Pros and Cons of Selling Your House via Rent To Own in Orange County

Are you thinking about selling your house in Orange County? In addition to a traditional listing or a direct sale, you can sell your house via a rent-to-own agreement. For many people, it is proving to be the solution they have been looking for when it comes to selling their Orange County homes! Learn more about the pros and cons of selling your house via rent to own in our latest blog!

Have you ever considered using a rent to own agreement structure to sell your Orange County house? It can be an excellent way to sell if you do not the need the money from the sale upfront in its entirety. Here are a few pros and cons to consider before selling via rent to own.

Pros:

Get The Price You Want

When you choose a rent to own agreement as a way to sell your Orange County house, you will receive a good size deposit up front. In addition, the price of the monthly rent will be higher than with a traditional rental. You will be able to decide on the price you want and set the terms accordingly. The monthly rent will go towards the price of the house, and once the rental term is complete, the tenant has the option to buy at a predetermined price. No matter what the market does, you are able to secure the price of the house upfront.

More Potential Buyers

By setting up the sale via a rent to own structure, many more people will have the option to buy. There are tons of great people out there who want to buy right now but may not qualify for a traditional loan at the present moment. By allowing them to rent to own with an option to buy at the end of the rental term, you are letting them have some time to get their credit and finances in order so they can qualify for a loan to pay you the balance of the sale price.

Steady Income Stream

When you own a rent to own property, you are in essence, creating for yourself a monthly income stream, (well as long as the agreement is in place.) You will have highly vested tenants who will pay you each and every month to live in the home.

Good Tenants

If someone plans on eventually buying a home, they aren’t going to do anything to damage it. In fact, the opposite. Your tenants will want to take care of the house as if it were their own. They will also make sure to pay on time as defaulting on the rental terms can nullify the contract.

You Keep The Money No Matter What Happens

If at the end of the rental term, the potential buyer opts against a purchase, any monies paid will stay with you. You keep the amounts paid in rent as well as the initial deposit.

Cons:

It Will Take Some Time To Get Paid

You won’t likely get the full balance of the home for a couple years. If you don’t need the money for another purchase, this isn’t much of an issue.

No Guaranteed Sale

Your potential buyer could decline the option to buy at the end of the rental term. They might not be able to afford it, or they may have found a property better suited to their needs. This isn’t necessarily bad. If your buyer should fall through, you get to hang on to the deposit and raised rent that was collected.

Miss Out If Prices Surge

Because sale prices are locked in when the agreement is made, if the market goes up, you could miss out on extra profits. However, this goes both ways. If the market should drop, the agreed upon sale price will remain the same.

Do you want to sell your Orange County house? Have you considered all of the options available to you? Send us a message today with your selling goals or give our team a call now! 949-625-4533

Joe

Broker/Realtor/Investor/Mentor (41 years experience) Specialties: Buyer's Agent, Listing Agent, Foreclosure, Short-Sale, Property Management, Landlord I'm a Full Time Real Estate Professional, house flipper and mentor to many of my clients. I am here to help you get top dollar for your home or get you the best price for a home that you are going to live in. I have over 40 years of real estate experience for you to draw on and actively list and sell over 20 homes a year. I have sold over 600+ homes in the last ten years alone. I am a very skillful negotiator and will work diligently to help you realize the best possible price when buying or selling your home. With my Exclusive Home Acquisition & Sales System, I can find the Right Home for You! I have access to homes no other Realtor will show you. I can show you how to save an average of $10,000.00 on the purchase price. We will find a home that fits your needs, in a neighborhood that suits your style. If you are selling your home then I can bring all the professionals to you. I always include professional photos in ALL my listings. I have contractors standing by to assist with those upgrades if needed. I can also quickly get you ALL CASH offers for your home if you desire. My marketing surpasses all other agents. It begins with extensive internet advertising to hundreds of websites throughout the world. I do direct mail marketing for you home and also knock on doors in your neighborhood when I am holding an open house. I hold you home open to expose it to as many buyers as possible. My Exclusive program is designed to sell your home for Top Dollar in Any market. I am an experienced flipper here in Orange County and therefore can offer you my over 40 years of real estate experience. The information is available to you at no charge! If you like what you see, please call me and setup Your Free Consultation.

Get More Real Estate Market Info... Subscribe Below!

Learn more about us and find other resources on buying investment properties with us. Like us, follow us, connect!

Access Local CALIFORNIA Investment Property Deals...

Handyman Properties - Fixer Uppers - High Equity. *These are not on the MLS - Many are below $300k. Available properties on the next page.
  • This field is for validation purposes and should be left unchanged.