Are you planning on selling your Charleston house? There is a way to sell without listing or selling for less than retail.
Who Should Do It?
- People who want to sell their house for a specific price
- People who don’t want to wait while their house sits on the MLS
- Anyone who wants to sell their Charleston house for retail value
- Anyone who doesn’t need the full value of the property up front
How It Works
To put it simply, a rent-to-own contract would look something like this: First, you would set the final price you want to be paid for the home. You will most likely find many buyers who will agree to your asking price, in exchange for the opportunity to own a home of their own. From there, we will set a down-payment or deposit to be paid upfront buy the potential buyer. This deposit is non-refundable unless otherwise negotiated.
We will set up a monthly payment plan to last over a specific period of time, typically 1-3 years. During this time, the prospective buyer will pay an elevated monthly “rent” payment. A portion of this monthly payment will go toward the final sale price of the home. By allowing them to rent-to-own, the tenant will have the time to save up, repair their credit, or fix whatever was stopping them from qualifying for a loan previously.
Once the rental period is up, the remaining balance is owed for the sale to be final. The prospective buyer can pay the balance, or default, leaving you to keep the down payment and any other amount paid toward the purchase of the home.
- You will be able to sell to a large group of people who previously weren’t able to purchase your home
- You turn your unwanted Charleston house into an income producing asset, providing you capital each month for the next few years
- You receive a lump sum payment up front, and a lump sum payment at the end of the rental term
- You are able to get retail value for your home
- You lock in the sale price from day 1, so even if housing prices fall, you will still get the original price for the home
- The tenants are much more likely to maintain the house and take pride in its condition
- There is no guarantee that your potential buyer will qualify for a loan once the rental term ends
- You lock in the sale price from day 1, so if housing prices go up, you will still have to sell at the originally agreed upon price