Home Selling in Hickory>Question Details

Crissy71, Home Seller in Hickory, NC

is a lease purchase a good idea for sellers who need to sell quick?

Asked by Crissy71, Hickory, NC Wed Jun 15, 2011

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8
Laynie,

You need to enter your question as a totally new post and not piggyback on a post that is a year old and on a totally different subject.
0 votes Thank Flag Link Sat Jul 14, 2012
Sorry. My mistake. Thanks.
Flag Sat Jul 14, 2012
It all depends on what your situation is. It can be an excellent way to sell, it depends on what your goals are.
0 votes Thank Flag Link Thu Jun 30, 2011
This is not a good idea for a quick sale. A lease purchase is not a “sale” of your home. You would be leasing your home and granting an option to the lessee to buy it at a future date. There are LOTS of details that I have not covered and that you need to know before you entered into a lease purchase. Please get expert advice from a Realtor or an attorney before you do anything.
0 votes Thank Flag Link Wed Jun 15, 2011
Most buyers seeking a lease purchase are neither able or interested in closing quickly. So NO, it's absolutely not a good idea for a quick sale. Listing it with a Realtor® and pricing it attractively is the best idea for sellers that want to sell quick.
0 votes Thank Flag Link Wed Jun 15, 2011
Crissy - A lease/option may be a good way to start putting some money in your pocket right away or at least covering your mortgage. The advantage of the lease option is that you can open the door to buyers that curretly do not have a down payment to make a purchase or need six months to get a credit rescore.

The way I have structured the lease amount is to have it cover as much, if not all of the current mortgae due with an option amount above and beyond the lease amount that an escrow office will hold until the end of the contract. The option money is to be used as down payment money if the buyer excercises their option to buy. If the buyer does not excersie their option for purchase then the option money will be released to you the seller.

These can be complex in that you do take the risk on of a tenant and you also want to keep in mind that the buyer may not excercise the option to buy be cabable of buying at the end of the term. Make sure your option maney is enough to protect you should the buyer not go through with the purchase.

Hope that helps,

Trevor
0 votes Thank Flag Link Wed Jun 15, 2011
Crissy71, A lease / purchase can be a great avenue to pursue. However, remembering that 'knowledge is power', my first advise to you is that you speak with an attorney who can author necessary documentation for this type of transaction. NC real estate licensees cannot create such documentation, as such. This is a short answer because it points you to the beginning of your solution. Thank you.
0 votes Thank Flag Link Wed Jun 15, 2011
A lease purchase may or may not be a good option for you. If you need to sale quickly, I'd definitely talk with someone experienced in the process, as you may just be postponing some bigger issues.

In a lease purchase, you become a landlord, which has issues of its own if you're not prepared for them and especially if you're moving out of the area.
0 votes Thank Flag Link Wed Jun 15, 2011
Crissy71,

A lease purchase is an option to disposing of property during a slow market and there are plenty of potential buyers out there seeking these opportunities. So simply publicizing that you are welcoming "lease purchase" offers should generate serious interest.

As a seller considering a program of this nature it is advisable that proper precautions are taken to protect your interests by preparing the proper contract to cover your transaction and by getting enough of a deposit to protect your interests should things not work out and you need to reclaim the property.

Good luck,

Bill
0 votes Thank Flag Link Wed Jun 15, 2011
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