A Step By Step Guide To Selling Your House Rent To Own In Statesville

Rent to Own Checklist for MooresvilleSelling your house in Statesville with a rent to own agreement can be the best way to sell fast for the price you want. Learn more about how to do it in our latest post!

When thinking about selling a house in Statesville, many people don’t consider using a rent to own agreement instead of a normal, “vanilla” sale- someone gets a mortgage and you get cash for your house, after paying off any existing mortgages you may have.  If you are able to delay receiving the full amount of the home, you will likely be able to find a buyer much sooner, while collecting the price you want for the home. In addition, using a rent to own agreement will provide you with cash from a downpayment upfront in addition to a higher than average rent payment each month. You will be able to make money while collecting the full price for the home in 1-2 years. Selling in this manner can be very beneficial for homeowners who want to sell their houses fast and for a great price.

Decide Which Qualities are Important to you in a Buyer

While opening your house to rent to own buyers, you’ll be giving a whole new pool of people the opportunity to buy your house. That said, you can’t enter into an agreement with just anyone. You’ll need to determine what you will accept as far as credit score, down payment amount, (otherwise known as non-refundable option consideration- if you call it a down payment, good luck evicting your rent to own buyer- the court will very likely require you to foreclose on him or her, an expensive process that will require you to hire an attorney, and could take 6 months or much longer).  It is also important to spell out the length of the agreement, if any extensions will be allowed, and if any additional monies will be due during these extensions.

You are not entering into an agreement with your potential buyer indefinitely until they are able to buy outright. Instead, you need to work with a potential buyer who will be able to follow through on their end of the deal. Even if they have the best intentions, being able to actually follow through on the agreement is a different story. Before setting up a rent to own agreement for selling your house in Statesville, make sure you know what you will accept and what you are looking for in a potential buyer.

Prescreen your potential buyer carefully.

This is probably the most important advice in this article.  You are far better off leaving your house empty than putting the wrong person in, and the wrong person will very often lie on his or her application.

Come to Agreement on the Important Terms of Sale

Once you know what kind of tenant you are looking for, you will need to find someone who will agree to your terms. You will need to agree on the rent paid each month, the downpayment amount, and any portion of the rent that goes toward the purchase of the home. You will also need to define a timeframe that works for both parties. This is not an indefinite agreement. Within 1-3 years the renter must purchase the home outright or walk away, losing their downpayment and option to buy in the process.

Have Your Attorney Create a Legal Contract

When using a rent to own agreement for selling your house in Statesville, it is crucial that everything is set up legally. You don’t want to be hit with a lawsuit or find yourself in a place where you need to file one yourself. A rent to own agreement will be detailed, covering every scenario possible as to protect all parties. Property Solutions, LLC can help you facilitate the process, of selling your house via a rent to own agreement, making sure everything is handled legally and professionally.  North Carolina has some very specific laws regarding Lease Options, read more here.

Good Property Management will Make or Break Your Sale

Property Management is a very specific skill, and common sense will not always necessarily serve you the best.  If you’re not going to pay a professional company to manage the property until your buyer cashes you out, you must educate yourself on property management techniques.  We have been managing properties since 2004 (for ourselves, not for others), and have written a number of articles giving advice on property management.

Having A Way Out

Just like a rental situation, in a rent to own agreement, you are able to evict the tenant if they aren’t paying rent or if they have violated the agreement in any sort of way. While you don’t want it to ever come to this, you should be versed in the eviction process, knowing what your rights and what the tenant’s rights are. The house is technically yours until it has been paid for in full. Until that day, you need to protect it, making sure nobody is occupying the property that will cause damage or lower the property value.

Learn more about selling your house via rent to own by reaching out to our team today! (704) 625-0260

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