Selling via rent to own can be an excellent option that many Fort Wayne homeowners fail to consider. Learn more about how the process works and what benefits you will receive in our latest post!
A rent to own agreement can be an excellent way for a Fort Wayne homeowners to sell their house fast. The financial benefits are very rewarding, not to mention the security of a regular income from the property. Keep in mind, there are some things a seller should be aware of when using a rent to own agreement to sell a house in Fort Wayne. Keep reading to learn what they are and how you can create a rent to own agreement that will protect your best interest while helping you to sell your house fast in Fort Wayne!
Handling Default
The first thing you need to be aware of when selling your house via rent to own in Fort Wayne is what happens in the case of default. What is default you ask? When a buyer cannot live up to their end of the contract. While the odds of your potential buyers defaulting on the agreement is relatively low, you’ll need to know what to do if it happens. The property remains in your name until your buyer is able to get a traditional loan for the home. Much like a bank, if your tenant isn’t paying, is causing damage to the house, or is somehow defying the agreement set in place, they are running the risk of foreclosure, while you will be able to retain full ownership, holding onto the down payment.
Creating A Legal Contract
The second thing you need to be aware of when selling your house via rent to own in Fort Wayne is that you need to create a legal contract. A rent to own agreement should be very detailed, as to protect both the buyer and the seller. It should contain clauses highlighting who is responsible for what, important dates, and penalties for violation of the agreement. You don’t want to leave room for any confusion, discrepancy or disagreement between you and your potential buyer. To ensure your agreement is legally binding, reach out to a local real estate attorney, get it notarized, or call Sky Line Properties LLC to help you facilitate the rent to own process.
Finding The Right Tenants
The third thing you need to be aware of when selling your house via rent to own in Fort Wayne is knowing the rights of the tenants. Using a rent to own agreement will allow buyers that cannot buy traditionally to have the option to purchase your property. People who couldn’t quite qualify for traditional funding due to a low credit score or lack of down payment may be able to meet the qualifications set forth in your agreement, depending on the terms. There are many great buyers out there that may have a down payment, but are being held back due to a blemish on their credit report. The key is to find the buyers you are committed. Buyers of genuine character who will follow through on their obligation to you. Once the right tenants are found, you will create a win-win situation for all parties involved. Be sure to do your homework on your potential buyer before entering into an agreement, which could include running a credit check or checking references.
Being Back Where You Started
The fourth thing you need to be aware of when selling your house via rent to own in Fort Wayne is that you could be right back where you started, needing to sell (again). While it may not happen often, you do run the risk of your tenant being unable to buy at the end of the lease term. This means you will still be the owner and can either try to list at this point or enter into another rent to own agreement. While this may seem frustrating, you can actually come out ahead from a financial standpoint. Sure you didn’t sell the house, but you were able to collect a higher than average rent plus a non-refundable down payment for your troubles. Who knows, the market may rise dramatically during this time and you may be able to sell for even more than you would have before the agreement!
Selling via rent to own in Fort Wayne can be very beneficial to homeowners looking for a way to quickly make money off of a property they own, if you’re willing to take a little risk. Our team can help you understand the risks and the reward so you can make the selling decision that is right for you!