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There are four main ways people sell houses these days, each with their own Pros and Cons. Most people know about selling with a realtor, selling FSBO (For Sale By Owner) or even getting a cash offer from an investor looking to make a profit. However, a little known secret, and potentially the way to squeeze the very most money out of your property possible is through a Lease Option, also known as Rent-to-Own. We will explain below a little more about what it means to Rent-to-Own, but first let's look at some numbers and see what I'm talking about.

To the right (or below on a mobile device) you will find an app that will compare for you the net proceeds you would make using each of these four methods of selling. You will plug in certain details about your property (asking price, repairs needed, mortgage balance, taxes etc.) and you can compare the estimated net proceeds to you depending on the way you choose to sell your home. If you click on "Get Your Full Analysis" you can print a copy of the PDF showing all of the comparisons in more detail. 

*Certain factors are assumed based on national averages (length of time needed to sell, realtor commission, investor discount etc.), and may not reflect your exact situation.

Pros and Cons

Let's take a closer look at some of the Pros and Cons with each of the different methods of selling.

Realtor

PROS

  • Professional service

  • Likely to sell more quickly than FSBO

  • Help getting the best price

CONS

  • Expensive

  • Must keep house spotless for showings

  • Can still take a long time depending on the market

FSBO

PROS

  • Less likely to sell (only 15% of FSBOs sell)

  • No Realtor fees or commissions

CONS

  • Takes longer to sell (or may never sell)

  • More work for you (marketing, showing, qualifying buyers etc.) 

Cash Offer

PROS

  • Fast

  • Good way to take care of properties that need work

CONS

  • Must sell at a large discount

Lease Option

PROS

  • Sell at full price

  • Keep an asset that produces monthly cash flow

  • We screen and qualify tenants for you

CONS

  • Will not cash out immediately

 
 

What is Rent-to-Own??

What is Rent-to-Own and why would I consider selling my house using this method? If you are wondering the same thing, you have come to the right place! We are going to break it down for you into simple terms, hopefully answer any questions you have, and help you to determine if this method of selling makes the most sense for you at this time.

Rent-to-Own is a method of selling your house wherein you rent your home to a Tenant-Buyer for a period of time before they complete the final purchase. This method allows you to have your mortgage payments taken care of by the rent payments and often gives you some additional cash flow during the option period. The Tenant-Buyers consider themselves to be future owners of the property, so they take care of maintenance and typically take much better care of your property than a typical renter would.

 

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