Have you Inherited a Deceased Estate?

Inheriting real estate is a very big event. There are many issues surrounding this, especially if there are a few different parties involved in sharing the proceeds of the sale of the property. Sometimes the property will have debt attached to it and other times the property will stand free and clear of all debt.  

Much of the estate may be easy to dispose of or distribute, but rarely is that the case with real estate holdings.  Many times selling the real estate can take months. Often family members or the parties involved with the selling of the real estate wish for the sale to go through quickly so the liability can be turned into a cash asset.

Rent to Buy systems can give people in this situation an option to selling the traditional way using a real estate agent. Much money can be saved from not having to pay out huge sums in real estate agent commissions. The parties involved will just need to sort out if they have the emotional strength required to advertise, show and sell the property themselves without using a middleman (the local real estate agent).

Not only will many thousands of dollars be saved by avoiding using a real estate agent, but the best possible sales price will be achieved. If choosing to use a real estate agent, you will be "quoted" a high listing price (so that the agent can "win" the listing), and then the agent will condition you down in price over time (agents will tell you this is what the market is saying!) 

Keeping the sale of this inheritance in your own hands keeps you in control. Selling real estate is not as hard as many people think. You will reap much greater rewards selling yourself rather than trusting and relying on a real estate agent.

Rent to Buy systems require the seller (or sellers) to be flexible with terms. This usually means that the Rent to Buy buyer will need extra time to settle than what a traditional sale requires. A traditional sale settles in between 4 to 6 weeks, once finance is in place. In a flexible terms sale, settlement can take anywhere between 2 to 7 years (sometimes longer). Sometimes it may just mean being flexible with some of the available equity, and make seller finance available as a short term loan to a new buyer.

In a flexible terms sale, the price of the property is agreed upon and documented into the legal paperwork at the beginning of the term. The length of the term is agreed upon also, as with any other terms and all are documented into the Contract. Contracts are then signed and exchanged. Settlement then does not occur until whenever the end of the term agreed upon arrives (the Rent to Buy buyer would then have presented themselves to a bank or lender and obtained bank finance to enable settlement to take place).

The reason why a Rent to Buy buyer cannot obtain bank finance at the beginning of the deal is because they either have no or not enough deposit saved, or have credit problems that they need time to pass to be removed from their credit file. There are many, many people with very good incomes that cannot purchase property (but would love to if they could find their opportunity) because of lack of deposit or credit issues.

The Rent to Buy buyer would pay monthly payments for the agreed period of the term. This would be monthly positive cash flow for the seller/s if there was no debt on the property. If there was debt on the property, the repayments would be set to cover the repayments for the loan. The Rent to Buy buyer would also cover all outgoings on the property such as rates, insurances and maintenance for the period of the term.

Selling using a flexible terms sale provides the seller/s with regular monthly payments, no outgoings at all for the property, the price hoped for or needed is achieved with no real estate agent fees or commissions to be lost from the profits. The Rent to Buy buyer in return for this, would be needing flexible terms (a delayed settlement for between 2 to 7 years, sometimes longer).

The Rent to Buy buyer is able to access and use the First Home Owners Grant (if they are first home buyers) to use as a deposit for the transaction. This would be paid directly to the seller/s.

With a little bit of creativity (using Rent to Buy systems), a much better outcome can be achieved compared to selling traditionally, for the small price of being flexible with terms. With a deceased estate, this would only be achievable if all members of the family were agreeable to the terms of sale.

Our DIY Rent to Buy manual covers in great detail the different types of Rent to Buy deals and how to implement them.