Considering selling your San Antonio area house? Think about a lease option to get the price you want! Find out more in our newest post!
Lease options can be a much better selling technique than most people recognize. It will help you get the very best price overall while providing you with extra earnings until your house has officially sold. Below we will respond to a few of the most common concerns we see about how to use a lease option to sell your house in San Antonio.
What Is A Lease Option?
A lease option will enable a possible buyer to lease the property for a specific term, with the option to purchase at the end. The lease will generally last 1-3 years and if they are not able to buy it at that point, the property will stay in your name and everybody can move on. During the lease term, the tenant will pay you a “rent” that is usually higher than average. Some contracts are arranged so some of this money goes toward the down payment if they opt to purchase. Nevertheless, whether they choose to purchase or not, the amount you have collected during the rental term is yours to keep. So in any case, you will come out ahead.
How To Set It Up
It is very important to set the right terms from the very start. You want to make certain both parties have a clear understanding of their obligations and the timeframe in which the contract covers. In many cases, you will set up a standard rental contract, with an option to buy at the end. There are a couple of crucial differences with a rent to own agreement as compared to a basic lease. To begin with, the renter will likely be accountable for the repairs to the property. This will equate to much more cash that will remain in your pocket throughout the period of the lease. You will likewise need to choose how funds will be designated. While the rental payments are normally higher than typical each month, you will need to decide where that money goes. Will you reserve a percentage to go towards the tenant’s future down-payment? Or will the lease payments end up being pure profit for you? Some contracts will likewise require a down payment or deposit of sorts to ensure good faith by the tenant.
A Whole New Market Of Buyers
Utilizing a lease option will open your home up to an entirely new market of buyers. There are lots of people out there who are prepared to buy but are not quite able to get the funding they need. They are good people, who might have an imperfection on their credit report from years earlier. Or perhaps they have actually been struck with unexpected debt, keeping their loan from going through. By renting your property with the option to buy, they will be able to get their credit and finances in order, buying your property outright when the time comes. This opens the door to an entirely new group of buyers who might have an interest in your home.
What’s The Risk?
There actually isn’t one. Worst case scenario, they don’t wind up buying your San Antonio home at the end of the lease. You will have made some great money, and the home will still be yours to do with as you please. You can decide to list it on the MLS with an entire brand-new pool of potential buyers, you can lease it out in the conventional way, or you can take on another potential rent to own tenant. No matter what, you will still come out ahead.