Selling successfully on a "Lease-Option" often means giving great terms to get a better-than-market price for your home. Lease-Option tenant-buyers buy for 4 general reasons.
- Do not meet the bank's credit score requirements
- Not enough down payment to meet the bank's requirements
- Not enough time on the job (self-employed) to meet the bank's requirements
- Own too many homes and the banks won't lend for more
Needless to say, Lease-Option buyers are willing to negotiate a higher price for your home, in exchange for "forgiveness" with one of the above mentioned items. Obviously, you never want to put someone in your home that is a blatant risk of not paying or destroying your home. So the key is to do what banks used to do to qualify potential buyers:
This is true whether you are selling your home, "rent to own" or just renting it. You should look at your prospective renter-buyer's entire financial picture...not just their computer-generated credit scores.
Banks and landlords with experience will agree with the above statement, since they know that credit scores alone do not tell the whole picture. In 2008-2010, there were many folks that banks would lend money to with "good credit scores" only to have them foreclose shortly thereafter. Whoops...
And many landlords, who do not want to be landlords, often pass up on doing a Lease-Option, because they assume all tenant-buyers have bad credit and will destroy their house. So they decide to remain landlords, fix leaky toilets and roofs, continue to pull their hair out, and grow to dislike real estate more and more. Whoops...
We recommend you not take this path. If you're going to say, "No" to doing a Lease-Option, at least do so after you've fully informed yourself first, so you don't miss out.
Learn more about the Pros and Cons of selling on a Lease-Option ("Rent-to-Own") here. Allow us to custom-design an offer that will combine with your specific needs and wants. We think you'll be glad you did.
Click here to learn more now.
Russell & Diana de la Peña
P.s. If you'd like to learn how you can get your full asking price, pay no fees or commissions, and do it all in just 7 to 14 days, give us a call or click here now.We'll see you on the other side.