Lease options offer would-be buyers a specified amount of time to qualify for a conventional mortgage before they purchase a property while enjoying all of the perks of homeownership.
The benefits of the rent-to-own arrangement far outweigh the risks for savvy sellers. So, read on as we explore using a lease option to sell your house in Galveston.
Option Fee and Rent Premiums
The option fee is what gives the tenant the exclusive right to purchase the property at the end of the lease agreement. The rent premium is an additional amount of money that the tenant pays on top of their regular monthly rent payments. This extra payment goes towards the option fee, and if they choose to exercise their option to purchase the home, it will be applied to the down payment.
If your tenants decide not to exercise their option to purchase the home at the end of the agreement, you’ll still have profited from the option fee and rental premium you keep. This makes lease options a low-risk investment for landlords looking to sell their house in Galveston.
When using a lease option to sell your house in Galveston, you’ll save all the holding costs for your investment property while the property continues to appreciate and build wealth. And if the tenants leave, you’ll have had everything but your taxes and insurance covered during the lease term while the property increased in appreciation and built wealth.
If you’re considering selling your home in Galveston, you may want to consider a lease option. With a lease option, you’ll be able to sell your home to buyers who may not otherwise be able to purchase it outright. This can be a great way to get top dollar for your home while also giving buyers the opportunity to rent to own.
There are many reasons why buyers may be interested in a lease option. Some buyers may need time to improve their credit score or save up for a down payment. Others may simply want to test drive the property before making a long-term commitment. Whatever the reason, lease options are in high demand, and you can realize significant returns by offering one on your property.
If you’re interested in selling your home using a lease option, contact a real estate agent today. They can help you navigate the process and ensure that you get the best possible price for your home.
You should ensure the option and the lease remain as separate contracts. For sellers, there is very little management of the property itself involved when you’re using a lease option to sell your house in Galveston. However, your tenant screening system could make or break the deal. Working with seasoned real estate investors like the professional home buyers at Phil Buys Homes Cash and their property management team means you’ll have the best tenants.
You should be upfront with your lender about using a lease option to sell your house in Galveston to ensure there are no conflicts with your mortgage’s due–on–sale clause. In addition, acquire a home warranty that covers significant repair work or requires the tenants to pay for one to protect your investment. Typically in these agreements, the tenants are responsible for repairs up to a certain amount. Additionally, as a real estate investor with residential rentals, you must remain on top of the laws governing your properties and any changes in those laws, along with an intricate knowledge of the Galveston market, future city zoning, and economic planning to keep your portfolio as healthy as possible. Finally, it’s advisable to team up with an active local professional investor like the professional home buyers at Phil Buys Homes Cash , keeping you ahead of the game so you can adjust your investment strategies and keep your portfolio healthy.
Ready to sell your house in Galveston? Phil Buys Homes Cash is ready to buy, giving you your asking price via rent-to-own. Why wait? Our contract terms are simple, and we believe in total transparency; if you have questions about the process, we’ll answer in full detail with no obligation. At Phil Buys Homes Cash , we’re your neighbors here in Galveston; we’re proud of the work we do every day to help our neighbors and improve our community. At Phil Buys Homes Cash , our professional investors will make a deal you’ll feel good about long after you’ve left the closing table. Call Phil Buys Homes Cash at (210) 239-8720.