Sellers frequently ask these questions about selling on lease-option:
Q: Why should I sell my house to you on
a lease option?
A: When you lease-option your house to us,
you will realize a number of benefits:
1. Avoid the risk of double mortgage payments: When you move out, we assume responsibility for your mortgage payments. So, in the event that you have to move into your new home before you find a buyer for your old home, you are not faced with a double mortgage obligation.
2. We stand behind the transaction: We will pay for all maintenance, repairs, taxes and insurance, while we sell your house to our tenant/buyer.
3. We obtain and screen the buyer candidates: We handle the marketing, advertising, and showing of the house and screen applicants for people who genuinely want to buy, not just rent a house. These are worthy people who just need time to qualify for a loan or raise a down payment.
4. Relief from headaches: We will make the process of selling your home go smoothly. You will avoid the disappointment of long Realtor listings and escrows that fall out. In short, we simplify the process of selling your home by handling all the details and saving you time and money.
5. Tax benefits for you: Consult your CPA. Ask about tax benefits that are available for landlords.
6. You retain ownership: If anything should go wrong, you can evict.
7. Help in qualifying: If you are qualifying for new financing on another house, you can use the lease option agreement to show that you have an additional source of income.
Q: Why should I sell my
home by lease option, rather than list it with a Realtor?
A: There are several reasons:
1. We will make your mortgage payment while our tenant/buyer qualifies for a loan. We will pay all your expenses. No listing Realtor will do this.
2. You don't pay a commission. We don't work for commissions. Realtors have very little at stake in their listings and assume very little risk. We are taking risks. We have a vested interest in the house and are highly motivated to ensure that it gets sold.
3. Not only do you not pay a commission, you do not have to face the inevitable price-drop your Realtor will want if the listing doesn't sell quickly.
4. Realtors do not assume responsibility for your property in the event they do not make a sale. We do. Since we assume this responsibility and since we only make a profit by selling for more than we buy, we are highly motivated to ensure that a high quality tenant/buyer takes care of the home and eventually secures the financing that will cash you out.
Q: How long will it take
for me to get cashed out?
A: For as long as it takes our
tenant/buyer to qualify for a loan. This depends on the credit history of the
tenant/buyer and his/her ability to
come up with a down payment. This varies. It can take as little as 6 months or
as long as 2 years. But in the meantime we will continue to pay all the expenses related to the home. In
any case it is obviously in our interest to work aggressively with our funding sources
to
get our tenant/buyer qualified and funded as soon as possible.
Q: What if your
tenant/buyer doesn't buy the house?
A: The unexpected can happen, such as a job
transfer or a divorce, that makes it necessary for the tenant/buyer to move. In
that event, we will continue to pay all the expenses for the house, while
we find a qualified replacement tenant/buyer to put into the home.
Q: Why don't I just sell the house myself?
A: That is always an
option that is available to you. The difference would be that you are
responsible for your monthly payment, your taxes, insurance, and any maintenance
or repairs that the house needs while you are trying to sell it. You then have
to try to find someone who can actually qualify for financing, wait for them to
get approved, and hope that they don't pull out of the deal, making you start
the whole process over again.
Q: Why don't I just find my own
tenant/buyer to put in the house?
A: If you have the expertise to screen
potential tenant/buyers, check references, know what sort of credit scores will
allow someone to be able to be financed, deal with maintaining your home while
someone else lives in it, work with mortgage brokers to get them financed, and
finally set up a closing, then finding a tenant/buyer on your own would be a
viable option for you. If you lack the expertise in any of these areas, we are
able to help.
Q: What are the risks to sellers
associated with lease options?
A: There are some and they can be avoided. Look at our information on the PACTrust/Equity Holding Trust in our background reports for sellers. You must make your own assessment relative to potential "due on sale" and eviction problems. Lease options are very widely and successfully used. However, the PACTrust does offer you, the seller, additional protection at some small additional cost.
Palm Springs Desert Area Homes, Condos & Real Estate are to be found in the Coachella Valley cities of Palm Springs, Palm Desert, Cathedral City, Rancho Mirage, Indian Wells, Bermuda Dunes, La Quinta, Desert Hot Springs, Thousand Palms and Indio. These are the cities that form the Greater Palm Springs Desert Area and are home to some of the finest living and the best resort real estate in the world. If you want to sell or buy homes, condos, or real estate anywhere in the Coachella Valley, this site will provide the little known information you need and the solutions you seek.