When it comes to selling your house, one of the most attractive options is to enter into a rent to own agreement. This type of agreement allows the seller (you) to lease the house to the buyer for an agreed upon period of time before the buyer assumes ownership. The advantages of a rent to own agreement are that it gives buyers more time to save for a down payment and allows them to test out the home for an extended period before they commit to the purchase. Read on to learn more about how to set up a rent-to-own agreement that will help sell your Hialeah house for the highest price possible
Set Up A Contract
A rent to own agreement needs to be comprehensive and thorough. All of the important details should be listed including the length of the lease, the rental amount, the terms for the eventual sale of the property, the purchase price, the down payment, the payment schedule, the interest rate, the penalties for late payments, the maintenance and repair responsibilities of each party, and any other relevant information. Make sure that all parties to the agreement fully understand all aspects of the agreement to prevent any legal hassles later on.
A rent to own agreement must clearly outline all of the important terms and conditions of the agreement, including the payment amount, the length of the lease, and the price and terms of the eventual sale of the property.
Additionally, it should include any terms that cover the repairing and upkeep of the property and the rights and responsibilities of both the tenant and the owner. All of the important details should be agreed upon and documented in writing to ensure that all parties involved fully understand and comply with the agreement, and to avoid potential legal issues in the future.
Determine The Rental Price
The rental price should be set at a rate that will cover the mortgage payments and other expenses associated with the property. When setting the rental rate, make sure that you are able to make a profit on the rent over time to assist with other costs associated with the sale.
Establish a Purchase Price
When establishing the purchase price, make sure that you factor in all potential costs of the sale, including closing costs, legal fees, etc. That being said, make sure to set a fair price that will be attractive to potential buyers.
Create a Timeline
When setting up the rent to own agreement, you should establish a timeline for the length of the lease and the closing date. If you are flexible and willing to let the agreement stretch into a longer period of time, it may make it more appealing to buyers and help you get a better price.
Set Up a Option Fee
An option fee is a one-time payment by the buyer that gives them the right to purchase the house at a set price at a future date. This fee is typically non-refundable and should not exceed 5% of the purchase price.
Consider Setting Up an Escrow Account
An escrow account is an account that is held by a neutral third party. This allows your down payment and future payments to be held in a secure account before the sale is finalized.
Get An Attorney
It is always a good idea to have a lawyer review the rent to own agreement to make sure that your rights are protected and the agreement is solid.By following these steps for setting up a rent to own agreement, you can make sure that you get the best possible price for your home. A rent to own agreement can be a great way to help potential buyers become future homeowners, and it can be a great way for sellers to get a higher sale price.
At Down South Florida Home Buyers, 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 Down South Florida Home Buyers can help guide you through setting up a rent-to-own agreement. Our goal at Down South Florida Home Buyers is to help you sell your Hialeah house for the highest price possible. The professionals at Down South Florida Home Buyers 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 Down South Florida Home Buyers at (239) 766-6225 .