There is a shortage of opportunities and high desirability of rent-to-own properties for buyers, making rent-to-own agreements offer a lucrative delayed exit strategy allowing real estate investors to squeeze a few extra dimes out of the returns on the property. In addition, the buyer maintains the property as if it were their own, typically up to a given price point, per the terms of your agreement. All while you enjoy an extra income stream during the lease period.
Rent-to-own opportunities afford the buyer a method of attaining the benefits of homeownership before qualifying for a conventional mortgage with a lender or as a way to test drive the house and neighborhood to ensure a fit that lasts a lifetime in the home. Of course, you should always have your contract reviewed by a professional real estate attorney, tax consultant, or trusted counsel experienced in real estate. So read on as we explore how to get your asking price without any waiting in Columbus.
Pricing
You will have to determine what you believe the property value would be at the end of the term, two or three years into the future. While you will be asking far above the current market value, buyers understand you are taking the risk that there is an unexpected boom in housing values, and they might buy at below market value. In the rent-to-own scenario, buyers can exercise their right to purchase the property under the lease terms, and you get the asking price without any of the hassles of listing or any waiting in Columbus. If you’re not sure about your property’s future value, consult with a local real estate agent to get a better idea of what similar homes in your area are selling for. You can also look up your city or county’s median home value on websites like Zillow.com or Realtor.com. Once you have a ballpark figure in mind, add 10-20% to that number to account for the increased risk that comes with rent-to-own properties.
Avoiding Listing
Many sellers prefer to avoid listing with an agent or selling independently as an FSBO, which is a process with no guaranteed end date. The stress of a property lingering on the market is overwhelming, and the prep work and any repairs needed are typically costly and the entire process stressful. Yet, they believe it is the only way to sell the property and get their asking price. You can sell your property as-is through rent-to-own, even if it needs a lot of work. Given the law of supply and demand, you are in the driver’s seat at the bargaining table without any waiting in Columbus by selling rent-to-own.
Rent and Option Premiums
you will receive an upfront option fee or premium without waiting in Columbus. Sellers tend to charge a set percentage of the home’s price ranging from 1 to 20 percent of the asking price. Additionally, the buyer will pay an additional amount on top of the current monthly rental rate, known as the rent premium, that will apply towards their downpayment, should they exercise their option to buy. So while most buyers complete the purchase, you will keep the premiums and all rents collected should they decide otherwise or fail to qualify for a mortgage.
Flavortown Properties
Flavortown Properties is ready to buy your home, giving you the asking price via rent-to-own. Talk to one of the local professional home buyers at Flavortown Properties today. The professional home buyers at Flavortown Properties never charge commissions or closing costs to sellers, and there is nothing hidden in our contracts. You will have cash in your hands in a matter of days for your property and a guaranteed closing date. At Flavortown Properties, we are your neighbors who live and work alongside you here in Columbus, and we want to make a deal you will feel great about long after closing. Ready to learn more about selling your Columbus home via rent-to-own? At Flavortown Properties, we are happy to answer your questions without any obligation, so call Flavortown Properties at (614) 964-9858.