If you need to sell your house urgently to settle a financial liability then you need not move out of the home. This is entirely possible if you enter into a sell and rent back agreement. What this entails is that you sell the house and transfer the property title to the new owner. Then you rent out the home by signing a rental lease with the new owner of the property. Therefore, you are now a tenant and not the owner of the property. This arrangement is very feasible for someone who has suddenly been hit by a financial crunch and does not otherwise want to move out of their home and dispose off property. Here are the details, step by step on how the sell and rent back works:
- Contact your estate agent and get a market analysis of comparable home sales in your neighbourhood so you have an idea how much your property is worth.
- Call a sell and rent back company and get a free consultation. You may want to speak to several companies to compare services. Be sure to get references. There is no stress and no obligation.
- A confirmation letter will be sent you immediately.
- After you select which sell and rent back company you want to work with, the company will send a property assessor to your home to appraise it.
- An Agreement in Principle will be presented to you for your signature. All you have to do is sign, date and return it to the buyer/investment company.
- The company will present you with an offer generally within 24 to 48 hours later. Simply accept or refuse the offer.
- If you decide to accept their offer, the sell and rent back company will do all the paperwork for you and hire the attorney. This takes the burden off of you. Because they are experts at this process, they will be able to explain the process and answer your questions.
The property is closed within a week, and the money is deposited into your bank account. There are no fees or real estate commissions to pay. No annoyances and disruptions of buyers walking through your house. You remain in your home and pay monthly rent typically at a reduce rate. If you have rental property, your tenant remains in the property and can negotiate with the new buyer after their lease expires. If they are on a month to month, then the tenant can either move or stay.
Sell and Rent Back is a strategy that is getting a lot of attention these days. Due to the state of the economy, more and more distressed property owners are looking for fast solutions to sell their real estate. Whether the reason is to pay their mortgage balance off to avoid repossession, or to take extra cash out of their home and put it towards paying bills, college expenses, a vacation or retirement, the sell and rent back program is an instant solution to help you accomplish your needs and goals. The scheme works for your primary residence or rental property. Most Hua Hin Property seller are delighted to take your rental property with a tenant already in place.
How Sell And Rent Back Agreement Works
Ideally you should locate brokers who handle this kind of property transaction frequently. This will allow you to save time on the sale and rental process because they will already have buyers approaching them for this specific kind of deal. It takes time for a broker to build their reputation in this market and when investors approach them for the sole purpose of picking up a good home at a bargain price they often look at putting it up for rent quickly. The main reason for this is to start earning rental income on an investment property immediately. It usually takes 5 to 10 business days for a quick sale of property through a reliable broker. You should usually be able to get your money within 24 hours of the sale and this is normally transferred into your bank or you are provided a banker’s check for the amount due towards you. A good thing about selling your house and renting it back is that no expenses are liable on you. The broker is responsible for paying the solicitors fee and surveying cost. Further, you should be able to process the rental lease simultaneously as soon as the sale of the house is confirmed.
Benefits of Working with a Professional Broker
A good thing about hiring professional brokers is that they give you updated and comprehensive market information regarding the value of your property. The property is not evaluated simply on an aggregate of the market returns. However, a professional broker will always evaluate the property individually specially in the case where you’re looking for quick property sales. It is essential to find out each and every positive aspect of your property in terms of the location, covered area, specific enhancements that you’ve made to the property and then compare it with those available on the block. This will actually help you derive the best value for your home. However, the final price that you receive will depend on the time duration you want to sell your property in along with the rental agreement that you strike with the new owner.
A registered broker will ensure that the quick sale of your house is smooth and convenient. Apart from this the broker takes care of all the documentation required for the sale and rental of the property so there is no hassle on your side.