Using a rent to own agreement can be a great solution to selling for both the buyer and the seller. There are two basic types of rent to own agreements, an option to buy or an agreement to buy. With the option, the buyers can try out the property as if it were their own. At the end of the agreed-upon period, they can either buy or walk away. Just as it sounds, with an agreement to buy, the buyer must follow through with the contract. Because you hold the property, you also hold the cards in the negotiations. Ready to learn more? Read on to find out about these five perks of using a rent to own agreement to sell your house in Southwest Michigan
Different Sector of Buyers
In the competitive Southwest Michigan real estate market, numerous potential buyers who might not meet the requirements for traditional loans eagerly await the opportunity to achieve homeownership. These individuals often face challenges in securing conventional financing, leading to a limited pool of available options in this specific market segment. Consequently, rent-to-own properties are highly sought after and seldom remain on the market for extended periods. This scenario creates a seller’s market for rent-to-own arrangements, offering a distinct advantage to property owners in Southwest Michigan. By utilizing a rent-to-own agreement when selling your house, you can benefit from the high demand and limited supply, positioning yourself for a more favorable and expeditious sale.
Speedy Sale
One of the financial advantages of utilizing a rent-to-own agreement when selling your house in Southwest Michigan is the potential for a swift transaction. While retaining ownership of the property, you can alleviate concerns regarding holding costs or the extended wait for an ideal buyer in the conventional market. As the financier in a rent-to-own arrangement, you can bypass the time-consuming processes associated with traditional loans. This expedited process not only saves you valuable time but also reduces associated expenses, making the rent-to-own strategy an attractive option for selling your property in Southwest Michigan.
Collect a “Down Payment”
Utilizing a rent-to-own agreement when selling your house in Southwest Michigan can offer a substantial financial advantage in the form of a considerable down payment to secure the transaction. This significant upfront payment serves as an excellent financial boost for the seller. Furthermore, in the event that the option buyers decide to walk away or the agreement buyers are unable to secure financing, you, as the seller, retain all the funds collected throughout the agreement’s duration, including the sizeable down payment. This aspect of a rent-to-own arrangement provides an additional layer of financial security and serves as an attractive perk when selling your property in Southwest Michigan.
Confidence in Your Tenants
The rent-to-own agreement for selling your house in Southwest Michigan offers you peace of mind as a valuable perk. Given that your tenants have invested a significant amount of money into the property, it is unlikely that they would abandon the deal without valid reasons before the contract’s conclusion. Furthermore, since the tenants generally assume an ownership mindset, they typically take responsibility for the property’s maintenance and repairs. This sense of security and reduced burden on property upkeep make the rent-to-own arrangement an attractive option for selling your house in Southwest Michigan.
Get Market Value +
Holding the cards means you set the rules of the game. When it comes to rent-to-own contracts, you’re, in essence, keeping your home off of the market for a specific period. Making an educated estimate of the home’s value may be when the contract ends, you can set the sale price at a higher value than the current market. Additionally, you can charge a higher than average monthly rent while collecting an additional amount towards the purchase as a further part of the down payment, spread out over time. This immediate gain in value is another perk of using a rent to own agreement to sell your house in Southwest Michigan. On the other side of the coin, if the market value drops, you avoid an equity loss.
Call I Buy SW MI to discuss these and many more perks of using a rent to own agreement to sell your house in Southwest Michigan. I Buy SW MI makes the process easy and can help you with every step! Send us a message or call (231) 392-3262 today!