If you are a home owner with a property for sale, lease to own may be one of your best options. The economy has changed drastically in the last few years. Unemployment has reached record highs. Interest rates are down, but that’s not a factor since most homeowners are upside down on their mortgages anyway,compliments of the housing bust. Buyers in general are having a more difficult time securing a traditional mortgage for varies reasons.
The average home price in some areas are down twenty-five to fifty percent. Home prices are down not for lack of buyers, but lack of qualified buyers.
Foreclosure and short sales has driven home values down also. Homes are appraised by comparing the average sales price of homes in a specific area that are similar in size, condition, etc.It is so many homes in foreclosure, and individuals forced to sell their properties its many finding a buyer impossible. The banks have a surplus of foreclosed homes in every community in the country, and their asking price is much cheaper. A regular homeowner can’t compete. This leaves the homeowner with a property that he can’t sell, and if he does he gets a fraction of its true value. This is when lease to own becomes an option.
Most lease to own companies look for two types of buyers. Buyers that are relocating tend to be great candidates for lease contracts. Relocating buyers are looking to quickly move in and start a new job while their old house is being sold. Most do not have credit issues, but there debt to income disqualifies them for a mortgage. The second kind of buyers are high income clients with some past credit problems.
The advantages for a homeowner willing to lease to own are many. You get your asking price and a nice down payment which you keep, if the buyer exercises his option to buy,or not. Another plus, most lease to own companies will help buyers improve their credit scores. If buyers are serious about being financed, their credit scores are usually repaired by the end of the lease period. The lease period usually lasts no more than two years. No commissions or closing costs for the seller is another great incentive. Closing costs run in the thousands. Commissions for realtors are about five percent of the sale price of the home. These two factors alone save the homeowner usually $10,000 or more.
National online lease to own companies are ideal for sellers and buyers who are considering lease contracts as an option. Seventy to eighty percent of all home buyers look at homes online before they even visit a home, reported by a consumer research agency.
In concluding, lease to own is a great option for homeowners selling their property, and buyers looking to close quickly. All programs are not for everyone so find the best program that fills your particular needs. It should be easy with the vast number of companies providing services in this niche. Hope you found this helpful. Good luck!
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