Can I Sell My House and Rent it Back?
With foreclosures and a slumping economy dominating headlines across the globe, there is no doubt that homeowners are concerned. Nothing is more frustrating than the realization that you may need to sell your home, displace your family, and spend weeks or months finding a new place to live. However, because so many homeowners have expressed an interest in the ability to sell their homes to someone else while renting it from the new owners, the industry has streamlined the possibilities.
If you have ever asked yourself, “Why can’t I sell my house and rent it back from the new owners?”, the following information is for you! In an effort to keep homeowners informed of their selling options, we have compiled a list of key components that will entice prospective buyers, significantly reduce the time associated with property sales, and of course, help you pocket the equity that you have created during your ownership period.
Understanding the Market
The real estate market hasn’t exactly been a booming industry over the last decade. Because of a slumping economy, decreased lending, and corporate streamlining, many families have been hit hard by the recession. This means that the amount that was paid for a property is seldom what is received upon selling it. However, the “sell my house and rent back” arrangements will often generate 80-85% of the property’s value, giving homeowners an attractive sales option.
Why is the reduced price a key element in the arrangement? The answer is simple: risk. Property investors understand that we may have not yet seen the “bottom” of the real estate market, which means that there is considerable risk in purchasing homes today. But, by helping to reduce the risk by lowering the overall purchasing price, and further reducing it by having a rental tenant in place, owners can avoid the turbulent market and make a quick sale. When foreclosure is a possibility, this is an attractive prospect!
Comparing Closing Costs
Because you are a homeowner, you understand how expensive closing costs can be. From the realtor to the lender, it seems that everyone has a hand out waiting for their piece of the pie! However, when using these rent back concepts, no upfront money is necessary! This helps to entice the buyer and speed up the process in general. Investors have their own professionals in place, as their legal representation and appraisal organization will be covered on their end. This means that as a seller, you are absolved of any related fees, and can move directly to negotiating the rental agreement and sale details.
If you want to sell your house and rent it back, remember that there are several details that will ultimately determine the success of the transaction. Make your property as enticing as possible, be clear in your advertisements that you are interested in a “rent back” plan, and you’ll quickly find the perfect buyer. This will save you time, frustration, and most importantly, money!
If you have ever asked yourself, “Why can’t I sell my house and rent it back from the new owners?”, the following information is for you! In an effort to keep homeowners informed of their selling options, we have compiled a list of key components that will entice prospective buyers, significantly reduce the time associated with property sales, and of course, help you pocket the equity that you have created during your ownership period.
Understanding the Market
The real estate market hasn’t exactly been a booming industry over the last decade. Because of a slumping economy, decreased lending, and corporate streamlining, many families have been hit hard by the recession. This means that the amount that was paid for a property is seldom what is received upon selling it. However, the “sell my house and rent back” arrangements will often generate 80-85% of the property’s value, giving homeowners an attractive sales option.
Why is the reduced price a key element in the arrangement? The answer is simple: risk. Property investors understand that we may have not yet seen the “bottom” of the real estate market, which means that there is considerable risk in purchasing homes today. But, by helping to reduce the risk by lowering the overall purchasing price, and further reducing it by having a rental tenant in place, owners can avoid the turbulent market and make a quick sale. When foreclosure is a possibility, this is an attractive prospect!
Comparing Closing Costs
Because you are a homeowner, you understand how expensive closing costs can be. From the realtor to the lender, it seems that everyone has a hand out waiting for their piece of the pie! However, when using these rent back concepts, no upfront money is necessary! This helps to entice the buyer and speed up the process in general. Investors have their own professionals in place, as their legal representation and appraisal organization will be covered on their end. This means that as a seller, you are absolved of any related fees, and can move directly to negotiating the rental agreement and sale details.
If you want to sell your house and rent it back, remember that there are several details that will ultimately determine the success of the transaction. Make your property as enticing as possible, be clear in your advertisements that you are interested in a “rent back” plan, and you’ll quickly find the perfect buyer. This will save you time, frustration, and most importantly, money!
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