Why do people consider rental return sales?

In a struggling economy, you may have seen the quick-sell ads from companies like “We Buy Ugly Houses.” This practice of post rents has become a fairly routine part of the home selling culture for a variety of reasons. To avoid foreclosure, some people choose this option. There are advantages to this in some cases, and other times it is simply an act of desperation. Knowing the advantages and disadvantages will help someone make a fully informed decision before making a mistake.


Job loss, excess outgoing income, and divorce are some of the reasons sellers decide to use a rent return option. There are entirely personal reasons why people decide to take on the potential loss of property value in order to sell it. Many are trying to avoid foreclosure, and this buys time.

When considering a rent return option, you may choose to stay in your home as part of the negotiations during the sale. However, when you choose to do this, you will have to pay rent. Expect to pay market rate rent for your area, but keep in mind that short-term rent can be a couple hundred dollars extra; but with this comes the convenience of not finding short-term living arrangements.

ADVANTAGES (for the seller)

There are many reasons why people may take this option. Some of the advantages may offset the quick sale or lower profit on the house. One of the reasons a seller may choose to rent the house he has sold is to allow the children to finish the school year before moving. This teaches the stress of many families knowing that a mid-year change is not necessary.

Another reason may be the construction of a new house. Since there are often unforeseen construction delays, having the option to stay for an extension after the sale makes life so much easier. Even without construction issues, some sellers want to sell the first home before looking for the new home. By being able to rent the first house, they are free to look for the right place to move. This gives the seller an advantage when buying a new home.


If you sell your home to an investor, you are subject to their selling the property. This can make it difficult to extend lease periods. This is also a problem if the loan is contingent on the new owner taking possession of the property. You should find out about the problems before reaching an agreement with a potential buyer.

Another tricky situation develops when you consider that these homes are often sold “as is.” For the purposes of the contract, both parties must decide when the period IS as is. Who will be responsible for any repairs that may arise? Attacking these questions early on will help avoid tricky legal questions later.

Should you quickly sell your house and rent it back? There is no easy answer. You should consider all the options and decide which route will serve you best. This could be a good option, or you can go for a regular offer. Research all of your options before making a decision.

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