There is a shortage of opportunities and high desirability of rent-to-own properties for buyers, making rent-to-own agreements offer a lucrative delayed exit strategy allowing real estate investors to squeeze a few extra dimes out of the returns on the property. In addition, the buyer maintains the property as if it were their own, typically up to a given price point, per the terms of your agreement. All while you enjoy an extra income stream during the lease period.
Rent-to-own opportunities afford the buyer a method of attaining the benefits of homeownership before qualifying for a conventional mortgage with a lender or as a way to test drive the house and neighborhood to ensure a fit that lasts a lifetime in the home. Of course, you should always have your contract reviewed by a professional real estate attorney, tax consultant, or trusted counsel experienced in real estate. So read on as we explore how to get your asking price without any waiting in Fort Myers.
Pricing
In a rent-to-own agreement, you’ll essentially be making a prediction about the future housing market in Fort Myers. You’ll need to estimate what the property value will be in two or three years, when the lease term ends. This can be a gamble, but it offers potential benefits. By setting your asking price above the current market value, you’re essentially betting on an increase in home prices. If your prediction is right, the renter-buyer gets the advantage of locking in a price that might be below market value at the end of the lease. They’re essentially buying with the potential for future appreciation. This can be attractive to someone who wants to establish roots in a growing market but might not have the resources for a traditional down payment. On your end, you benefit from the convenience and security of a rent-to-own arrangement. You’ll receive steady monthly payments while the property hopefully appreciates in value. Plus, you’ll avoid the hassle and potential costs of listing and selling the property on the open market. It’s a win-win situation if the housing market cooperates, but it’s important to carefully consider the risks involved before entering a rent-to-own agreement.
Avoiding Listing
Many sellers prefer to avoid listing with an agent or selling independently as an FSBO, which is a process with no guaranteed end date. The stress of a property lingering on the market is overwhelming, and the prep work and any repairs needed are typically costly and the entire process stressful. Yet, they believe it is the only way to sell the property and get their asking price. You can sell your property as-is through rent-to-own, even if it needs a lot of work. Given the law of supply and demand, you are in the driver’s seat at the bargaining table without any waiting in Fort Myers by selling rent-to-own.
Rent and Option Premiums
Here’s an expanded version of the text explaining the benefits of selling your home through a rent-to-own option in Fort Myers:
Traditionally, selling a house involves waiting for a qualified buyer to come along and secure financing. With a rent-to-own option, you can benefit upfront. In Fort Myers, sellers typically receive an option fee, a one-time payment from the potential buyer simply for the right to purchase the house at a predetermined price in the future. This fee can range from 1% to 20% of your asking price, putting a significant sum of money in your pocket right away.
There’s further financial security in the form of ongoing rent payments. The buyer will agree to pay a premium on top of the standard monthly rent. This extra amount gets credited towards their down payment if they ultimately choose to buy the house. Even if they decide not to buy, you keep all the rent they’ve paid throughout the lease period, along with the initial option fee. This provides a steady stream of income and reduces the risk of your house sitting vacant while you wait for a traditional buyer.
Core Real Estate Properties
Core Real Estate Properties is ready to buy your home, giving you the asking price via rent-to-own. Talk to one of the local professional home buyers at Core Real Estate Properties today. The professional home buyers at Core Real Estate Properties never charge commissions or closing costs to sellers, and there is nothing hidden in our contracts. You will have cash in your hands in a matter of days for your property and a guaranteed closing date. At Core Real Estate Properties, we are your neighbors who live and work alongside you here in Fort Myers, and we want to make a deal you will feel great about long after closing. Ready to learn more about selling your Fort Myers home via rent-to-own? At Core Real Estate Properties, we are happy to answer your questions without any obligation, so call Core Real Estate Properties at 239-360-3176.