Selling your house in Chicago offers various choices beyond the usual methods like listing or selling to a cash investor. More and more people are now considering a different approach called “rent to own agreement.” It might seem a bit different, but it can bring in good returns when done right. In our latest post we will explain the benefits of using rent to own agreement to sell your house in [market-city]!
Think about this: when you sell your house in Chicago, have you thought about using the rent-to-own option? Well, you really should! Turns out, selling this way is fantastic for a few reasons. If you don’t need all the money right away, going for rent to own can be an easy and profitable way to sell. Let’s dig into why this might be the right choice for you!
Benefits of Using a Rent to Own Agreement to Sell Your House in Chicago
Get The Price You Want
When you arrange a rent to own agreement, here’s a simple way to look at it. First, decide on the house price you’re aiming for. Deduct a reasonable sum for a deposit (the amount can vary and is always up for negotiation). Then, think about the monthly “rent” you’ll be paying. A part of these payments will contribute to the house’s overall price. Calculate this total over the rental term; let’s say, for example, it spans two years.
Consider the remaining balance owed at the end of these two years. You’ll settle this amount in one lump sum to officially seal the deal and make the home yours. It’s essential to work out these details before signing the contract. This way, even if housing prices dip, you’re locked in at the agreed-upon price for the home. This arrangement can be a game-changer for those finding it a bit challenging to become homeowners. By providing them the time to sort out their finances, many will happily pay the full retail price for the home.
More People Have The Opportunity To Buy
Selling your house in Chicago through a rent to own arrangement puts your property in front of a broader pool of potential buyers. Many good folks out there are eager to become homeowners, but they might face minor hurdles that don’t shine on paperwork. It could be a blemish on their credit history from a past not-so-great purchase. Offering them the rent-to-own option opens the door for them now, allowing them to address their credit issues and secure a loan to settle the balance once the two-year rental period concludes.
There are individuals who aspire to establish roots in their own home but lack sufficient savings for a traditional down payment on a standard loan. By embracing the rent-to-own approach, they have the opportunity to focus on saving over the next two years, paving the way for them to qualify for a loan and complete the payment for the home they’ve come to love. This flexible arrangement accommodates the aspirations of diverse homebuyers, making the dream of homeownership achievable for a wider audience.
You Can Turn Your Property Into An Income Producing Investment
Instead of getting all the money at once for the house, you’ll get a deposit first, and then every month, you’ll get some money. Finally, you’ll get the rest of the money. This means you’ll have cash coming in every month, which is awesome for managing your budget and planning ahead. It’s a smart way to know what to expect financially each month! Plus, it helps you stay on top of things and be more organized with your money.
Your Tenants Will Take Care of The House
The idea is that one day, your tenants will fully own the house! When people feel like it’s truly their home, they tend to take great pride in it. This usually leads to them looking after the property really well, which can save you money on maintenance. In fact, many tenants in this position often make improvements and cosmetic changes, increasing the overall value of the home. Of course, any changes they want to make should be discussed with you first, and they need to get the necessary permits.
Even If They Default, You Come Out Ahead
You own the property until the last payment for the house is settled. This implies that if the renter chooses not to purchase the house when the lease ends, you retain all the funds received, including the higher monthly rent and the deposit. This leaves you free to rent out or sell the house again. Fortunately, such situations are rare because most folks prefer to proceed with the purchase after putting money into the property upfront!