When it comes to selling your house by owner, it can be confusing. Which forms to use. How to market it to get people to find you. Even how to take care of the closing and recordings. However, there is one overlooked part of selling most folks don’t think enough about.
This is how the deal gets done. After all, if the buyer doesn’t get the funds in your hand, you can’t close. And in this crazy real estate market, where everyone’s wondering whether we are recovering or entering another bubble. If housing gets better, will mortgage lending become easier or harder (as they have been lately).
One of the least known, yet most powerful selling techniques when it comes to getting your house sold is a lease option. This is also known as a rent-to-own. A lease option is basically finding a well qualified tenant/buyer that wants to buy your house, but for some reason or the other, just can’t get qualified right now. It can be because of some strain on their credit from the last crash or their lender is requiring more down payment than they currently have saved up.
Either way, these are folks who genuinely want to buy, have the income to support buying the property, and just need some more time to get financing ducks in a row.
And this market is huge. The amount of people in this category is huge right now. A good 80% of people who want to buy, and can afford to do so, just can’t get approved right now.
To sell your home fast in this market, by yourself, and net the entire purchase amount (since there are no fees or commissions when selling with a lease option), this method can be a great solution. The buyers are there, and if you can wait a year or two to get cashed out… this can get you out from under your payments and get the best price possible.
If your concerned about being a landlord… don’t. Selling with a lease option attracts buyers who want to buy, not just serial renters. There is huge difference in their thinking. A renter just wants a place to live in for a period of time and move on. They won’t clean up, they don’t care about repairs, and will usually leave the house at anytime, in not the best of conditions.
When you deal with buyers, you get a great family who wants to buy your property. Not just move from place to place, but a real buyer who will take care of all the repairs, keep the place perfectly clean, and ensure the payments are made on time since they don’t want to lose their option.
You, as the seller, also benefit from the market or higher payments you’ll be getting, not having to deal will all the day-to-day maintenance, and from getting full retail price when they cash you out… without paying a realtors commissions or fess… which usually results of over 10% of the price. This works out really well if you don’t have much equity or if you’re upside on your mortgage.
Selling your house on lease option or rent-to-own is one of the best kept secrets of how to sell your house yourself fast and get the best price.