We buy houses in South Fulton Georgia (Fulton County). Thinking of Selling? We are local homebuyers in Georgia and we can help you! As an alternative to traditional home sales, the rent-to-own market is not widely known or understood but also should not be overlooked.
With the COVID-19 pandemic, lots of people are now finding themselves with credit history issues and may only be in a position to rent instead of buying a house for the first time in many years. Is your property been sitting on the market? Does your house need costly renovations or updates you can’t afford to do? Are you perhaps a landlord with tenants that are interested in buying your property? Have you recently inherited a property and want to sell it?
5 Reasons Why Homeowners Should Sell Their House in South Fulton GA With a Rent to Own Agreement
There are many reasons for selling in today’s market. Yes, some are related to financial problems but others are because of the normal process of life, job transfers, growing families, school systems, etc. If you want to evaluate all your options to sell your house in South Fulton, maybe you should consider selling your home as a lease-purchase transaction. Through a rent-to-own agreement, you have the advantage of maintaining control of the property and setting the terms of the agreement, generally for a period of between 1 to 3 years. This option is also viable when your home needs repair or renovation. If your property needs repairs, there is many a willing tenant willing to opt for “elbow grease” credit for work completed on the property. While there are a number of good reasons to consider selling with a lease-purchase aka rent-to-own agreement, I want to go over the top 5 reasons why homeowners should sell their house in South Fulton with a rent-to-own agreement.
Higher Price of South Fulton Property
If you are willing to work with rent-to-own type buyers, who typically might have issues qualifying for conventional loans, you’re in a position to demand a higher price for your house. Because you’re locking in the price at the sale date for the term of the lease, you are insulated against any downward trend in real estate values. By setting the sale price at a rate of the market price in the future, you guarantee appreciation even if market pricing declines. Despite this future pricing, bear in mind most tenant/buyers will need financing to purchase and the property will have to appraise for your sale price in order for the purchase to close. Locking in future value is reason 1 why homeowners should consider selling their house in South Fulton with a rent-to-own agreement.
Expanded Market in Georgia
Buy offer to sell with a lease-purchase/rent-to-own option, you expand the pool of potential buyers and the likelihood of better offers. Many buyers with less than perfect credit or who are going through a financially unstable period in the current economy have fewer choices and less leverage and negotiating power and homes offering rent-to-own are often the only homes those seeking homeownership can buy. A lot of younger people who currently have been quite happy as renters are making the move towards a more permanent residence, looking to raise families and not be forced to move from rental to rental. By opening your potential market wider, you’re much more likely to get a solid future buyer and at the same time help a family transition from renters to homeowners. These prospects make you desirable as occupants of your property. With a broader buyer base, your home is much more likely to sell quickly. This is the reason 2 homeowners should think about selling their house in South Fulton with a rent-to-own agreement.
Continued Tax Deductions
While some income you receive may reduce the deduction, you may still claim tax deductions on the property while under the lease portion of the transaction. Any interest on your mortgage, expenses relating to repairs, taxes, HOA dues, etc., can be deducted. Along with the ability to write off interest on any remaining mortgage loan you carry and operating expenses, you’ll continue to benefit from depreciation. You can depreciate your home’s value (excluding the cost of the land) over 27.5 years and deduct depreciation expense. This is a non-cash expense…meaning you aren’t actually spending the money…and that can make a big difference on your taxes. An example is as follows…if your home’s value (excluding land cost) is $275,000, then dividing that value over the deductible period of 27.5 years yields a depreciation expense of $10,000/year. If your rental income is $1,000 a month or $12,000/year and you can deduct $10,000 for depreciation, you show income on your tax return of $2,000 but you have $12,000 in your pocket. There is a downside to this when you sell because depreciation expense is required to be recaptured and lowers your basis for capital gains when you sell. Still, typically if your capital gains rate is a lower tax rate than your marginal one, you win. This is a 3rd reason why homeowners should consider selling their house in South Fulton with a rent-to-own agreement.
Income Stream of South Fulton Houses
Given your ability to hold the property, rather than an outright sale, you’ll be able to earn a steady income stream during the term of the agreement, while the tenants rebuild their credit to purchase the home. In addition to the profit, you’ll realize from the sale, you can also charge a higher monthly rent rate than average. Many homeowners charge an above-market rent but allow a portion to be credited against purchase price so as to allow the tenant to build equity in the home while living there. While a portion of the rent income will apply towards your buyer’s investment, the remainder of the passive income can help you to continue to live your dreams or even invest in more real estate. If the tenant doesn’t ultimately buy the house, you keep the extra rent as well as any down payment they have paid. This is another very motivating factor for homeowners to consider selling their house in South Fulton with a rent to own agreement.
Pride of Ownership
As your buyers intend upon becoming the owners of the property, the likelihood of the home being well cared for is higher. You’ll find that without any prompting, maintenance and routine tasks are carried out by the tenant. Often they will ask if they can improve the home or spend money on things in anticipation of those efforts being theirs once they purchase. Further, these tenant/buyers won’t allow typical tenant-related damage to occur because they’ll be acting quickly in the event of plumbing emergencies, roof leaks, and other potential disasters. Unlike typical renters, a rent-to-own agreement may also enable it so that your tenants can be made responsible for repairs and maintenance. (This varies by State.) Knowing your investment will hold its value because your tenants care about the property brings peace of mind. This is the 5th and likely most important reason homeowners should consider selling their house in South Fulton with a rent to own agreement.
Sell My House In South Fulton GA
Maybe you don’t want to be a temporary landlord or can’t afford to lease the home now and wait for a sale in the future. If that is the case, Resideum, South Fulton home buyer, can offer other solutions that can fit your needs. We can do sale/leaseback, outright cash purchase and other solutions that can get you cash for houses in South Fulton fast or that will fit your plan. If you want to talk to us about your home, we are ready to listen and anxious to buy it. Call or email us today and see what Resideum can offer for your home. To learn more about us and what we can do, contact us, email us or call (678) 710-6130 today. We will make the process simple so you can quickly sell your house in GA and move on!
Greg Kurzner, is CEO of Resideum, Atlanta’s Professional Homebuyer company. Greg has been a force in Atlanta real estate for over 30 years. He has been involved in the sale of over 1 Billion in real estate transactions in his career and consistently ranks #1 in sales by units by Atlanta Realtor Association. In addition to Greg being a licensed real estate broker, he is also a licensed general contractor and a nationally-recognized expert in investment real estate.