Selling Your Home through Lease Purchase – 8 Bonuses You Should Know About!
Lease Purchase, also known as Rent-to-Own or Lease Option, can have several potential benefits for both Sellers and Buyers. Here are some advantages of this approach:
- Access to a Larger Pool of Buyers: A lease-purchase agreement enables a property to appeal to buyers whose credit may not presently meet the standards typically expected by lenders in a conventional sale. By widening the range of individuals who can consider acquiring the home, a lease-purchase arrangement has the power to accelerate the time from initial listing to closing by exposing the property to a larger pool of prospects.
- Higher Selling Price: Burson Home Advisors offers a full-price offer to Sellers of move-in-ready homes, and Buyers in a Lease Purchase typically agree to a higher purchase price because they are securing the option to buy the property within 12 months. This means more money in your (the Seller’s) bank account.
- Steady Rental Income: As the Seller, you receive rental income from the Tenant-Buyer during the lease period. This provides consistent cash flow while allowing the Buyer time to secure financing or improve their credit. We take exhaustive measures to help our Tenant-Buyers become mortgage-ready so they can purchase within 12 months. In fact, most are ready in 8-10 months.
- Reduced Holding Costs: Lease Purchases may help mitigate the costs associated with holding a property on the market for an extended period. While the Tenant-Buyer is leasing your property, they are responsible for maintenance and generally treat the property as if it were already their own, which saves you monthly expenditures. Also, Tenant-Buyers obtain a home warranty for your home, underscoring their commitment to repairs and maintenance.
- Highly Vetted Tenant-Buyers: Burson Home Advisors screens through the Tenant-Buyers for your home by checking credit, background, Megan’s law, and vetting them for mortgage readiness through trusted Licensed Mortgage Lenders. The Contract the Tenant-Buyers sign, along with the substantial non-refundable Lease Purchase Option Deposit, ensures they are vested in ultimately purchasing your home and caring for it as though it were already their own.
- Less Risk of Market Fluctuations: By securing a Tenant-Buyer early on, Sellers are less exposed to market fluctuations. The agreed-upon purchase price is fixed, providing protection against potential decreases in property values.
- Motivated Tenants: Tenant-Buyers in a Lease Purchase arrangement have a vested interest in the property, leading to better care and maintenance compared to regular tenants. As prospective homeowners, these resident-buyers are highly motivated to conduct timely maintenance and repairs so as to preserve the value of their investment. This shared ownership structure tends to result in a well-maintained property throughout the lease duration.
- Potential Tax Benefits: Sellers may benefit from potential tax advantages depending on the details of their home sale transaction. Capital gains realized from the sale of a primary residence are often eligible to be deferred, allowing sellers to postpone paying capital gains taxes. However, the rules governing capital gains tax treatment can vary significantly based on factors like ownership period length and the time between home purchases. As every situation is unique, it is prudent for sellers to seek the counsel of a qualified tax professional. Read also Lease Purchase Agreement: Benefits for Buyers and Owners.
Over the past several years, we have successfully helped hundreds of families with Lease Purchases, and we close with a Real Estate Attorney who has significant experience in closing Lease Purchase transactions.
Learn how we prioritize families in every step of the real estate process, ensuring smooth Lease Purchase transactions—let’s make your dream home a reality.
If you are considering a lease purchase for the sale of your home, we would welcome the opportunity to discuss the details with you in order to determine if this full-price sale offer would be a good fit for your individual circumstances and needs. To learn if this Lease Purchase Agreement may work for you, contact us so we can explore your particular situation.
