Using A Lease Option To Sell Your House in Omaha, Nebraska
Thinking about selling your Omaha, Nebraska house fast? Consider a lease option to sell your house in Omaha, Nebraska! Learn more in our latest post!
Lease options can be a better selling strategy than most people realize. It is a great alternative help you get the best price overall while providing you with extra income until the house has officially sold.
A lease option (more formally Lease With the Option to Purchase) is a type of contract used in residential real estate. It can also be used in commercial real estate. In a lease-option, a property owner and tenant agree that, at the end of a specified rental period for a given property, the renter has the option of purchasing the property. A lease option is different from a lease purchase contract, in that a lease purchase binds both parties to the sale, whereas in a lease-option the buyer has the option but the seller does not. Below we will answer some of the most common questions we see about how to use a lease option to sell your house in Omaha, Nebraska.
What Is A Lease Option?
A lease option will allow a potential buyer to lease the property for a specific term, with the option to buy at the end. The lease will typically last 1-3 years and if they are not able to purchase it at that point, the property will remain in your name and everyone can move on. During the lease term, the tenant will pay you a “rent” that is typically higher than average. Some agreements are arranged so some of this money goes toward the down payment if they opt to buy. However, whether they choose to buy or not, the amount you have collected during the rental term is yours to keep. So either way, you will come out ahead.
How To Set It Up
It is important to set the right terms from the very beginning. You want to make sure both parties have a clear understanding of their responsibilities and the timeframe in which the agreement covers. In most cases, you will set up a traditional rental agreement, with an option to buy at the end. There are a few key differences with a rent to own agreement as compared to a standard lease. First off, the tenant will likely be responsible for the repairs to the property. This will equate to even more cash that will stay in your pocket during the duration of the lease. You will also need to decide how funds will be allocated. While the rental payments are typically higher than average each month, you will need to decide where that money goes. Will you set aside a percentage to go toward the tenant’s future downpayment? Or will the rent payments become pure profit for you? Some agreements will also require a down payment or deposit of sorts to ensure good faith by the tenant.
A Whole New Market Of Buyers
Using a lease option will open your home up to a whole new market of buyers. There are tons of people out there who are ready to buy but are not quite able to get the financing they need. They are good people, who may have a blemish on their credit report from years ago. Or maybe they have been hit with an unexpected debt, keeping their loan from going through. By leasing your property with the option to buy, they will be able to get their credit and finances in order, buying your property outright when the time comes. This opens the door to a whole new group of buyers who may be interested in your home.
What’s The Risk?
There really isn’t one. Worst case scenario, they don’t buy end up buying your Omaha, Nebraska house at the end of the lease. You will have made some good money, and the property will still be yours and you can decide your next plan of action. You can opt to list it on the multiple listing service with a whole new pool of potential buyers, you can rent it out in the traditional way, or you can take on another prospective rent to own tenant. No matter what, you will still come out ahead.
There is another option you may want to consider if you would like to sell your house fast in Lincoln, Nebraska. A local home buyer like Harter Investments can give you a fair all-cash offer and buy your house fast for cash and close on your terms in Omaha, Nebraska. We also buy houses in Council Bluffs, Iowa, Lincoln, Nebraska and the surrounding areas. When selling your house through a local home buyer in Omaha, Nebraska there is no real estate commission to pay, no closing costs, no additional expenses to make repairs to get your house ready to list on the multiple listing service. There are also no holding costs involved that you would have while your house is for sale and listed on the MLS. The holding costs that you would not have would be utilities, insurance, taxes, routine maintenance like mowing the lawn etc.