5 Tips For Selling Your House Via A Rent To Own Contract in Denver!

5 Tips For Selling Your House Via A Rent To Own Contract in Denver! Selling your house in Denver can be simple when using a rent to own contract! There are a number of excellent benefits to selling this way that homeowners don’t always realize. Keep reading to learn more about some of these great benefits in our latest post!

Using a rent to own agreement when selling your house in Denver can be an excellent way to sell your house. The benefits to home sellers can be huge. You’ll be able to reach more buyers, you’ll have a much better shot of getting your asking price, and you will instantly turn your property into an investment that provides you with income month after month. If you need to sell your house in Denver don’t rule out a rent to own contract, it might be the home selling solution you have been waiting for!

Set A Realistic Down Payment

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.

Use A Comprehensive Agreement

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…

Repairs & Maintenance – 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.

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 its location, there are miscellaneous things you should include in your contract. Like 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 Metrowest Real Estate Services 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.

Use a rent to own contract to sell your house in Denver! Contact us today for more information!

Ken Blevins

Ken Blevins, CEO of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 24 years of experience in collections, foreclosure/bankruptcy, loss mitigation and real estate disposition (REO). Blevins was an original co-founder of Metrowest in 2003, a Real Estate Brokerage and Services Company focused on the resale, recovery and liquidation of distressed real estate in Denver, Colorado and surrounding metros. Blevins assumed the role of CEO in January 2014 and provides strategic direction and has management accountability for the day-to-day operations. Under his direction, Blevins drives all default management operations to maximize asset value recovery and reduce loss severity through a strategy focused on customer service and state of the art technology. Blevins has 18 years of direct operational experience in all facets of REO Asset Management having managed large national REO Disposition contracts for Fannie Mae, Freddie Mac, Wells Fargo, JP Morgan Chase, CitiFinancial, GMAC Mortgage and other various financial institutions. Blevins specialties include REO asset management, real estate investment, bulk REO acquisitions and distressed asset recovery and liquidation, and he has directed the resolution and liquidation of over ten billion in institutionally-owned residential real estate.

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