Many home owners would like to sell or need to sell but cannot in today’s market. Maybe they cannot get what they owe, or they do not want to sell for so low or buyers have not been able to qualify. If they do not stay in the home, they usually rent. Here are a list of reasons why lease options are incredible for sellers.
- Higher sales price – Buyers for lease options do not have the options as qualified buyers therefore a higher sales price can be obtained.
- Down payment – A non refundable down payment can be negotiated into the contract that goes towards down payment.
- Rent + option payment – In addition to rent, a non refundable monthly option payment can be negotiated into the contract that goes towards down payment.
- No vacancy worry – Renters sometimes leave, lease option tenants almost never move out and create vacancy.
- No maintenance – The buyers are responsible for property maintenance per the contract.
- No agent fees – Sellers do not have to pay 6% agent fees when the purchase contract is executed.
- Keep down payment & option money – If the buyers do not execute the purchase contract, the sellers keep the non refundable down payment and option payments. They have the option to renegotiate and are in a very good bargaining position.
For more information on Lease Options, check out this helpful guide.