The Trusted Home Buyer Logo602-456-4440

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

Martin Boonzaayer

December 4, 2019

Are you thinking about selling your house in Phoenix? 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 Phoenix 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 Phoenix 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 Phoenix 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 Phoenix 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! 866-488-9923

Explore more

December 15, 2021
How To Sell A Hoarder Home

The traditional way of selling your home might work for some, but what if you are dealing with costly home repairs or own a lot of stuff. If your home is full of things that you have collected over the years, it can get overwhelming trying to navigate home showings, listings, and everything else that […]

Read More
December 10, 2021
The Merger and Acquisition of urapc.org and thetrustedhomebuyer.com

Now you might ask why would a home buying company like The Trusted Home Buyer acquire a domain with the name "urapc.org"? Good question and we will get back to it in a bit but first, let's talk about the history of this domain. The furthest record we could find about urapc.org dates back to […]

Read More
November 19, 2021
Write For Us

We welcome individual bloggers / Professional Writers / Freelancers to submit high-quality content. You can submit for consideration an original article that is not already published anywhere else, even on your website, with content based on your personal experiences and professional expertise. We will review the article and publish it if accepted. We reserve the […]

Read More
July 30, 2021
How to Sell Your House Webinar With Martin Boonzaayer
Read More
The Trusted Home Buyer Logo
Copyright © The Trusted Home Buyer
WE BUY HOUSES IN:

4.7 61 reviews