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Seller Mistakes to Avoid with Real Estate for Sale by Owner in Rhode Island

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If your goal is to sell your home as a for sale by owner listing, you should be well prepared several months in advance. There are three way that you need to prepare yourself for this type of transaction: emotionally, physically, and financially. During the long period of months and weeks that it will take in order for you to sell your home, you will need to work in all three of these areas in order to accomplish a successful transaction. Here are four big mistakes to avoid with real estate for sale by owner in Rhode Island to help you have a smooth and moreit’s satisfying transaction.

  1. Setting a High Price

Sellers who do not seek the advice of a professional real estate agent are required to do their own research to determine the right price to set. This research involves comparing similar homes in the area to find out what they are selling for. It is good idea to look at the most recent sales available and also take a look at listing prices for other houses on the market that are similar to yours in terms of location, size, and condition. This information will help you determine what price to set for your home. If your price is set too high, the cost you a lot of time and money because your house will sit on the market longer. You do not want your house to become a stale listing because it sat on the market too long.

  1. Not Prepping the Home for Sale

Since you are selling the home as for sale by owner and may or may not be working with an agent, one of the most important things you must ensure is that your house looks in its best possible condition which means it must be empty of clutter and completely clean. However, you must also remember that you should not spend too much money on trying to fix up the house because you may not always get a return on your investment. It is a good idea to concentrate on inexpensive improvements such as cleaning baseboards and walls, adding a fresh coat of paint, improving the landscaping, or polishing the faucets and door handles.

  1. Not Enough Photos

These days, most homebuyers begin their search for a new home by going online. When doing so, the first thing they want to see are the photos in order to determine which properties the buyer may want to see in person. You always want to make sure that you include several photos with any online listing. These photos should showcase your home in a way that makes it look very attractive to buyers who are browsing the Internet.

  1. Not Making Sure That Buyers are Qualified

One of the risks when selling a home as for sale by owner is that many sellers failed to get proof from potential buyers that the sale will actually be successful. Before taking your home off the market as being sold, you should always make sure to get a prequalification letter from any potential buyer. Failing to do so may result in the risk of a failed closing and you may lose the motivation to continue marketing your home for sale.

Real estate for sale by owner in Rhode Island can be handled easily with the help of a real estate professional. There are many companies in the Rhode Island area that provide FSBO assistance to sellers who would like a smoother transaction. Contact a local agent to discuss your options and learn the best way to sell your home quickly and easily.

Advantages When Buying Rent To Own Homes in Rhode Island

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Moving into a new home is probably one of the most important decisions you can make your life. If you live in the Ocean State or planning to move there soon, there are several options available in terms of finding an affordable way to purchase a new home. One option that many homebuyers choose to consider is rent to own since there are several advantages from this type of option that is available for homebuyers. It is important to carefully weigh all of your options before agreeing to any contracts. Here are some of the advantages when buying rent to own homes in Rhode Island.

Option Premium

When beginning a transaction for buying rent to own homes in Rhode Island, there is usually a requirement that the buyer must pay an option premium to the seller. This payment gives the buyer the option to purchase a home at some determined time in the future. Although it is nonrefundable, this payment can be applied towards the purchase price. Once the buyer decides to buy the home, there will not be a need to pay a high cash price. Option payments are usually applied using low percentages, around 5% (give or take), but some sellers do tend to charge higher option payments which can be a risky decision for buyers since this money cannot be returned.

Chance to Opt Out

When you choose a rent to own option, you have the choice to walk away if you find that something is seriously wrong with the property that you purchased. However, not all rent to own contracts are the same. It is important to find out if this option is included when deciding on a rent to own agreement. Most contracts that include this option will require that you lose all credited money as well as the option fee so it is important to understand the agreement clearly. On the other hand, if decide to opt out, the amount lost will be much lower than buying a house outright and attempting to leave later.

Purchase Price for the Home

When negotiating a rent to own contract, both the seller and the buyer agree to a set purchase price for the home. Depending on the negotiation, the buyer can purchase the home for a set price at some point in the future which is usually between one and five years. When agreeing to a set price, the price that is agreed upon may be higher than the current price. If the price of the home goes up in value at a rate that is better than the buyer’s expectations, then it is a huge advantage in favor of the buyer. If the price of a home goes down in value, the buyer/renter will more than likely choose to not buy the home.

Rent to Own Home in Rhode Island Advantages

Buying a rent to own home in Rhode Island is probably one of the biggest purchases you will ever make. Choosing this type of buyer/renter arrangement by making a monthly contribution in the form of rent is an excellent choice for some types of homebuyers because of its advantages. By choosing an agreement to pay rent that is partially credited towards the final purchase of your home, you can reap the rewards of homeownership in a short period of time.