Selling your home on a rent-to-own contract can be a great fit for both buyers and sellers. For sellers, this makes the home available to a wider pool of potential buyers. For the buyer, this allows them to get into a home without worrying about paying all cash or getting immediate financing for a home. There are 2 kinds of purchase contracts, a contract to purchase and an option to purchase. The contract to purchase is legally binding and a buyer must buy the home by the contract date. The option to purchase is simply an option that allows one to decide at the end of the option whether they want to go forward with the purchase of the property. If the buyer can’t, or doesn’t want, to get financing by the end of the option contract they can walk away without any legal reprecussions.
When selling your house via rent to own in Kansas City, you can expect to negotiate the terms of the contract in your favor. You can have the buyer maintain the property and make the repairs to the house, except for some repairs; make sure to research your local laws. You can negotiate the rental length, the amount of extra money added to rent towards the deposit, and how much the option fee will be.
You will have a much broader market when selling your house via rent to own in Kansas City, Missouri. You will have plenty of buyers to choose from since a lot of people are interested in “trying before buying.” This gives the potential buyer the option to buy the house after living in it for a few years, which is great news to them! The buyers can have a few years to decide that this is the house that they truly want, or perhaps it won’t work for their family before being locked into homeownership. And for the seller, if the buyer ends up not buying the home, they can turn around and sell the property to another interested buyer.
Higher Sales Price
When selling your house via rent to own in Kansas City, you can expect to have a higher purchase price locked in if the renter does decide to buy the house. The buyer will be willing to pay more to have this great opportunity. Also, the locked-in purchase price can be a great sigh of relief, especially if the market does not appreciate as much as you were hoping since you negotiated the purchase price.
When you sell your house via rent to own in Kansas City, you are expected to place an option fee on the rent to own contract. This allows the renter to choose to purchase the house or not at the end of their rental term, which is typically 3 years. The option fee is non-refundable. Many times, the home owner will set some of the rent aside so that the buyer will have an easier time purchasing the home when they decide to move forward. This amount is also non-refundable.
If you don’t need to sell your house right away, you can expect to have a monthly income for at least 2 years, usually 3 years when selling your house via rent to own in Kansas City. This can help to pay your own mortgage or add the extra funds to your investment pool for additional investments. You could also save that money for a different large purchase or create a savings account for something special.