How to Sell Your House by Lease
Options
by: Caterina Christakos
Many people buy a house then have to move within a
few years, due to divorce, relocation or financial
difficulties. Without any equity though, it can be
nearly impossible to find buyers and you still have
realtor fees to contend with. There is a simple, easy
way to have your payments taken care of for you and find
a buyer, so that you can move onto your new life quickly
and easily.
Homeowners can sell their homes by lease option.
What are the benefits of selling my house on a lease
option?
When you lease option your house, you sell the right
to purchase your home at a set price within a
predetermined period of time. During that time, the
purchaser of the lease option pays you a set monthly
fee. They pay what amounts to their “rent” to you
with the provision that they can purchase your house
within a certain period of time and have part of the
rent that they have paid you applied to their final
purchase price.
Q What are the advantages of selling my home by lease
option over listing it with a Realtor?
By selling your home in this way, you avoid realtor
fees and some other closing costs. You also have a
tenant who intends to purchase your property. They will
take better care of the home than a renter would and may
even fix it up a bit for you. You also, naturally, have
your payments taken care of and keep the tax benefits of
owning your home, until the final sale.
Q How long does it take before your tenant/buyer
cashes me out?
A That depends on a number of different factors. Many
people with less than perfect credit can rebuild their
credit and receive a mortgage from a mortgage broker
within 6 consecutive payments.
Q Why don’t I just sell the house myself?
If you have little or no equity in your home, it will
not be considered a good investment by most buyers.
Q What if my tenant/buyer doesn’t buy the house?
A It is important to pre-screen buyers to make sure
that they want to buy the house and are able to buy it
at some point in the future. However, circumstances can
change in someone’s life, such as an unexpected job
transfer, that make it necessary to move. In situations
like that, a new tenant buyer would have to be found.
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