Seller FAQ

The Company

Are you a local company? 

Yes, We are located in NW Houston.

How long have you been in business?

We have been in business for more than 30 years.

What are the hours of operation?

8am-8pm Monday through Saturday.

What kind of sellers are you looking for?

We are looking for sellers who are willing to wait a few months to sell their home.

Do you work with out of state owners?

Yes. As long as an out of state owner is all right with handling minor landlord  responsibilities, then we would love to help them sell their home.

What kind of homes are you looking for?  

Currently, we are focusing on single family homes. However, we would be willing to help sellers with townhouses or condos.

I owe more than the home is worth, am I eligible to rent-to-ownmy home?

Yes. You may need to extent the option period for a few years, but you would still be able to get what you need for you home.

How did you build your buyer’s list?

Advertising. We have spent a lot of time and money in our advertising for buyers. We have also established a pretty significant referral program to help build this list. Also, we have networked with Realtors and mortgage brokers.

How do you structure your Lease Purchase Option program?

We purchase the option from the seller, advertise to our buyer’s list, get an approved tenant-buyer, then assign our option to that tenant-buyer for a fee. The seller gets a security deposit and rent, and House 911 gets the option fee. This way the seller gets the price they want for the home, the tenant-buyer gets a home they can Lease to Purchase, and we get compensated for our services.

How do you advertise my home?

We will take a lot of pictures, do a video tour, and send it to our buyer’s list first. Then, we’ll aggressively advertise via websites, signs, mailers, etc.

My situation is a little unusual, can House 911 helpme?

Yes. We specialize in helping people with unique situations sell their home.

Are you a real estate agent?

No. We have partnered with several real estate agents to help assist these transactions.  However, the seller does not pay any Realtor fees.

Do you have references?

Yes. Go to our testimony page to review what people have said about our program.

Are you going to giveme a “low ball” offer onmy home?

No. We actually don’t make you an offer at all. You tell us what price you need to get for your home.

Isn’t rent-to-own/ lease-purchase option just a scam?

No. Even though, there are some companies that are reckless in their lease purchase transactions and try to prey on uneducated tenant-buyers, we only approve tenant buyers who have a good chance of buying the home. We educate and equip our tenant buyers with a mortgage broker that is an expert at getting them qualified and a credit coach that is excellent at getting people “mortgage ready.”

This sounds too good to be true, what’s the catch?

We get that all the time. There is not catch. It’s just a non-traditional way to sell your home. And given the current market, it’s been a popular one.

Who works on your team?

We have a great team that has been equipped to specifically handle our Lease Purchase program. We have administrative assistants, mortgage broker, credit coach, and the owner is very hands on the process.

What does your team do?

Administrative Assistants – Processes information, answer questions, send contracts and help buyers and sellers through the process. Schedules photo and video shoots, advertises to buyer’s list, schedules showings, and assists buyers and sellers in closing.

Mortgage Broker – Runs credit report, develops a timeline for getting qualified and assists buyers with the mortgage process.

Credit Coach – Review buyer’s credit profile, develops an action plan for improving credit profile, and assists buyers in becoming mortgage ready.

Owner – Oversees the Lease Purchase process, answers difficult questions, and assists buyer and sellers through the rent-to-own process.

Who will I be working with during this process?

You will be working with the owner/Field Assistant who will show you the home and an Administrative Assistant who will help you fill out the necessary paper work and get your application processed.

The Process

How does rent-to-own work?

You rent your home to a tenant-buyer who wants to buy it for a set price within a set period of time.

What is my next step?

Fill out a Home Seller Information Form and Property Information Form. This is the first step in doing a Lease Purchase Option. We need to know certain things about your home so we can accurately advertise it to our buyer’s list.

How long does it take to find someone for my home?

Within 3 weeks. We regularly find tenant-buyers that our sellers approve within a few days. We usually don’t take home that we think will take longer than 3 weeks. Because we work on volume, we can’t afford to waste time on homes that will require more time.

What are the steps to Lease Purchase my home?

Step 1 – Fill out Property Information Form

Step 2 – Sign Agreements

Step 3 – Schedule Photo and Video Shoot

Step 4 – Approve Tenant-Buyer

Step 5 – Close

What’s the worst case scenario?

The worst case scenario is you have someone else pay your mortgage, they leave without buying the home, and you have to try to sell it, rent it, or rent-to-own it again.

What’s the best case scenario?

The best case scenario is someone buys your home at retail value, not pay realtor fees and your situation with this home is relieved.

When do you come tomy home?

We come to you home to do a photo and video shoot. We will take a lot of pictures and do a video tour of your home. We like to do video tours, so people can virtually “walk through” the home before we schedule a showing. It saves us time and our sellers some frustration if the home is still occupied.

Will you handle the showings?

Yes. We require every potential tenant-buyer to view the video tour before we schedule a showing. We don’t want to waste our time or frustrate our sellers with “tire kickers.”

We will call our sellers to schedule a showing. Once, we are at the property we will call our sellers to let them know we are at the home. Then, once we leave, we will call again to tell our sellers we have left. That way you will always know when we have left your home.

Do I sign over ownership of my property to House 911 or the tenant-buyer?

No. You will retain ownership of your property until the tenant-buyer purchases your home. If the tenant-buyer doesn’t exercise their option, you still have ownership.

The Money

How do you make money?

We make money from the tenant-buyer that we find who you approve. We will be taking the option fee as or compensation for advertising and cultivating our buyer’s list.

How much does it cost me?

Nothing! We get paid by the tenant-buyer we find for your home.

Are there realtor fees?

No. When the tenant-buyer closes on your home, it will be handled with a title company and therefore, no Realtor commissions.

Now, if you have a realtor and you would like to pay him/her, then that is your prerogative. However, our typical rent-to-own seller does not pay Realtor commissions.

Are there closing costs?

Yes. Like every real estate transaction, there are closing costs that are the seller’s responsibility and closings costs that are the buyer’s responsibility. However,these closing costs are always negotiable.

I don’t have any equity, am I eligible to do a Lease Purchase onmy home?

Yes. By doing a rent-to-own on your home, you will save in realtor commissions and concessions. The price you need to get for your home is what you get for your home.

However, if you owe a large amount more than it’s worth, you may have to extent the option a few years, but you would still be eligible for rent-to-own. Fill out a Home Seller Information Form & Property Information Form and we will let you know what we think.

What money do I get?

You will get a security deposit (usually the amount of one month rent) and first month’s rent.

What money do you require from the tenant-buyer?

We require a security deposit, first months rent, and an option fee. The security deposit and first months rent will go to the seller. The option fee will go to House 911 as compensation for advertising and the services provided.

The Documents

Do I have to sign an exclusive agreement?

No. Our program is non-exclusive and there is no obligation. If you sell your home before we find a tenant-buyer or if you rent it before we find a tenant-buyer then our agreement expires.

What documents will I need to sign?

To start, the only documents you will sign is the Cooperative Lease Option Agreement, which gives us permission to advertise your home and explain our program, and the Option Agreement, which gives us the “option” to purchase your home.

Additionally, once a tenant-buyer is approved, you will sign a Lease Agreement, which allows the tenant-buyer to rent the home from you, and a Notice of Acceptance, which indicates you have accepted the tenant-buyer to our program.

Do I have to cancel my agreement withmy realtor?

No. If you want to allow your realtor to receive commissions once the home is sold, then that’s your prerogative.

Will I be able to review your documents?

Yes. Our documents have been drawn up by a local real estate attorney and he would be more than happy to explain everything in our documents so you fully understand.

Can I use my own documents?

No. However good your documents may be, we have spent a lot of time and money to compile documents that will protect both our sellers and our buyers.

However, we can add, under our attorney’s consideration, certain clauses to our documents. Also, you could take your documents and show them to our attorney to see what area’s may need more attention.

Why do you separate the lease from the option agreement?

Because they are two separate things. The Lease allows a person to rent the home from you and live there. The Option allows someone the exclusive right to purchase the home for a set price within a set period of time.

Are your documents compatible with Texas law?

Yes. We have a local attorney who specializes in Texas real estate. He has drawn up every document we use, and has designed them to protect sellers, buyers, and House911.

The Tenant-Buyer

What is a tenant-buyer?

A tenant-buyer is someone who rents a home with the intention of quickly buying that home. They will be renting the home while they have an “option” to purchase the home at a set price within a set period of time.

What if the tenant-buyer you find damages my house?

This is a possibility, however it’s not probable. The tenant-buyer is someone who has put security deposit, rent, and an option fee into the property. Typically a tenant-buyer treats the home very good because they plan on buying it themselves.

Also, there is risk of any tenant damaging your home. We try to mitigate this by doing credit checks, background checks, employment verification, references, and getting a security deposit and option fee.

What kind of people do you find as tenant-buyers?

They are good people with good money that just need a little time to get “mortgage ready.” Sometimes it’s issues like being self-employed and just need time to meet mortgage qualification. Or, it’s credit issues like medical judgments that need to be repaired.

How involved is House 911 after we “close” with the tenant-buyer?

We remain involved through our credit coach and mortgage broker. They send us monthly updates on the progress of the tenant-buyer to make sure they are getting mortgage ready.

However, once we close with an approved tenant-buyer, the seller will still own the property and have minor landlord responsibilities.

How do you work with your tenant-buyers?

We get them connected to a mortgage broker that analyses their ability to get a mortgage. We also require them to enter a credit repair program where a credit coach will give them an action plan for getting “mortgage ready.” We also educate them about our rent-to-own program so they know what they are doing.

The Option

What is an option?

An Option gives the tenant-buyer the right, but not the obligation, to purchase a home for a set price within a set period of time.

What happens if the tenant-buyer doesn’t buymy home?

Then their option expires, and you can do with the home what you want. You’ve had someone pay your mortgage, property value may have gone up, and you could try to sell it, rent it, or rent-to-own it again.

How does the “option” work?

The Option will give the tenant-buyer the exclusive right but not the obligation to purchase the home at a set price within a set period of time. If during that period of time, the tenant-buyer wants to purchase the home, then they will secure financing and purchase it at the price set in the option.

Example:

Option Price – $250,000.00

Option Duration – 12 months

Expiration Date – 2/28/2011

Can I sell my home once I have a tenant-buyer in it?

Yes, but only to the tenant-buyer. Once an option has been given to a tenant-buyer, they have the exclusive right to purchase the home until the option expires.

The Lease

Am I still responsible for repairs?

The Tenant Buyer is Responsible for repairs.

What are rent credits?

Rent credits are given to tenant-buyers to help them add money to their down payment if they pay their rent on time.

CAUTION – regarding rent credits. If you give a rent credit to a tenant-buyer and have structured it to go against the purchase price, then you are giving that tenant-buyer some equitable interest in your property. The danger comes in if that tenant-buyer stops paying rent, then you have to foreclose instead of evict because they have equitable interest. Foreclosures are time consuming and expensive. Evictions are quick and less expensive.

*we add it to the security deposit instead of the purchase price. That way when the tenant-buyer is ready to buy, they have cash they have built up in the security deposit to act as their down payment.

I’m a little hesitant to be a landlord, is doing a Lease Purchase a better option?

Yes. If you have not been able to sell your home traditionally, then Lease Purchase is a better option than a typical rental. You will get better tenants who take better care of the home and pay their rent on time. Even though you are still being a landlord, there is hope that they will purchase the home in a few months.

What if the tenant-buyer pays rent late?

Then they will not receive a rent credit for that month. You can collect a late fee. If you choose, you can cancel the option. If they do pay, we recommend not canceling the option.

What if the tenant-buyer stops making rent payments?

Call our office and we’ll walk you through it. But, you’ll evict them and cancel their  option.