Did you know that selling your honme in Edmonton, Edmonton can be straightforward when using a rent to own contract? There are several great benefits when selling a property this way that homeowners don’t even realize. Read further to learn more about some of these great benefits in our latest blog!
Selling your home in Edmonton using a rent to own agreement can be a great way to sell your house. The benefits to home sellers can be immense! You’ll have a wider buyers pool and you’ll have a greater chance of getting your asking price too! And maybe the best part…. you will instantly turn your property into an investment that provides you with income month after month! So if you need to sell your home in Edmonton don’t rule out using a rent to own contract; it just may end up being the unique home selling solution you have been waiting for!
Set The Down Payment At A Realistic Level
When using a down payment or option fee in a rent to own contract, the number needs to be realistic. 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. While you should require an option fee from your potential buyer, make sure it is something they can afford. Not something that will dissuade them from agreeing to the deal with you.
Make Sure Your Agreement Is Comprehensive
There are a lot of things that should be covered in a rent to own agreement. It is important to have a detailed contract that covers common situations buyers and sellers face. By using a detailed and comprehensive agreement upfront, you’ll be able to avoid any disagreements or disturbances down the road. A few of the things to include in the agreement include…
Maintenance and Repairs – It’s 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/potential 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.
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.
Lease Terms – Some contracts last a year and others last three. As the homeowner, 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.
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.
The 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.
Miscellaneous Situations – Depending on your property and where its located, there are several additional clauses you should write into your contract. For example, 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? 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 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. 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.
Consult A Pro
Hiring a professional such as Sunrise Home Buyers 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.
Further Reading
We know a thing or two about buying RENT TO OWN homes in Edmonton, Alberta. Click the link if you’d like to learn even more about avoiding any RENT TO OWN scams or purchasing an Edmonton RTO property.