3 Reasons To Sell A House On A Lease Option

 

Today I’m pleased to have Mike Otranto join us to do a guest post. 

Mike Otranto is an active real estate investor in North Carolina and has extensive experience working with people with all forms of seller financing.  Today Mike will be discussing a few of the advantages of selling a house with a Lease Option.  For more information on what exactly a lease option is check out our last Q & A Saturday Video where we discussed what they are.

3 Reasons To Sell A House On A Lease Option

There many reasons why a home may sit on the market unsold.  Sometimes when you need to sell a house fast you need to explore other options if things don’t go as planned;  Below are some common situations where selling a home on a lease option is a great way to sell faster and for more money.

 Lease Agreement for Lease Option - MA and NH Real Estate

Little or No equity

When a home has a high mortgage balance relative to its market value it can be very difficult to sell.  As an investor, I always assume at least 10% of the gross sales price as the cost-of-sale.  These costs include agent fees, attorney fees, buyers closing costs, recording fees etc.  So, let’s say you own a home that has a fair market value of $350,000 and your mortgage balance is $335,000.  This would mean that you may have to pay up to $35,000 in closing costs.  Are you prepared to come to the closing table with a check?  By selling your home on a lease option you can have a tenant buyer in place paying your mortgage and reducing your principle balance every month.

Moving Away

Many times a job transfer, divorce, illness in the family, or loss of income can make an owner have to relocate abruptly.  Sometimes this relocation occurs to another state.  Many times this leads to a vacant house which can have serious consequences.  Increased insurance costs, having 2 house payments, theft and vandalism, landscaping and other maintenance costs can wear away at a person’s income and savings.  It is much easier to have a high quality tenant buyer in place to take care of the homes and help pay your mortgage every month. 

Too Much Repair

Often times when a property falls into disrepair it becomes unmarketable to the general public.  Buyers have difficulty seeing past the outdated kitchen, worn and stained carpeting, scuffed walls, old bathroom fixtures, etc.  If you can offer the home for sale on good terms you can get a high quality tenant in place that will upgrade the home for you. 

These are just some of the ways that a lease option can help sell your home fast.  Remember that the worst thing to do if you are in a tough situation is to do nothing.  Contact a trusted real estate company in your local area like Mass Home Sale.  Empower yourself with knowledge and then take action!

 

 

Mike Otranto has been an active real estate investor in the Raleigh N.C. area since 2005. He began with 2 – 6 unit multi-family properties in downtown Raleigh and has since moved is focus toward single family residential properties.  Always up for a challenge he shuns the long term mortgages offered by commercial banks in favor of creative financing strategies such as subject-to transactions, owner financing with purchase money mortgages, long term leases with option to buy, equity options and more. He also holds a NC Brokers License. Visit Mike’s webpage at http://MikeOtranto.com or catch Mike on YouTube.

 

 

(Image credit: Lease Agreement via rentpost.com)

 

 

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