Home Buying in 77373>Question Details

Dana Baker, Home Buyer in Spring, TX

Can I find and sell my home faster if I do a lease purchase agreement and if so where can I find more information to protect me legally?

Asked by Dana Baker, Spring, TX Wed Aug 8, 2012

I have decided to sell or lease the home I'm in now but I'm certain I wouldn't qualify for owning two homes. However, being a single woman there are a few maintenance/minor repairs my home will need first. I thought it might be a better idea to lease it at a reduced price in exchange for doing some of those in preparation for selling. Any suggestions on doing this? I'd like to begin looking for something else as soon as possible. It would be great if I could get moved in 3-6 months.

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A lease purchase can not legally be executed in Texas by a licensed agent. In most cases I do a lease with a first right of refusal to the tenant with a specific time line. My feeling has always been, "Why let someone try it before they buy it". It doesn;t work.
0 votes Thank Flag Link Tue Sep 25, 2012
The problem with leasing at a reduced price is the type of tenants you will get. Most tenants want move in ready. You could sell it "as is" but it would need to be priced right for the work/repairs that need to be done. I would suggest having a Realtor come and view the property to do a current market analysis of the property. A Realtor can give you an "as is" price and a price if want to make the repairs.

If you have any questions or would like to schedule a appointment, please email or call.
claudia.babb@garygreene.com or 381-367-3531
0 votes Thank Flag Link Wed Aug 8, 2012
Hello Dana, That's great that you want to make a move and right now the market is great for selling your home! A lease to purchase really means that you have a lease contract and after the lease is up your tenant has the option to purchase the home. Otherwise to write a lease to purchase contract where lease payments go toward the purchase which is tricky, you would want to hire a real estate attorney to draw up a contract. If you are wanting to purchase another and think you can't qualify to own two homes then your best option is to list your home to sell. When you get an offer the buyer will have an inspection and then the repairs can be negotiated at that time. Ideally, however, in preparation to selling your home you want to have any obvious minor repairs and maintenance done prior to putting it on the market to give you the greatest leverage and sales price.As a Certified Home Marketing Specialist, I'd like to see your home to better advise you and I have an excellent referral list of handymen to assist you. I also recommend that you speak with a lender about whether you can qualify for owning two homes or not. My firm is a full service firm where we have Gibraltor Mortgage Services on the premises making it very convenient for you to work with a "team" of professionals all in one place. Please contact me for further assistance. Thanks for your question!
0 votes Thank Flag Link Wed Aug 8, 2012
You are correct, as a landlord you wouldn't get credit for it until you had a track record for maintenance and vacancy.

As a Lease/Option, you could pull it off; the problem is, L/O is a hot potato. Buyers are being warned about taking on a bad contract, especially when their financial future is dependent: They (and you) are betting that their situation is going to be better in 2-5 years than it is now. (Think about that.)

The fastest way to sell the house now, it to have it show well and priced right. The new savy buyer needs it to be turn-key and priced at Market: The Appraisal will not allow them to buy it for much more than Market Value.

The best path for you to take is to enlist the aid of a Realtor and have them do a CMA to determine the Market Value; you can then make an educated decision.
Since you do not HAVE to sell, you may choose to hold on a while longer; who knows until you have the info.
0 votes Thank Flag Link Wed Aug 8, 2012
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