Regan on Real Estate

Times are tough, and selling a property may be just as tough (possibly tougher) than buying one. Fortunately, there are a lot of options available to both buyers and sellers that will lessen the overall financial burden for both sides.

One of these is renting-to-own/sell. Here’s how it works. For example, you own a house and want to sell it because you’ve already got a new one. Instead of selling it outright, you find someone who pays a non-refundable down payment, while also giving payments monthly (essentially, he’s paying you to rent the house, except a part of the rent goes to the down payment total).

At the end of a specified time period, the renter decides whether he wants to buy the house or not. Most people eventually buy the house since they’ve already shelled out a significant amount of money for it. If they don’t buy the house, you get to keep the down payment. Ideally, it’s a win-win situation.

The trick is finding the right renter, someone who at the end of your agreement will probably be able to get a loan and afford your property.

Of course, you have to remember that this is just one of your many options. But considering how tough it is these days, it probably is your best option.