“Help! I need to sell my house quick!” It is rare that a day goes by that I do not hear these words. People need to sell their home quickly for a variety of reasons. Some are relocating or simply tired of a commute that is way too long. Others have lost their jobs and selling is the only thing that is going to save them from foreclosure.
Unfortunately, selling quickly for full fair market value is not very likely in today’s market. Unless your home has something extraordinary about it or you are able to offer a steep discount, chances are it is going to take some time for your home to sell.
But what can you do if it is critical that you sell your house quickly? In this real estate market, you need to be creative and open to new ideas.
One thing that many homeowners are having success with is offering their home for rent to own. This means that the tenant buyer will rent for a set period of time and then have the option to purchase the home at the end of the rental period. The price is set up front so that you know what you are selling the home for now. You get full fair market value and someone to make your payment during the rental period. And, as long as the contract is structured properly and your buyer is serious about becoming a home owner, chances are you will have a full market sale in a year or two.
Let’s take a look at how the numbers work. Say you want to net $400,000 from the sale of your home. You would set the rent to own option price at $412,000 with a $12,000 rent credit to the buyer. This way, you get the cash you need from the home and the buyer has a credit that will go towards the purchase price and potentially the down payment. Not having to come up with cash for the down payment raises the chances of a successful closing.
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