To be honest, I have never worked a deal like this, but this is my understanding of how it works. There may be other variations or opinions, and definately more details to learn, but I do hope this helps.
I agree with the general opinion of the other posts. Unless you are able to get a decent downpayment and do owner financing, you are setting yourself up for a lot of problems.
Have you sold your home yet? If not, I would appreciate an opportunity to assist you.
Please give me a call and tell me about your property. If you don't feel you can afford to list it, I'd at least like to come see it in case I get a buyer for a one-time-showing agreement.
This scenario is a win-win for everyone
You might want to look at the Trulia information below.
There are a couple of truths in home selling that you should know.
1. Homes always sell at the right price. The problem is that many people insist on listing their home at
"their price" in order to get the most. Which always fails. The price to list a home is a price that will cause it to sell. That price is not based on how much you owe, how much need to net, or what you paid.
2. Homes that sell in the first 30 days will sell closest to asking price. In my market homes that sell at 120 Days On Market (DOM) are selling at 92.7% of asking price. Homes that sell within 30 days are selling at 99.7% of asking.
3. Only about 20% of homes, on average, sell within 30 DOM. So that means that the rest of the inventory makes up the 80% and much greater DOM, and the sell for less.
So to sell your home for the most money:
1. Preparation - clean, declutter, paint, stage, photos
2. Proper professional photos, marketing
3. Price it right
Expect 10-12 showings or one offer in the first two weeks, otherwise lower the price about 5%.
If you are unable to price realistically, then don't waste everyone's time and effort trying. Rent it out, check with a CPA on the tax implication, don't worry about a lease option, it rarely works, and it does not matter. We became accidental landlords and in the long run it was great, we made a lot of money.
Sellers are anxious to move on, yet are still in their same home, perhaps they have completed their newly constructed home, or have transferred, and now are having 2 notes! What to do? Well we as realtors like to offer options, so here's what we do:
#1 Attempt to sell it.. (for obvious reasons that's the ultimate goal)
#2 Lease the home at XXX amount of dollars.. at least you'll be able to offset until the market fairs better.
#3 Lease Option to Purchase (sounds better than RENT TO OWN) With a lease option, you are allowing potential buyers to come in pay XXX amount of dollars with a portion of the monthly note example = 200 towards closing costs or just reduced from the asking price.
The best way to see this through is to get the buyers locked / invested into the home, and what we recomend is that the potential buyer would place a 3k - 5k NON - REFUNDABLE DEPOSIT prior to moving in, also we prepare a ACTUAL PURCHASE AGREEMENT signed by both parties. Afterall you are selling you home correct? And your just allowing this party to purchase the home 1 year from now. This keeps the party invested in the home during this 12 month process, and prayerfully they will go to close at the end of that contract agreement. We do not recomend you go beyond 1 year. And we do not recomend you lower the price, we recomend for Lease Option to be for FULL LIST. Afterall you are the one still paying the insurance on the home and it's still in your name, so you are responsible, your just being the good guy / gal and allowing them to clear up some issues, and get ready to get their financing in order.
Best of Luck to you.
John and Linda Cramer
Prudential Nichols Real Estate
Currently we have a situation like that. Our sellers have a home for sale and there new home is ready for them to move in. So we now offer 3 options to buyers. #1 Buy the home. #2 Lease the home with an option to buy. #3 Lease under our Prudential Rental Program.
So the issue is for you you have a home, you need to sell it quickly. Time is a factor, well we would suggest that you get a good Real Estate Consultant that can help you through the process. We know the ins and outs, and what it takes to get your home prepared for sale, lease or otherwise. So give us a call @ 251-599-5799 and we'll share with you ways to assist you in this process, so you can ... Smile and Start Packing!