Advantages of selling your house for lease with option to buy
If you own a home with property for sale, leasing may be one of your best options. The economy has changed drastically in recent years. Unemployment has reached record highs. Interest rates are low, but that’s not a factor since most homeowners are upside down on their mortgages anyway, thanks to the housing slump. Buyers in general have a harder time getting a traditional mortgage for a number of reasons.
Median home prices in some areas are down 25 to 50 percent. Home prices have dropped not because of a lack of buyers, but because of a lack of qualified buyers.
Foreclosures and short sales have also lowered home values. Homes are appraised by comparing the median sales price of homes in a specific area that are similar in size, condition, etc. Banks have a surplus of foreclosed homes in every community in the country, and their sale price is much cheaper. A regular homeowner cannot compete. This leaves the owner with a property that he cannot sell and, if he does, he gets a fraction of its real value. This is where leasing becomes an option.
Most leasing companies look for two types of buyers. Moving buyers tend to be excellent candidates for leases. Relocating buyers are looking to move quickly and start a new job while their old home is being sold. Most have no credit problems, but debt with income disqualifies them for a mortgage. The second type of buyers are high-income customers with some credit problems in the past.
The advantages for an owner willing to lease with an option to buy are many. You get the asking price and a good down payment that you keep whether or not the buyer exercises their option to buy. Another plus, most leasing companies will help buyers improve their credit scores. If buyers are serious about financing, their credit scores are usually repaired by the end of the lease period. The lease period usually lasts no more than two years. No commissions or closing costs for the seller is another great incentive. Closing costs are in the thousands. Commissions for real estate agents are around five percent of the selling price of the house. These two factors alone save the homeowner typically $10,000 or more.
National online leasing companies are ideal for sellers and buyers who are considering leasing as an option. Seventy to eighty percent of all homebuyers look at homes online before viewing a home, as reported by a consumer research agency.
In conclusion, leasing to own is a great option for homeowners selling their property and buyers looking to close quickly. Not all programs are for everyone, so find the best program that meets your particular needs. It should be easy with the large number of companies providing services in this niche. I hope you have found this useful. Good luck!