8 Ways To Help You Decide To Sell Your House To A Lease Option Or Rent To Own Buyer

Lease option or rent to own buyers are easy to find. They are out there by the thousands trying to think of a way to buy a home that doesn't require them to get a loan. If a buyer doesn't have at least 10% for a down payment and golden credit the chances of them getting one is almost zero. Many of them have some money and average credit and given a little time will be able to qualify for a loan. These are your buyers. especially if you're still trying to sell your house and can't even get anybody to make an offer on it at any price? Read on for what may be the perfect solution to your problem.

Unfortunately right now you're in the same boat as a lot of other sellers out there. Don't take it personally; it's not that they don't like your house it's mainly because they can't qualify for a loan. Lenders have tightened the requirements so much that many possible buyers can't meet them at present. This will change with time but of course that doesn't help you now. I would imagine that you'd agree that it will be at least 2 or 3 years before real estate starts to return to normal. If this seems about right to you then here is a solution to your selling problem.

The name of the game at this stage of the real estate melt down is lease with option to purchase. This is also known as the lease option or rent to own. A lease option has a lot going for it as far as being able to help you as well as a buyer. Here is a simplified example of how it would work: find a renter who would also like to be a buyer and lease your property to him for an agreed upon amount of time. For them to be able to buy the property you get an option fee of roughly 3%-5% of the selling price and because you are helping your lessees buy their own home you can usually charge a premium price for the property.

You can also normally get a higher lease payment especially if you offer them a credit if they pay on time. This does a number of things. It helps you by giving you more money each month, makes them pay on time and gives them more of an incentive to purchase. It helps them by having a forced savings account and gives them a much higher return on that savings than they could get a bank. All they would have to do to get the credit pay the rent on time and honor any other stipulations in your lease agreement. If they default you can evict them and keep all fees and extra lease payments. The option fee is yours to use without having to pay taxes on it while they are leasing the property.

If you have a fixer property you can have someone do the repairs in lieu of the option fee. Even if it's not a fixer there are usually things that can be done to make the property more valuable. Letting the lessees make the improvements will increase their desire to own that home even more. There are a number of ways this can be negotiated, just make it good for both of you.

Here are 8 ways that a lease option may solve your problem:

1. Instead of renter you have a future owner who'll treat the property as their own.

2. The tenants will take care of all the repairs up to a certain amount.

3. You can sell the property for a higher price than normal.

4. You get upfront money which you can use to make payments, pay taxes, etc.

5. You can get a higher lease payment than what you could rent for.

6. You know you either have a sale or the option fee and extra rent is yours to keep.

7. If the lessee's live up to the agreement you can be fairly certain of a sale.

8. If you move out of the area you have less worry than with a renter.

Most people want to own a home and if they are real serious they might even have some money saved which they can use for the option fee. Even if they don't and you show them how they can buy your house they will usually figure out how to get enough to get started. Even if they don't have money they might be able to do some repairs or improvements instead. You can also raise the rent and use the extra money as part of the option fee. You could also loan it to them and add it to the price. Make sure they give you some collateral such as a car, boat or even something that someone else is willing to pledge for them. Many parents will do this if they can't lend them the money. If they appear to be sincere buyers you should be able to negotiate enough of a deal to make it work. The old saying is true here "where there's a will there's a way".