the lender requires for their downpayment.
At the end of the agreement, you can set the terms to allow the buyers to walk away or that they will face legal action should they default on the contract. Sellers should contact a real estate lawyer to review their documents and ensure smooth sailing ahead. It’s well worth taking this extra step to avoid legal conflicts over the exact wording of your contract.
Read on as we explore five reasons to consider selling your Memphis house via a rent-to-own agreement.
Set Your Price
If you’re thinking of selling your Memphis house, you may want to consider using a rent-to-own agreement. One benefit of this approach is the ability to set your sales price higher than the current market value. You can do this because you’re taking the risk of setting a lower price in the future, typically within two years. This gives you the advantage of potentially earning more on your property while still providing a flexible and attractive option for buyers who may not have the immediate means to purchase the property outright. By offering a rent-to-own agreement, you can also attract buyers who are looking for a home but may not qualify for traditional financing. As a result, you may be able to sell your Memphis house more quickly and at a higher price point. However, it’s important to carefully consider the terms of the agreement and work with a trusted real estate professional to ensure that it’s the right choice for your specific situation.
Listing Costs
Selling your Memphis house through a rent-to-own agreement has several advantages, and one of them is saving on the costs associated with listing your property. When you sell your property through a rent-to-own agreement, you won’t have to pay commissions or other fees typically associated with listing on the MLS. This includes expenses such as professional high-quality digital photography and drone videos, prepping the property for buyers, and even paying a professional stager to help you realize the best possible sales price on the market. By avoiding these costs, you can save a significant amount of money and still have the opportunity to sell your property at a higher price point than the current market value. Plus, because you’re not listing your property, you can avoid the potential delays and uncertainties that come with waiting for a buyer to come along. By selling through a rent-to-own agreement, you can have a more streamlined and efficient selling process that benefits both you and the buyer. However, it’s important to carefully consider the terms of the agreement and work with a trusted real estate professional to ensure that it’s the right choice for your specific situation.
Buying Pool
You increase your buyer pool by selling your Memphis house via a rent-to-own agreement beyond the typical buyer on the MLS to include those in the early stages of preparing their credit and increasing their savings towards their goal of owning their own home. Additionally, as societal norms have evolved over the past few years, more and more would-be renters are opting to move towards homeownership; rent-to-own agreements open the door to this untapped potential buyer pool.
Generate Cash Flow
Along with the downpayment, you’ll be earning a higher than average monthly rent, typically including an extra payment towards the down at the end of the contract term, which is another of the reasons to consider selling your Memphis house via a rent-to-own agreement. You won’t be paying the expenses for maintenance and repair because the buyers also assume ownership responsibilities in the contract.
Faster Sale
The speed at which you can enter into the agreement and start earning cash flow is a great reason to consider selling your Memphis house via a rent-to-own agreement. Then, you can take your downpayment straight to the bank without all of the hoopla and fanfare of qualifying for conventional loans that can take weeks or even months before closing.
Let Memphis Home Buyers help you learn about selling your Memphis house via a rent-to-own agreement. A direct buyer from Memphis Home Buyers will detail what you could earn by selling rent-to-own. Let the pros at Memphis Home Buyers make it easy! With experts from every walk of the real estate industry, Memphis Home Buyers can handle it all! If rent-to-own doesn’t suit your circumstances, our direct buyers will lay out what you’d make with a traditional listing with an agent and then lets you compare this to our offer, which you’ll agree is fair. When you work with Memphis Home Buyers to buy or sell real estate directly, we never charge commissions. So why not find out what is in your best interest with absolutely no obligation? Contact Memphis Home Buyers at (901) 828-8419.