When it comes to selling your home by owner, it can get confusing. What forms to use. How to market it so that people will find you. Even how to take care of the closure and the recordings. However, there is a part of selling that most people don’t think enough about.
Financing.
This is how the deal is done. After all, if the buyer does not have the funds in his hand, he cannot close. And in this crazy real estate market, where everyone is wondering if we are recovering or entering another bubble. If the home improves, mortgage loans will be easier or more difficult (as it has been lately).
One of the lesser known, but most powerful sales techniques when it comes to selling your home is the lease option. This is also known as rent-to-own. One leasing option is basically finding a well-qualified tenant / buyer who wants to buy your home, but for some reason or another, they just can’t qualify right now. It may be due to some stress on your credit since the last crash or your lender is requiring a more down payment than you have currently saved.
Either way, these are people who really want to buy, have the income to support the property purchase, and just need a little more time to get financing.
And this market is huge. The number of people in this category is huge right now. A good 80% of people who want to buy and can afford it simply can’t get approved right now.
To sell your home quickly in this market, on your own, and get the full amount of the purchase (since there are no fees or commissions when it is sold with a lease option), this method can be a great solution. The buyers are there, and if you can wait a year or two for them to charge you … this can take you out of your payments and get you the best possible price.
If you are concerned about owning … don’t. Selling by leasing attracts buyers who want to buy, not just serial tenants. There is a big difference in your way of thinking. A tenant only wants a place to live for a period of time and move on. They don’t clean, they don’t care about repairs, and they usually leave the house at any time, not in the best condition.
When you deal with buyers, you get a large family who wants to buy your property. Not just moving from place to place, but a true buyer who will take care of all the repairs, keep the place perfectly clean, and make sure payments are made on time as they don’t want to lose their option.
You, as a seller, also benefit from the market or the higher payments you will receive, you will not have to negotiate with all the daily maintenance and you will get the full retail price when they pick it up … without paying a real estate commission or fess .. which is usually more than 10% of the price. This works great if you don’t have a lot of equity or if you are on the rise on your mortgage.
Selling your home as a lease or rent-to-own option is one of the best-kept secrets of how to sell your home quickly and get the best price.