Once For Sale, Then For Rent, Finally Sold RTO
When home sales are slow, it's the perfect time to find rent to own houses. That time is now.
There is a natural trend growing with home sellers across the country. More homes sit listed for sale over extended periods of time, with little or no action from buyers. Unfortunately, many sellers try a number of tactics to draw interest in their listings, before turning to rent to own homes. To try to encourage buyers, sellers may try:
- Switching agents
- Creating elaborate staging
- Changing pricing
- Spending more on marketing
- Running more open houses
- Delisting and relisting
This can go on for months on end. Over time it wears down a seller and burns more of their money. Frustrated sellers often opt to change their listing from Home For Sale to Home For Rent. This might help generate some cash flow for the seller. But renting alone doesn't help reach their real goal: selling the home.
Changing the listing into a rent to own home is a much better approach. And with more motivated sellers ready to give up and lease the home, there's more opportunity for buyers looking to rent with an option to buy.
What kind of home listings make great candidates as homes for rent to own? Here are some examples:
- Homes listed for sale over 120 days with no offers or failed offers
- Homes that have re-listed with differernt agents over time
- Areas that have homes listed for sale and already have homes occupied by renters
- Homes that were listed for sale and have re-listed as for rent
- For Sale by Owner (FSBO) listings
Putting the house up as a rent to own under a lease option to buy is a great solution for sellers. Doing so keeps the home occupied by a responsible tenant, brings in monthly cash flow and finally sells the home to the rent to own home tenant The same tenant-buyer who was looking to buy in the first place!