Are you looking for tips on using lease option to sell your house? The exit strategy you use to sell your house can make all the difference in earning the highest possible returns on your real estate investment. An extremely lucrative alternative to selling your house outright, lease options offer a way for you to earn a higher return on the sale. At the end of the agreement, typically one to three years, they can exercise the option to buy the home or walk away, and you keep the initial option fee that you collect upfront as a down. Much like having tenants, you’ll be renting out your property. However, these tenants have much more at stake than the average tenants, as they are, in essence, test-driving ownership of the property. These tenants are willing to pay extra for the chance at living the lifestyle of homeowners while correcting any missteps with their credit or building savings for their downpayment on the property. With the right tenants and a thoughtfully constructed lease option agreement, many investors learn to appreciate this arrangement’s benefits and begin investing with a lease option strategy in mind. So read on as we explore using a lease option to sell your house in Cincinnati or NKY.
Asking Price
Because you’re in the driver’s seat, you can set the sales price for the property now when you use the lease option to sell your house in Cincinnati or NKY. Often set above market to account for the appreciation estimated to occur over the contract term, while you take the risk there could be a sudden hike in values, the tenant takes the risk that values drop.
Option Fee
Using a lease option to sell your house in Cincinnati or NKY means that you’ll collect an initial option fee ranging from one to five percent of the sales price, though option fees of up to twenty percent are not unheard of, and the fee is typically non-refundable. With the national median listing price for active listings being around $450,000 as of May 2022, 5 percent would be $22,500, which would apply towards the purchase if the tenant exercises the option.
Tenants Maintain Your Property
While you’ll still hold the title and be responsible for the taxes and insurance, everything else will fall on the shoulders of the tenant when you’re using a lease option in selling your house in Cincinnati or NKY. So, for example, tenants typically carry the financial responsibilities of maintaining the home and even making repairs.
Above Market Rent
You’ll make above-average rental income using a lease option in selling your house in Cincinnati or NKY; the portion of rent paid at above-average rental rates is called the rent premium. The buyers would then deduct the amount paid into the rental premium over the contract term from the sales price upon exercising the option. Of course, if there is no purchase, you’ll also keep these funds.
Help Sell Your House With We Buy NKY Houses
You only need to make one stop, with the convenience of our professional hybrid agents and investors all rolled into one at We Buy NKY Houses. If you have any questions about which option is best for your situation, We Buy NKY Houses will take the time to listen. We Buy NKY Houses will address any of your concerns with no obligation. To learn more about how our hybrid agents and investors can help you solve your problems, contact We Buy NKY Houses at (859) 412-1940 today and get started.
If you have questions like : How does a lease option agreement work? How do I find a lease option agreement? What is a purchase lease option agreement? When you call, we listen. We want to find out what is causing you stress, how fast you need to sell, and how we can help you.