Search our Article Directory:

Home | Finance | Real Estate | Selling


2 Situations When Sale and Rent Back Is the Wrong Choice

By: Carl Robinson

This article assumes you understand the sale and rent back process and will discuss 2 scenarios where selling and renting back your property is most likely not the best solution. If you are in these situations it is advisable you look at the alternatives which are suggested.

If you can reduce your monthly outgoings

Some people may find that they can reduce their monthly outgoings by consolidating their debts to a rate that is more affordable. This does not mean taking out more debts to pay off existing ones but getting all existing debts onto the best interest rate possible. If financial difficulties are causing you to consider sale and rent back it is often worth while looking at loan consolidation as a possible alternative.

This may allow you to keep ownership of your house but it does not guarantee that your future outgoings would be less than if you sold and rented back. If you are not sure what to do, it may be worth getting a rental quote from a rent back specialist (the good ones will give this free) and compare it to your potential outgoings if you consolidate your loan. This way you will be able to make a more informed decision.

When you want to get full market value for your property

If you want to get the best possible price for your property then sale and rent back is most probably not for you. Sale and rent back companies are not able to offer you 100% of the market value of your property due to the costs they incur buying it and the profit margin they need. Those companies that say they will offer 100% of the market value and rent your property back to you are most likely not telling the truth. They are trying to get their foot in the door and then will offer less. If they did offer 100% of the market value they could not survive as a business as they would incur a loss for every property they bought. Reputable sale and rent back companies normally offer up to 80% of the properties value.

You need to make sure you sell to a company that (1) is honest and upfront with you and (2) has a sound business model because if they go out of business there are going to be complications with you staying in your house.

If you want the best price possible for your property and do not need to stay in it then selling via an estate agent is the best solution. If you want the best price for your property, do not want to rent back and need a quick sale then a cash buyer is often the best solution. Many rent back companies can offer this quick cash sale service.

The bottom line is: sale and rent back is not the solution for those wanting full market value for their property and beware of companies that say they can offer this.

Article Source: http://www.articlekingpro.com

Carl Robinson is an experienced UK property consultant who works for Quick Homebuyers. If you want to sell and rent back your property or want to find out more about how to rent back your house visit the website for a Free Report and a no obligation sale and rent back offer.

Please Rate this Article

 

Not yet Rated

Click the XML Icon Above to Receive Selling Articles Via RSS!
Additional Articles From - Home | Finance | Real Estate | Selling
Sign Up for a free Article King Pro account or learn more.
Submit Articles
Member Login
Top Authors
Most Popular Articles
Submission Guidelines
Ezine Notifications
Article RSS Feeds
About Us
Link to Us
Contact Us
Copyright & DMCA
Privacy Policy
Terms of Service


Most Recent Articles

Powered by Article Dashboard