Selling your property via a rent to own agreement is an excellent way to easily get the price you want for your Charleston house. The process is simple and you’ll likely be able to find a buyer right away, even your current tenant! Learn more about how to set it up in our latest post!
There are many reasons why homeowners in Charleston are choosing to sell their properties via a rent to own agreement. If the cash isn’t needed right away, there are many financial benefits to selling your house in this manner. Below, we outline 7 steps to sell your property via a rent to own agreement in Charleston!
Step #1 – Find The Right Tenants
When entering into a rent to own agreement with a potential buyer, you’ll want to make sure it is someone you know and trust. If you would like to ultimately sell the house, you don’t want to have to worry about the deal not going through when the lease period is up. You are delaying the receipt of your funds in order to get the price you want, make sure you are working with someone who is worth it! If you have a great, long-term tenant, they are the first place you might want to look when trying to find the right people to move in.
Step #2 – Run The Numbers
As a seller, you are sacrificing immediate cash for a long term gain, so you will want to make sure it’s worth it. How much will you need upfront as a deposit? What about an option fee? You’ll need to figure out what you’ll need to charge in rent each month in order to make it worth it for you. You’ll need to determine which costs will be passed on to your tenants and which costs you will still need to manage. As you will still technically be the owner of the house during the lease period, you’ll ultimately be responsible for taxes and insurance. Make sure the monthly rent you are changing can cover these amounts!
With a rent to own agreement, the sale price is typically locked in at the time of purchase. However, in some cases, a tenant will agree to purchase at the market value at the time of the actual sale. While you run the risk of your home value dropping, you might also be able to get a higher price when all is said and done. If your tenant agrees to this, it is something you will want to consider!
Step #3 – Agree On Terms
There are many things a buyer and seller must agree to before executing their rent to own agreement. Before the buyer and seller sign on the dotted line, make sure to have an attorney look things over. Even the smallest mistake in your contract could have a huge impact on your ability to sell on the terms you had planned on.
A few of the financial details you will want to cover include:
- Will there be a down payment?
- How much will the rent be each month?
- How much if anything, will go toward the buyers down payment?
- How long before a purchase is required?
- Who will be responsible for taxes, maintenance?
- What happens with a default?
Spelling everything out as clearly as possible from the get-go will save you from any disagreement and frustration during the lease process and when it’s time to officially sell. When handled correctly, a rent to own agreement is a great way for a homeowner to sell their house in Charleston.
Contact our team today to learn more about selling your property via a rent to own agreement in Charleston! (843) 800-2705
The post 3 Steps To Selling Your Property Via A Rent To Own Agreement In Charleston appeared first on We Buy Charleston Houses.
Selling your property via a rent to own agreement is an excellent way to easily get the price you want for your Charleston house. The process is simple and you’ll likely be able to find a buyer right away, even your current tenant! Learn more about how to set it...
A great way to get your asking price for your Charleston house, is by selling via rent to own agreement. Many sellers don’t realize just how beneficial the process can be. Learn more about how it works and how it will benefit you in our latest post!
If you have had trouble selling your house in Charleston or if you haven’t been able to get an offer reflective of your asking price, a rent to own sale might be an incredible option for you. If you don’t need the cash from the sale immediately, a rent to own scenario can be one of the most lucrative ways to sell your house.
How A Rent To Own Agreement Works
A rent to own agreement is entered into between a buyer and seller and can provide benefits to both parties. The buyer will agree to rent the property for a specific period of time before they purchase outright with the help of a conventional loan. During the rental period, the rent will likely be higher than the market average and there will usually be a down payment made upfront. This helps to ensure the tenant won’t simply walk away once the rental period has elapsed. The tenant is given 1-3 years before the purchase will need to be made. The sale price can be negotiated up from or be based on market data at the time of the sale. By agreeing on a price today, you’ll be able 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 buy without a down payment
- The ability to buy with poor credit
- The ability to lock in a price for the home at today’s rates
- The ability to try a home before committing to buy it
Perks for the seller:
- Get their asking price
- Guaranteed income for the duration of the lease
- Cash up front
- Ending some holding costs for things like taxes and maintenance
How To Set One Up
There are many standard boilerplate agreements you can use to cover the basics. Additional terms and any other details should be added to the contract as a layer of protection. You will want to make sure you are covered if something goes awry. Before executing 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 needs to be completed
- Penalties for late payments
- Penalties for defaulting on the agreement
- Tenant and landlord responsibilities for repairs, taxes, utilities, and other ownership costs
- Contingencies for canceling the sale
- The final sale price
There are many other things you can include in your rent to own agreement, but the above items should be at the top of the list. Ask your lawyer, agent, or consultant about anything you may have overlooked in your agreement.
How To Get Your Asking Price
When you enter into a rent to own agreement with a buyer, the sale price is typically determined at this time. Doing so will allow you to get your asking price for the home as well as locking in the sale price for the buyer. Prices could rise dramatically, but they will still be able to buy at the agreed upon price.
Learn more about selling via rent to own agreement! Contact us today, call us at
(843) 800-2705 or complete the form below!
We buy houses in ANY CONDITION in Charleston and around SC! We pay CASH and you will not pay any commissions, agents, or fees.
The post Get Your Asking Price By Selling via Rent To Own in Charleston! appeared first on We Buy Charleston Houses.
A great way to get your asking price for your Charleston house, is by selling via rent to own agreement. Many sellers don’t realize just how beneficial the process can be. Learn more about how it works and how it will benefit you in our latest post! If you have...
Are you planning on selling your Charleston house? There is a way to sell without listing or selling for less than retail.
You can sell your house in Charleston for the price you want! Learn how more and more sellers are using a rent to own agreement to sell their homes!
Who Should Do It?
- People who want to sell their house for a specific price
- People who don’t want to wait while their house sits on the MLS
- Anyone who wants to sell their Charleston house for retail value
- Anyone who doesn’t need the full value of the property up front
How It Works
To put it simply, a rent-to-own contract would look something like this: First, you would set the final price you want to be paid for the home. You will most likely find many buyers who will agree to your asking price, in exchange for the opportunity to own a home of their own. From there, we will set a down-payment or deposit to be paid upfront buy the potential buyer. This deposit is non-refundable unless otherwise negotiated.
We will set up a monthly payment plan to last over a specific period of time, typically 1-3 years. During this time, the prospective buyer will pay an elevated monthly “rent” payment. A portion of this monthly payment will go toward the final sale price of the home. By allowing them to rent-to-own, the tenant will have the time to save up, repair their credit, or fix whatever was stopping them from qualifying for a loan previously.
Once the rental period is up, the remaining balance is owed for the sale to be final. The prospective buyer can pay the balance, or default, leaving you to keep the down payment and any other amount paid toward the purchase of the home.
- You will be able to sell to a large group of people who previously weren’t able to purchase your home
- You turn your unwanted Charleston house into an income producing asset, providing you capital each month for the next few years
- You receive a lump sum payment up front, and a lump sum payment at the end of the rental term
- You are able to get retail value for your home
- You lock in the sale price from day 1, so even if housing prices fall, you will still get the original price for the home
- The tenants are much more likely to maintain the house and take pride in its condition
- There is no guarantee that your potential buyer will qualify for a loan once the rental term ends
- You lock in the sale price from day 1, so if housing prices go up, you will still have to sell at the originally agreed upon price
Do you want to sell your house in Charleston? We can help you sell using a rent to own structure! Send us a message with your selling goals or give our team a call now! (843) 800-2705
Get a Fair Cash Offer!
The post Using a Lease to Sell Your House For The Price You Want In Charleston! appeared first on We Buy Charleston Houses.
Are you planning on selling your Charleston house? There is a way to sell without listing or selling for less than retail. You can sell your house in Charleston for the price you want! Learn how more and more sellers are using a rent to own agreement to sell their...