Have you heard the buzz on the Internet? Perhaps you have received a flyer in the mail that invites you to sell your home to an investment company and then rent it back from them. This may have prompted you to ask: “Why should I want to sell my house and rent it back?” Conversely, you may believe that this is an option only those teetering on the edge of foreclosure could possibly be interested in. You will be surprised to find out the answer!

§  You should sell your house and rent it back if foreclosure is imminent. If you are measuring the time between today and the issuing of an order for foreclosure in days or weeks instead of months or quarters, you no longer have the luxury of waiting and you must act now.

§  You should sell your house and rent it back if you realize you can no longer afford it, but if you wait for the best time to sell, you are likely to miss out on the currently favorable market conditions. This is especially true if you have children and do not feel right about moving in the middle of the school year, but realize that in order to maximize your fiscal gain from the transaction you must sell now, not six months from now. Having the option to sell and rent back your home makes this possible.

§  You should sell your house and rent it back when you will relocate for business. Generally speaking, you will receive about one to four months warning about such a move, but in today’s slowing economy this is barely enough to list your house on the market and then continue on with the closing once it sells. Instead, you may find that as the moving date draws nearer and still no offer has been made on your home that feel is acceptable, you are becoming desperate. Take the stress out of the process and sell the home and then stipulate the rental agreement to permit you to stay long enough to cover the time up to your actual relocation move.

§  You should sell your house and rent it back if your neighborhood is taking a nosedive with respect to property values. The odds of selling your home on the open market will be next to impossible, and the longer you wait, the lower the value of your home will drop. Get rid of the home today and walk away with at least a modicum of cash out of the equity you have still left. Rent back your home until you have found another home to purchase or rent at your leisure. 

As you can see, the question “why should I sell my house and rent it back” has more than one answer, and depending on your fiscal situation, you will find that many a reason is actually quite valid and will be a worthwhile and rather cost effective move for those contemplating it today rather than waiting much longer!