Plenty of people are putting up their homes for sale in Bergen county NJ, they often struggle to look for a buyer. Faced with a similar situation, many have turned to “rent to own” payment schemes in an effort to sell their houses. Although not the most traditional way of selling a house, using this structure when putting up your house for sale in Passaic NJ is worth a risk. We discuss the pros of using a “rent to own” structure in our post below.
“How to sell your house fast”
This is a very common search term in Google, regardless of the area. If that’s a problem for you, then you might want to consider selling your property via a “rent to own” structure. This is especially true if you don’t necessarily need the money upfront from a cash sale and perfectly fine with a long-term return for your investment.
Below are a couple of reasons why you should consider this method before putting up your house for sale in Passaic NJ:
You Get the Full Price
When listing a property or selling it for cash to an interested investor, you don’t always get the price that you want. But, with a rent to own scheme, you can, and you’ll probably be able to sell it for the full price.
Just like renting your house out, you can set a considerable amount of money for a sizable deposit, and the rest becomes essentially monthly rent and final payment. You can figure out how much by how long the terms of payment will be. For example, if you set the payment terms to three years, you can set an amount as a security deposit before they can move in. The remaining balance will then be divided into 36 months or 3 years, which will serve as the monthly payment, and a predetermined amount that will be paid in lump sum after the “monthly rent” period.
You can lay out all of this before the signing of the contract, and once you have come to an agreement, the final price of your property will never change, regardless of the market.
You Broaden Your Market
By putting up your house for sale in Passaic NJ via a rent-to-own agreement, a lot more people will be interested in buying it.
It’s no secret that the market is full of interested buyers that would’ve already bought their homes if not for a small financial mistake in the past that prevents them from applying for a mortgage. By putting up your property for sale via rent to own, such individuals can buy their own house, get their finances in order, and finally, loan money from the bank or a credit union to pay you the remaining balance after a few years. It’s also possible that an interested buyer has a good credit score, but just don’t have enough cash to apply for a regular mortgage.
Regardless, a rent-to-own option allows interested buyers to focus either on fixing their credit score or coming up with the money and eventually pay the outstanding balance and buy the property.
Your Property Generates Passive Income
Perhaps the best part of rent-to-own agreements is that you get a deposit, monthly payments, and the final payment for the outstanding balance. This means you have passive cash flow every month, which can help you financially and plan ahead better.
You Won’t Have to Worry About House Damage
Because your tenants plan on buying the house one day, they will take care of it as if it was their own! This lowers the cost for maintenance considerably.
Some tenants might even consider improving the house and making upgrades, further increasing the monetary value of your property. Of course, legally, they’re still required to clear any planned renovations with you first.
It’s a Win-Win Situation
If the tenant follows through and pays the final balance, great! Your property is finally sold, and at full market price at that! If not? That’s okay. Your property will remain yours until the tenant has paid the full balance.
Essentially, this means that you get to keep all of the money paid, including the monthly rent and deposit, if in case the tenant suddenly decides that they don’t want to buy the property anymore. The best part? You’re free to sell or rent the home again! While this doesn’t happen often, it’s nice to know that you can put your house for sale in Passaic NJ via rent to own and not have to worry in case the buyers or tenants change their mind.