How to Set Up a Rent to Own Agreement That Will Help You Sell Your Kansas City House for the Highest Price Possible

Have you ever considered using a rent to own agreement to sell your house in Kansas City? The real estate market is in a period of transition as more people are working from home, and homeschooling is on the rise. There are many potential buyers in Kansas City that don’t quite have the credit needed to qualify for traditional financing to buy a home just yet but can buy on creative terms. You can either create this agreement as an option, where they can walk away voluntarily at the end of the term or as an agreement that would bring legal action for default. Or, you could have an option for an extension if the buyers are not quite ready to buy at the end of the original term. This option can also be combined with a rent so that they can occupy the home and pay you rent until they can buy the home. This is known as a lease-option agreement.

Failure on the part of the buyers to gain approval for a conventional loan at the end of the two or three-year period set out in the rent-to-own agreement means that the home defaults back to you. Technically, the rent-to-owners never actually owned the home, but they did have equitable interest in the property while the option is in force. Once the option expires you’ll then have the option to rent or resale the property while keeping the deposit and any extra rent fees in the agreement added to the monthly rent as credit towards the down payment.

Because you are in the driver’s seat, you can set the terms for maintenance, repairs and who pays homeowners insurance, and even the taxes in the contract terms. Read on to learn more about how to set up a rent-to-own agreement that will help sell your  Kansas City house for the highest price possible.

Get Your Asking Price

Sellers are taking a risk in working with buyers with less than perfect credit. You also risk home values jumping far beyond current expectations. Because you are offering a benefit that is otherwise unattainable to these buyers, you can set the asking price at the potential value the property could have in the future as your sales price now. In practical terms, this means setting the selling price higher than the current market rate. We usually advocate for a 10% price increase over the current value. On the other hand, you’ll come out ahead if home values drop because the sales price is predetermined. Because there is far higher demand than supply of homes available through a rent-to-own deal, providing this opportunity will help sell your Kansas City house to eager buyers for the highest price possible. This price increase may seem high, but remember that you’re being paid to provide a valuable service to a happy customer base.

Potential Buyers

The typical younger rental pool that would typically seek temporary housing solutions is now turning its eyes towards a more permanent residence, desiring the benefits of homeownership. By offering to sell your home as rent-to-own, you’re opening the buyer pool to a much larger segment of the population. These buyers understand all too well the chance that they have been provided and are highly motivated towards a successful outcome to the agreement. These factors combine to bring added value, which helps you sell your Kansas City house for the highest price possible. This can be very helpful if you’ve had trouble selling your property for the price that you want in today’s market.

Protection

While some risks are involved in working with buyers who are repairing credit, there is no need to take needless risks. Therefore, you should consider using an experienced real estate lawyer to review your rent-to-own agreement. Avoiding legal conflicts over a poorly constructed contract benefits both parties, the seller and the buyer. Ensuring both parties have legal protections and disputes will likely be avoided is helpful when you sell your Kansas City house with a rent-to-own agreement for the highest price possible.

We have experience with lease options and have sold homes on rent-to-own agreements as well as helped other homeowners to do the same. Let us help you sell your Kansas City home with rent-to-own as well!

Green Sparrow Properties makes it easy! At Green Sparrow Properties, our process is simple and straightforward! We make it easy and fast, working with experts from every walk of the real estate industry. Our team at Green Sparrow Properties can help guide you through setting up a rent-to-own agreement. Our goal at Green Sparrow Properties is to help you sell your Kansas City house for the highest price possible. The professionals at Green Sparrow Properties are happy to answer any questions or concerns you may have about rent-to-own agreements with no obligation. Send us a message or call Green Sparrow Properties at 816-800-9238.

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