Dear Team Zuhl,
We want to sell our home but are having a tough time getting the price we want. Is selling our home as a “Rent to Buy” a good option for us?
Harry and Harriet Homeowners
Dear Harry and Harriet,
When you offer a Rent to Buy or Rent to Own agreement, you and the renters sign a contract in which the renter agrees to rent the property for a specified time, let’s say one year, at above the normal rent. The excess rent that they pay is credited after the length of the contract toward a down payment. After the rental contract is over and they have accumulated a down payment, they buy the house, usually at a price agreed upon when the home was originally rented.
This is a good option for you if your home isn’t selling fast enough and you can negotiate a contract that gives you the price that you want.
This is a bad option for you if you need the cash from the sale of your home to purchase a new home or for any reason. You won’t see full market value of your home for the term of the lease.