Selling Real Estate in Champaign Urbana in turning into a challenge. Both for home owners and Realtors alike. All of the stops are behind pulled out right now. Every advertising and marketing angles are behind utilized, however the “normal” method of selling houses isn’t very effective today. The sales volume of Real Estate in Champaign County has come to a screeching halt! If you need or want to sell your house fast, perhaps you should consider Leasing your house with the option to buy, also known as a Lease Purchase, Lease 2 Buy, or Rent to Own.
In a nutshell, the mortgage market has tanked, and even folks with good fair credit and jobs are finding it difficult to get a mortgage today. This has left a large market of buyers who earn good dollars monthly, and perhaps even have some kind of a down payment, however they can not obtain bank financing right now. You have a house that you would like to sell, they are looking for a house to buy …. how can you make this work for the both of you?
A Lease Purchase allows you as the owner of the property the opportunity to lease your home to a buyer who wants to buy it in the near future. The buyer will typically sign a lease agreement, along with a separate Option To Purchase, which specifies the agreed upon purchase price, the amount down and the term of (time limit) of the Option to Purchase.
A Lease Purchase agreement allows the seller to fill a vacant property in a stagnant market with a potential buyer, and allows the buyer to move in and “test drive” the property while they are working on fixing a credit bump, or saving for a larger down payment required by the bank. There are other forms of “Seller Financing” that you can also consider and we will discuss those alternatives in a future post.
** Disclaimer – We are not Attorneys. If seeking real estate advice, please consult with a local attorney.