A Guide To Selling Your House And Renting It Back
The world has just gone through one of the worst recessions since the great depression. Financially, times have become very hard for many people. Debts and bills are holding many people back from truly being able to enjoy their life. If you are in a situation where governments, agencies, and banks all seem to be harassing you for your hard earned money, then there may be a way out if you are a home owner. It is called Sell and Rent Back and it can be the solution to your financial problems.
‘Sell and Rent Back’ is exactly what it sounds like. You sell your home, only to rent it back at a price that is usually more manageable than your mortgage. ‘Sell and Rent Back’ companies buy the house below current market value. They typically pay around 60% to 70% of what the house is worth, although there are occasions when a house may sell for even less. A few S&RB companies do offer to pay the full house value at a later date. Once you’ve sold the house. You are still allowed to live in the house. However, your status changes from home owner to renter.
There are many benefits to selling and renting your house, but these three are really crucial. First of all, if you have any pressing financial obligations and need a large sum of cash relatively quick, then ‘Sell and Rent Back’ is an option that you should be considering. It is one of the quickest ways to come up with a substantial amount of money which you can use to settle pressing financial issues.
Second, you won’t have to relocate because you are allowed to continue living in the house. That is something you should consider if you have a family or live near your workplace. Finally, ‘Sell and Rent Back’ companies strongly believe in keeping all of these transactions in house. If you don’t want your neighbors or friends to find out that you are no longer a home owner, then there is no reason to tell them.
First thing you need to do is find a reputable Sell and Rent Back company. This isn’t a transaction you should trust with some shady business that doesn’t really have any solid history. Find a company that has been in business for a while and has gained a solid reputation. This is a largely unregulated field, so beware of companies who only view you as their next paycheck. Before you agree to work with an S&RB company, be sure to check the background, credit history, and whether it has any outstanding debts. If the company can pass all of those preliminary tests, then you can move on to the next stage of the process.
After you find a company, you still need to be active in the buy and sell back process. That means reviewing contracts, terms and conditions, and any important documents that will affect you. You have to be able to stand up for what you are trying to accomplish when you come up with something that might not be beneficial to you. Reading all the fine print will help protect you from signing contracts that might end up hurting you in the long run.
Next : Rent Back
A Guide To Selling A House Yourself
First of all, you have to draft a comprehensive selling plan to sell your property. It goes without saying that you have to be motivated enough in your plan to make it a success. Only a fully convincing reason or a decision can help you locate your goals – your true aspirations and quests in selling. Once you have figured that out it will be easier for you to strike the right note.
In most cases, people sell their property – home, building, penthouse or condo to buy another one. It’s important to select a prospective buy before you start with the selling process. Weigh the prices – the selling price you have ball parked and the price you have to shell out for buying. You have to make a judicious decision after looking at the market prices.
Talk to real estate agents. Get in touch with people who can give an overview of the target neighbourhoods. Ask each agent to give you a marketing plan that explains the strategies they will employ to market your home. In addition, ask agencies to prepare a comparative analysis of market rates for you.
Some of the steps you need to integrate in your plan are:
Preparing your property for sale:
The first step would be to dissociate your attachment from the property you are trying to sell; especially if it’s the home where you live. Pack up personal artefacts and photographs from the walls and corners as you have to give the buyer space for imagination.
Remove junk items that might be lurking around and remember to de-clutter the space. Doing away with clutter will ensure in giving volume and dynamism to the space you will be showing off.
Next in order comes cleanliness. Clean sideways, moped lawns, smooth staircases, neat furniture, clean and waxed floors, cobweb free walls, clean refrigerator, shining kitchen and room cabinets, faucets and rugs, fresh towels hung in bathrooms, clean utensils and sparkling windows give the best impression of your property and let the buyer curl up in desire for it.
Replace cracked floor or counter tiles.
Fix leaky faucets.
Fix doors that don’t close properly and drawers that jam.
Paint your walls if the existing paint appears to be tattered.
Replace burned-out light bulbs.
Measures like these will make the buyer feel the sincerity of your proposal and will bring in a comfort factor for her as there wouldn’t be much to repair after moving in.
Pricing your property well is the next step to consider. You have to be careful about agents who might overbid in fear of losing out in competition to one another. The best bet is to price your home reasonably instead of overpricing it.
Talk to lending institutions to get a brief of the existing financial offers, if you need to. Go through mortgage loan types thoroughly before selecting one.
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