Looking for lease options with your real estate property? Suppose you own a home and can wait out the term of a lease option to exit the property, typically from one to three years. Or perhaps you have a property you’ve had trouble selling. In that case, a lease option is an excellent sales method that can be pretty lucrative—combining the benefit of a flip by receiving a hefty option fee at the beginning of the contract with the benefit of long-term renters. Of course, tenant screening should always be top-notch with lease options. First, you’ll want to perform a rigorous review to bring in highly qualified tenants, staying within all local, state, and federal guidelines governing tenants. Then, with the right property and the buyers in place, you could cash in on this advantageous method of selling real estate. So read on as we discuss how lease options work for your Cincinnati house.
Sales Price
Lease options work for your Cincinnati house because buyers are willing to pay extra to enjoy the benefits of homeownership while you allow them time to make sure they like the home, repair credit, or save towards a downpayment. In addition, because you must estimate the future market value of the property, you can set the sales price above the current market value. So while you risk prices soaring far above this number, you can mitigate taking a hit down the road by cushioning the sales price now; the buyers, on the other hand, risk home values falling and owing more for the property than the market value.
Option Fee
A large influx of cash is always a nice bonus, with the fee for the option typically ranging between two and five percent of the home’s sale price; this is another way lease options work for your Cincinnati house. With the average sales price of homes reaching an all-time high of $400,000 in May of 2022, you could collect up to $20,000 for the exclusive right to buy the home by exercising the option. In addition, the option fee is typically nonrefundable.
Rent Premium
Increased monthly cash flow is another way lease options work for your Cincinnati house in the higher rental rates you can charge, with a portion of the rent payment to apply towards the down. The rental premium amount must be above the market average for many lenders to consider it for the downpayment, so be sure to check with mortgage lenders about the terms.
Eliminate Holding Costs
Essentially, lease options work for your Cincinnati house by delaying the sale while your tenant covers your mortgage payments and utility costs that you would have paid monthly to hold the property. In addition, depending on the agreement, the tenants are also responsible for maintaining and repairing the property as if it were their own home. However, some contracts have shared responsibility for more significant repairs exceeding a specific amount, such as $500.
Help In Selling Your Real Estate Property
If you’re looking to sell your house, Team Sztanyo can help you sell your house for the highest price, making it effortless for you on your terms. If you don’t want to work with an agent and need to sell your house fast for cash, we can help with that too. We buy houses in Cincinnati and Northern Kentucky for cash – properties in ANY condition and can close quickly. We work with hundreds of local investors to who will rehab the property and hold as a rental or sell to another buyer. So, whether you want to list on the MLS for the most money or sell your house FAST, we can help.
Choose what’s best for you! The professional hybrid agent investors at We Buy NKY Houses can offer you BOTH options. At We Buy NKY Houses, we will run the numbers and go through everything in detail. Our goal at We Buy NKY Houses is to inform you of every step of the process with complete transparency. We Buy NKY Houses our job is to make sure you feel confident in your decision when selling your house in Cincinnati.
If you have questions like: Is a lease option a good idea? How do lease options make money? Then reach out to us! Then give us a call! We take the time to listen to your concerns and answer any of your questions here at We Buy NKY Houses, with no obligation. Contact We Buy NKY Houses at (859) 412-1940 today!