Rent vs Buy in New Iberia>Question Details

Warren Stans…, Real Estate Pro in Youngsville, LA

If you can't sell your home and have a expired listing want to sell yourself is a lease purchase a good way to sell?

Asked by Warren Stansbury, Youngsville, LA Wed Mar 6, 2013

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Hi Wesinvestments,

If you home is not selling via the MLS, then certainly doing a rent-to-sell/rent-to-own (lease with an option to buy) is a good way to go if you know how to qualify your tenant-buyer (TB) and ensure they want to purchase the home and are capable of purchasing the home when their time comes to exercise their option to buy.
I would not do a lease-purchase which is very different than a lease-option. With a lease-purchase, you are giving equitable interest to your TB vs. with a lease-option there is no equitable interest being conveyed to the TB. The key here is that if equitable interest is transferred to the TB, then you have to foreclose on your own home to get them out in the event they don't pay rent vs. with a lease option, you may evict them.
Check out our website for more information about rent-to-own - and we have a frequently asked questions tab that should be beneficial to you.
For your TB, you want to verify their income, debt to income ratios, how much they have to put down upfront, their job history, and their rental history. For all of our TBs we have to per-qualify them to ensure they have the ability to afford the mortgage on the home when they buy and have a good probability of qualifying for a loan at that time.
The bottom-line is that a lease option is a win-win for both you and the TB when done correctly and fairly for both parties.
0 votes Thank Flag Link Wed Mar 6, 2013
Why is your listing Expired.... Location, overpriced or needs excess repairs ??
Some states do not allow lease purchase - check for that first.
0 votes Thank Flag Link Wed Mar 6, 2013
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