Selling your house in Minneapolis can be simple with a rent to own contract! There are a number of excellent benefits to selling this way for homeowners to consider. Continue reading to learn more about the advantages!
Using a rent to own agreement to sell your house in Minneapolis can be an excellent choice. The benefits to home sellers can be huge. You’ll be able to reach more buyers, you’ll have a much better shot of getting your asking price, and you will instantly turn your property into an investment that provides you with income month after month. If you need to sell your house in Minneapolis don’t rule out a rent to own contract, it might be the home selling solution you have been waiting for!
Set A Realistic Down Payment
Be fair to yourself and your potential buyers when pursuing entering into a rent to own contract; the number needs to be realistic. Buyers unable to qualify for a loan due to lack of down payment, aren’t going to be able to come up with one for you either. While you should require an option fee from your potential buyer, make sure it is something they can afford. Not something that will dissuade them from agreeing to the deal with you.
Use A Comprehensive Agreement
There are a lot of things that should be covered in a rent to own agreement. It is important to have a detailed contract that covers common situations buyers and sellers face. By using a detailed and comprehensive agreement upfront, you’ll be able to avoid any disagreements or disturbances down the road. A few of the things to include in the agreement include…
Repairs & Maintenance – It’s important to have a clear understanding of who is in charge of what. In many cases, minor repairs and maintenance costs will be the responsibility of the tenant/potential owner. Whereas if something major should go wrong, that expense will fall on the actual property owner. Let’s say the water heater busts a week after move-in. This cost won’t usually be the responsibility of the tenant.
Taxes – At the end of the day, the property taxes are the responsibility of the person whose name appears on the deed. Some agreements will take taxes into consideration, charging the prospective buyer a reimbursement cost.
Lease Terms – Some contracts last a year and others last three. As the homeowner, it is up to you how long you are willing to wait before officially selling the house. Some homeowners don’t mind waiting, while others will want the closing to happen sooner rather than later.
Contingencies – A properly set up agreement will offer contingencies for both the buyer and seller. The buyer cannot be expected to purchase the house if they discover something fundamentally wrong with the property that wasn’t disclosed up front. While you want to find a buyer, it is also important to be honest and fair.
Foreclosure Process – Your agreement should outline the foreclosure process and what will put the tenant in violation of their agreement. Hopefully, you won’t ever have to deal with the eviction process, however, if you do, it will help to have all the details in black and white.
Miscellaneous Situations – Depending on your property and its location, there are miscellaneous things you should include in your contract. Like what happens if your tenant violates HOA rules? Or if they alter the house without following through on the lease? Or if a natural disaster damages the property beyond repair? There are lots of different situations that can arise. By anticipating them ahead of time, you’ll be able to avoid conflict with your tenants down the road.
References and Background Checks
While you are opening the house up to many more buyers, cautionary measures are important. Do some research on your potential buyer by checking references and running background checks. Make sure that the people you enter into a rent to own agreement with are able to pay you each month until they qualify for a mortgage.
Consult A Pro
Hiring a professional such as Fast Cash Homes MN to help you with the set up of your rent to own agreement is crucial when you sell your house this way. We can help you set up the contract, find the right buyers, answer all of your questions, and make sure everything is handled legally and ethically. If it doesn’t work out best for you to work with a rent to own situation, we buy houses fast. We can give you a fair, no-obligation cash home offer, fast. We can close your property in as soon as seven days. By utilizing our expertise in the rent to own market, you’ll finally be able to sell your house, get your asking price, and be able to create an income-producing asset for you and your family.