There is a ton of confusion about rent to own houses in Grand Rapids. At first glance, they seem overwhelming. How do you set them up? What paperwork do you need? What kind of title transfer occurs, and when?
These are all FANTASTIC questions. But to start, let’s begin with the basics. If you’re selling your home, why would you want to sell it as a rent-to-own?
1. Speed
Selling your home traditionally can take a looooong time. Depending on the market, your home, your asking price, competition, and many other factors, it can take a long time to get an acceptable offer.
Once you receive an offer sheet, it’s still not over. There’s the inspection period, potential for further negotiations, title work, and more. Combine these things together, and you can end up waiting months to get your house sold.
In many cases, this long wait is just not an option. If you need to move for your career or family, for instance, speed can be crucial. If you have to move in days or weeks, the traditional methods of selling may simply take too long.
Making two mortgage payments can be brutal, and selling your house as a rent to own in Grand Rapids can be a very good alternative. By offering your house for sale as a lease option (another term for rent to own), you expand your buyer pool.
Most of the time, this results in a quicker sale, and less stress.
2. Equity
Many homeowners don’t have a lot of equity in their houses. Some may have bought their home recently, and haven’t had much time to pay down the debt. Others got stuck between an rock and a hard place with the recent market downturn.
Whatever the case might be, it can be hard to sell your home when you have little to no equity. Between title fees, buyer concessions, commissions, and the many other costs associated with selling a house, many sellers are forced to bring money to the table in order to close.
This can be a bitter pill to swallow.
Selling your house as a rent to own in Grand Rapids can be a good solution. By locking in your sale price higher than what you owe, you can avoid paying money to sell your home.
In addition, as the tenant buyer makes payments, you are able to further reduce your balance owed, improving your equity situation.
3. Ongoing Cash Flow
Maybe you’re ready to sell, but speed and equity aren’t your concerns. Perhaps you’re a landlord who’s tired of the grind, and want someone else to handle repairs, maintenance, and shoveling our Michigan snow off of the driveway.
However, having monthly cash flow can be great. Selling your house as a rent to own can be the best of both worlds.
In most rent to own houses, the tenant buyer is responsible for maintenance and repairs, because they are working to buy the home. That means they will take care of the water heater, rake the leaves, and plunge the toilet.
However, you get to keep receiving checks every month, with much less hassle.
Selling your house rent to own can be a great idea in the right situation. If you’re in a jam, or just need a break, definitely look into them closer.