Friday, June 24, 2005

Rent-to--Own: The Pros & Cons

Dear Readers,
I've always liked the rent-to-own or lease/option as a way to market unique properties, or homes where the seller really needs more than fair market value. I've done several of them with Wenatchee real estate and most of them have worked out fine. I think the national statistic for lease/options that actually close is about 20% but, if properly structured, offer significant benefits to both buyer and seller... and WILL close.

Lease/Options are rarely advertised because sellers generally want to sell outright and get out from under the monthly obligation. But, remember, with the obligation comes some significant tax advantages. Even in a hot, hot, hot real estate market such as we are experiencing now... there are properties so unique that stepping out of the main stream is required.

The other reason you rarely see them advertised is because most real estate agents don't want to bother with them. They don't understand how to put them together.. and, more importantly, think they won't get paid. I believe I am the only Wenatchee area real estate agent that actually promotes the rent-to-own option.

If you can find a buyer through a lease/option that 1) offers higher than market value, 2) provides an up-front (non-refundable) deposit and 3) payments to cover and exceed the monthly expense it can be a very attractive option to many sellers.

If you're interested in reading more information on the pros and cons of lease/options, here's a link to an article from the MrLandlord website.

Have a great week-end,

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