Selling your house via the rent to own strategy is a great option for both the buyer and seller. The seller can collect rent and additional monies, and the buyer can try the house for a while. There are 2 different types of rent to own contracts, the option to buy and the agreement to buy. The option to buy lets the renter decide if they would like to purchase the house at the end of the rental period, while the agreement to buy is a more solid contract where the renter must purchase the home at the end of the rental period. This gives the buyer time to build up a deposit and find a financing strategy that works for them. If they end up not being able to qualify for the loan, and they have the option contract, this lets them off the hook and saves you from the headache of legal fees.
When selling your house via rent to own in Chicago, 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 Chicago, IL. 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! They will have the chance to fall in love with it or decide maybe it isn’t the best house for their family before committing to homeownership. If they decide not to purchase it, you can turn around and list it as a rent to own house again!
Higher Sales Price
When selling your house via rent to own in Chicago, 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 Chicago, 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. This option fee is non-refundable, even if they do not choose to purchase the house. Also, there is usually an additional amount added to each month’s rent to go towards a deposit on the house and in a lot of cases, 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 Chicago. 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.