Not a day goes by that you do not hear or read something about how the housing market it doing. Its no surprise. What was once a hot market has cooled and most economic indicators are less than positive about the immediate future of real estate.
As housing inventory increases, so has the marketing time. Millions of homeowners who must sell their homes are faced with the option of holding on to the home or dropping the price in hopes to attract one of the few qualified buyers that are out there.
While lowering the price might be a good option, not everyone has the equity in their home to do this! This is especially true in markets that have experienced dropping values. For those that do not have the flexibility to lower their price, selling with a Lease Option or Lease Purchase may be a good alternative.
By utilizing a Lease Purchase or Lease Option, you can sell quickly and get full market value for your home. That does not mean you can over inflate the price, but it should help you avoid taking a loss on the home.
There are several benefits of selling with a Lease Purchase. Unlike renting, when you sell with a lease purchase, you get someone who is serious about owning a home. This typically means that they will take better care of your home than a renter would. After all, someday it will be their own!
A key benefit to selling with a lease purchase or lease option is the ability to utilize a triple-net lease. When you do this, the tenant buyer becomes responsible for the maintenance on the house.
One key thing to check is the tenant / landlord laws in your state. Many states will hold you accountable for major issues with the home, regardless of what your contract says. The best way around this is to purchase a home warranty and provide the tenant / buyer with the information.
Avoiding paying realtor commissions is another advantage of utilizing a Lease Option to sell your home. If you are currently trying to sell by owner and do not have you home listed, you will receive 100% of the sales price when the buyer finally gets a mortgage. Most companies that run lease option programs get 100% of their fee from the buyer. So the monthly rent payment and end sales price are all yours!
Even if your home is listed, selling with a Lease Purchase can be a good solution for both you and your realtor. Typically, they will get cash up front, just as they would if they rented the home. Although they will have to wait for their full commission until the buyer closes on the mortgage, most agents agree that this is a good option for everyone involved.
Creative strategies are essential in a competitive market! By using a Lease Purchase or Lease Option, you can sell fast for full fair market value!