Home Selling in Cincinnati>Question Details

Trent Warner…, Real Estate Pro in Cincinnati, OH

When should we sell our house on a land contract or Lease option? Can you give advice to sellers?

Asked by Trent Warner Monopoly Builder, Cincinnati, OH Wed Oct 27, 2010

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When you can't sell it any other way because of a buyers ability to get financing.

A land contract is an actual sale, but the transfer of ownership by title happens after the land contract is paid off. If you have an existing mortgage on the home, that debt will stay with you until you pay it off which could affect your ability to get credit. Compared to a sale where the seller provides financing with a mortgage, the land contract makes it easier to get the property back in case the buyer defaults.

A lease option is not a sale, it is renting with the renter having the right, but not the obligation to buy the property for an agreed upon price within a certain time. If they do not buy, the seller gets to keep the option deposit.

Think through these options carefully as depending on your situation, one may work better than another. Some considerations are how much you need to sell, what existing loans are on the home and the price and terms you are selling for.
1 vote Thank Flag Link Wed Oct 27, 2010
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