Lease-Option – The Other Way to Sell

In most real estate markets nowadays selling your home has become much more difficult. As we watch with our own eyes our property values are decreasing rapidly.

On top of that there are numerous bank owned properties out there yours will not even be noticed.

The banks usually reduce their prices about every month till the properties are sold in most cases in our current market situations. Can you afford to reduce your value every month to keep up with the competition? If you’re lucky enough to own a significant amount of equity in your property you just might be able to keep up but for how long.

Sit back in your chair and consider other ways to sell your property without taking a loss. If you’re able to you may simply rent out your property. In a best case scenario the rent are going to be able to cover a majority of your monthly costs. Then you’ll just sit back and wait out this storm for several years. In a worst case scenario you do not have a lot of time left and a renter wouldn’t pay that a lot of for your property.

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In both good and bad situations a lease-option is another strategy you’ll use to sell your property. There are many different benefits to a lease-option. The most vital one is that you can sell your property for higher than market value. the amount of rent received is also higher in this situation. You’re going to turn this bad situation into a win-win situation for you and your potential buyer.

Potential buyers are everywhere out there! they just need a little help. They have good paying jobs, but have had some challenges in the past. Usually they have a below average credit score which impairs them from getting a loan on their own.

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A lease-option is basically is a rent to own situation. You’re planning to rent the house out for the future purchase price’s payments. Yes, people will pay the higher rent! they’re not renters they’re future homeowners. You will usually sign a lease with them for about 24 months. It all depends on how long it’ll take for them to qualify for a loan to buy your home. It’ll be up to you to set them up with a mortgage broker that will be able help them purchase your home in the future. Ensure that the person you choose if on the correct path will be able to purchase the property in the end! they will also pay you a non-refundable option up front. The amount usually is around 3 to 5 % of the purchase price. The option money received is yours if they purchase or not. If they do purchase, the option will be deducted from the purchase price at closing. If they do not purchase and decide not to renegotiate then the option payment is yours to keep.

Source: ezinearticles

If you break it down the positives are higher rents, maintain property better than renters, depreciation, and higher purchase price. The worst thing that could happen is that they wreck the house and you have insurance for that. If they do not buy, you get to keep their option consideration and they paid your payments for twenty-four moths. Hopefully in the end they will be able to buy yours.

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