Sometimes selling your house traditionally in Lakeville MN may not be a viable option. Because let’s face it, selling a house with an agent isn’t always as effective as it looks in the movies. At times when the market is slow and there are very few buyers, you may find your property being listed for months on end without so much as a showing request. And when this happens, a great alternative to traditional home sales that you can turn to is to sell via a rent-to-own agreement.
The rent-to-own market is quite a good choice. Yet, it can often be overlooked. Unlike a traditional home sale, rent-to-own agreements target a larger audience of potential buyers. As such, if you’re struggling to find pre-approved retail buyers on the open market, why not take a moment to consider entering into a rent-to-own agreement.
Through a rent-to-own agreement, you have the advantage of maintaining control of the property and setting the terms of the agreement. Additionally, should your property need repairs, many of the tenants you sign with will opt for “elbow grease” credit that will cover work completed on the property during their stay? As such, it’s clear to see that amongst all the home sale options available in Lakeville MN, owner financing stands out.
In this blog post, we will explore 5 reasons why homeowners should sell their house in Lakeville with a rent-to-own agreement. So read on to learn more about the key benefits you’ll experience if you choose to explore this home sale option.
Benefits of Selling Your House with a Rent To Own Agreement in Lakeville MN
Read on to explore some of the key benefits you’ll experience from selling your house via a rent-to-own agreement.
1. You Get Higher Prices
Rent-to-own agreements can offer you higher net prices than traditional home sales in the long run.
Because you’re willing to work with your buyer, you’ll be in a position to demand more for your house. Despite the fact that your buyer may be having issues qualifying for conventional loans (therefore requiring a rent to own agreement), this option could actually get you more money out of your home sale than a traditional sale could.
When setting the price for the term of your lease agreement, despite any downward trend in real estate values, you can set the rate at a higher value that will be determined by the length of your agreement. This gives you the ability to sell now for a higher than average market value. As such, it is another reason why homeowners should sell their house in Lakeville MN with a rent-to-own agreement.
2. Your Market is Expanded
Rent-to-own agreements can offer you a larger buyer base which can help you sell fast.
Many buyers are finding themselves with less than perfect credit after going through a financially unstable period in the economy in recent years. This has left many potential buyers unable to obtain traditional financing. Likewise, people who may normally have been content as renters are making the move towards more permanent housing options. As such, when you explore selling your house through a rent-to-own agreement, you open yourself up to all of these potential buyers. By broadening your buyer base, your home is much more likely to sell while many others sit on the market losing value. This is why homeowners should sell their house in Lakeville with a rent-to-own agreement.
3. Continued Tax Deductions
Rent-to-own agreements can offer you amazing tax advantages that no other sale option can.
While some of the income that you receive while your buyer is still renting may reduce the deduction, you can still claim tax advantages on the property. This is another reason why you should consider selling your house through a rent to own agreement. Any interest you generate from loans for improvements to the property can be written off. In addition, any remaining mortgage loan you carry will also continue to benefit from depreciation.
4. An Alternative Income Stream
Rent-to-own agreements can offer you an alternative monthly income stream that’s reliable.
Given your ability to hold onto the property when you sell through a rent-to-own agreement, you’ll also be able to earn a steady stream of income during the term of your agreement. This will continue as your tenant rebuilds their credit and prepares to purchase your house. So if your looking to generate the highest profit possible from your home sale, choosing to sell through a rent-to-own agreement may be your best option. In addition to the profit, you’ll realize from the sale, you can also charge a higher monthly rent rate than average. While a portion of the rent income will apply towards your buyer’s investment, the remainder of the passive income can help you to continue to live your dreams or even give you capital to invest in more real estate.
4. Pride of Ownership
Rent-to-own agreements can make your landlord maintenance responsibilities easier.
Since your tenant will eventually become the owner of your rented property, the likelihood that the house will be well cared for is higher. You’ll find that without any prompting, maintenance and routine tasks will typically be carried out by your tenant. As such, expensive damage can be prevented. In the event of plumbing emergencies, roof leaks, and other potential disasters, your tenant will typically inform you quickly in hope of resolving the issue for when they assume ownership. Additionally, Unlike renters, a rent to own agreement means that your tenants can be made responsible for repairs and maintenance as well.
Above all, selling through a rent-to-own agreement can help you lock in a promising future sale price for your home. In the meantime, you’ll have a tenant who will treat your property with respect because they’ll be the future owners! These are great reasons why homeowners should sell their house in Lakeville with a rent-to-own agreement. FastPath Home Buyers can help you set it up. We also know how to find the perfect buyer! And if you’d rather sell your house fast at once, we buy houses in Lakeville MN and would love to offer you a fair price.
To learn more about us and what we can do, fill out the short form below or call (612) 351-2384 today.
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