The following post is brought to you by the friendly experts at Astoria Oregon Real Estate. Are you are looking to move to our beautiful area? Are you looking to sell your property and upgrade? Kyle and Alex have the answers you need!
Selling a home is very difficult in an economic downturn due to falling property prices, job losses and lenders not lending. A sell and rent back has grown in popularity as it allows that person to sell their home to a property cash buyer, get a quick house sale and continue to live there as a tenant. Also, a property cash buyer typically offers 75% of the properties true market value.
Benefits of Sell and Rent Back
- Prevents property repossession. A sell and rent back to a property cash buyer can help to prevent property repossession. Provided that a minimum of 25% equity is available, a quick house sale can halt repossession proceedings.
- Handled privately. There are no estate agent boards put up so the general public will not know that a sell and rent back is taking place. The entire process of selling property is dealt with privately.
- No estate agent and legal fees. A quick house sale performed in conjunction with a property cash buyer means that a sell and rent back avoids estate agent fees of 1-2% of the sale value.
- Sell a house quickly. Access to a property cash buyer means that the sale can be speedily completed. However, this allows the seller to reduce monthly bills or avoid property repossession.
- Affordable rent. A sell and rent back means that the seller normally enjoys lower rental payments and more affordable household bills.
Negatives of Sell and Rent Back
- Below market value. In order to attract a property cash buyer and secure a house quick sale, sell and rent back schemes usually involve selling a house for up to 80% of market valuation. Critics argue that it is possible to secure a higher price on the open market.
- Assured shorthold tenancy agreements. Those considering a sell and rent back should be careful to avoid assured shorthold tenancy agreements that only last for 6 or 12 months. Once this period elapses, it is possible for the new landlord to remove the tenant. Only accept a quick house sale from a buyer seeking to build a long term business relationship.
- Negative equity. A sell and rent back scheme will not be accepted by a property cash buyer should insufficient or negative equity exist. This is because all offers are below market value.
- Market regulation. There is very little sell and rent back regulation, leaving considerable scope for unscrupulous property cash buyers to operate.
- Complex rules. Sell and rent back scheme rules are complicated to follow for those selling a house. To make matters worse, they all use a different set of criteria and rules.
Which is the Best Option?
A sell and rent back scheme will allow those selling a house to avoid estate agent and legal fees, but most schemes will only offer 75% of the open market value. However, a quick house sale from a property cash buyer can help families avoid property repossession.
Additionally, those struggling to prevent property repossession should check to see if they have an unlawful mortgage agreement. This could mean that a homeowner gets compensation or even the write-off of the full debt in certain circumstances. This also applies to illegal loan agreements and unlawful credit card agreements.
Astoria Oregon Real Estate is the premier location for properties and information in the Clatsop County, Oregon area. Lead realtors Kyle Uchitel and Aleksandr Vasser are ready and waiting to assist new buyers or sellers in getting the most out of their property purchase or sale. Let Astoria Oregon Real Estate guide you on your journey!