If you're having a tough time
selling your house and want to move without making dual house
payments, then the lease option might just be the right solution
for you. With the lease option, a would-be buyer agrees to
lease your property for a set period of time and purchases from you
the option to buy the property at the end of the lease term for a
mutually agreed upon, fixed price. The buyer pays you a
move-in "option" fee and above-market rent, with the "above"
portion and the "option" money going toward the down payment should
the sale take place at the end of the lease period. If the
buyer decides not to buy the house, the seller retains the "option"
and the above-market rental monies. The time period of
these lease options usually ranges between one and three
years.
The lease option provides the seller with many advantages in
addition to the central one of having someone pay your mortgage on
a
hard-to-sell property. Because lease-option tenants
hope to purchase the property at the end of the lease, they have a
vested interest in taking better care of the property than most
renters. Also, the seller retains all the income-tax benefits
of the house during the lease period.
If, on the other hand, you need all the money from the sale of your
home immediately, than you're better off with a straight
sale. Also, the majority of lease options aren't
exercised, which would necessitate starting the whole selling
process all over again after the lease term expires. When you lease
your home, you are also still responsible for paying the property
taxes, insurance, and most major repairs during the lease
term.
To find someone to lease option your house,
advertise by newspaper, real estate trades, or online. If
your house has been on the market for quite a while, chances are
would-be renter buyers will approach you. When this happens,
make sure to do a background check on all applicants and check with
a loan officer or mortgage broker to see if they are pre-qualified
to get a mortgage when the lease period expires. Also,
protect yourself by having a real estate attorney review the final
contract.
Learn more about selling a home from our real estate experts:
http://www.videojug.com/search?keywords=sell+house
