Selling your house in Beaumont Texas can be very simple when your using a rent to own contract! There are a lost of excellent benefits to selling your house this way. Keep reading to learn more about some of these great benefits in our latest post!
Using a rent to own or lease to purchase agreement when selling your house in Beaumont can be an excellent way to sell your house. The benefits to you the home owner can be huge. You’ll be able to reach a lot more buyers, you’ll have a greater shot of getting your FULL asking price, and you will instantly turn your property into an investment asset that provides you with income month after month. If you need to sell your house in Beaumont don’t be to hasty to rule out a rent to own contract, it might be the home selling solution you have been waiting for!
LETS GET DOWN TO IT
Set A Realistic Down Payment
When getting a down payment or option fee in a rent to own contract, the number needs to be realistic and affordable. If a buyer isn’t able to qualify for a loan due to lack of down payment, they aren’t going to be able to come up with one for you either it is that simple. While you should always require an option fee from your potential buyer, make sure it is something they can afford. This way it is a win – win for both parties. Your have money up front and they have skin in the game.
Use A Comprehensive Agreement
There are a lot of things that you NEED to covered in a rent to own agreement. It is very important to have a detailed contract that covers common situations that buyers and sellers may face. By using a detailed and comprehensive agreement upfront, you’ll be able to total avoid any disagreements or disturbances down the road. Having everyone on the same page about who is responsible for what put everyone involves at ease. A few of the things to include in the agreement include…
Repairs & Maintenance – This is very 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 or potential new 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. Were as 6 months goes by and this happens it may fall to the maintenance of the new tenant owner.
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. The Aida Group likes to have everything escrowed. This means the taxes and insurance are part of their payment. Like in a loan. this way the new tenant gets use to having the same payment as when they will own it.
Lease Terms – Some contracts may only last a year and others can last as long as three. As the homeowner and now investor, 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. Personally we decide based on the house and the person. We want it to be a win – win for everyone. BUT the longer the term the more money YOU the seller make.
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. Remember it is always better to have and not need. Then need and not have. Also this make everything clear what is expected by both parties.
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? We are it Texas! 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, you can’t just go into an agreement with just anyone. You will need to do some research on your potential buyer by checking references and running background checks. We at The Aida Group us Screen the tenant. You will want to 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. Also you want to make sure they have the ability to qualify for a mortgage as well.
Consult A Pro
Hiring a professional such as The Aida Group to help you with the set up of your rent to own agreement is crucial when selling 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. 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.