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 San Antonio .
Pricing
When it comes to setting the price for your home, there are a number of factors to consider. The most important factor is the current market value of similar homes in your area. You’ll also want to take into account the condition of your home and any upgrades or renovations that have been made.
If you’re considering a rent-to-own agreement, you’ll need 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.
Another pricing consideration is your motivation for selling. If you need to sell quickly, you may need to be willing to accept a lower offer. On the other hand, if you’re not in a hurry, you can afford to be more selective and hold out for a higher price.
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 San Antonio by selling rent-to-own.
Rent and Option Premiums
If you’re looking to receive an upfront option fee or premium without waiting, San Antonio is a great place to consider. Sellers in this area typically charge a set percentage of the home’s price, ranging from 1 to 20 percent of the asking price. Additionally, buyers will pay an additional amount on top of the current monthly rental rate – known as the rent premium – which will apply towards their downpayment if they choose to exercise their option to buy. Most buyers do complete the purchase, but if they don’t, you’ll still keep the premiums and all rents collected, should they decide otherwise or fail to qualify for a mortgage.
Phil Buys Homes Cash
Phil Buys Homes Cash 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 Phil Buys Homes Cash today. The professional home buyers at Phil Buys Homes Cash 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 Phil Buys Homes Cash , we are your neighbors who live and work alongside you here in San Antonio , and we want to make a deal you will feel great about long after closing. Ready to learn more about selling your San Antonio home via rent-to-own? At Phil Buys Homes Cash , we are happy to answer your questions without any obligation, so call Phil Buys Homes Cash at (210) 239-8720.