Sell your house in Detroit – Your home sale exit strategy will determine whether you get the best possible returns on your real estate investment. Lease options are a very profitable alternative to selling your home outright and give you a way to maximize your income on the sale. They have up to three years to exercise the option to purchase the property at the end of the contract; if they choose to walk away, you keep the upfront option fee that you received as a down payment.
You’ll be renting out your property, just like when you have renters. However, because they are essentially testing out ownership of the property, these renters have a lot more at stake than the usual tenant. These renters are prepared to pay more for the opportunity to enjoy the lifestyle of homeowners while repairing any credit issues or saving money for the down payment on a home. With the right tenants and a thoughtfully constructed lease option agreement, many investors learn to appreciate this arrangement’s benefits and begin investing with a lease option strategy in mind. So read on as we explore using a lease option to sell your house in Detroit.
When you use a lease option to sell your house in Detroit, you are in control and can determine the sales price for the property right away. While you assume the risk of a sudden increase in value, the renter takes the risk of a decline in value because rent is sometimes set above market to account for the gain projected to occur throughout the contract duration.
Your initial option cost, which is normally non-refundable and ranges from one to five percent of the sales price, will be paid if you use a lease option to sell your house in Detroit. However, option fees as high as twenty percent have been known to occur. In May 2022, the national median listing price for active properties was approximately $450,000; 5%, or $22,500, would be applied to the purchase price if the tenant exercised the option.
Tenants Maintain Your Property
When you use a lease option to sell your house in Detroit, you’ll still keep the title and be in charge of the taxes and insurance, but the tenant will be in charge of everything else. Tenants, for instance, are often responsible for paying for home maintenance and even repairs.
Above Market Rent
With a lease option to sell your house in Detroit, you’ll earn above-average rental income; the portion of rent paid at higher-than-average rental rates is known as the rent premium. Upon exercising the option, the buyers would remove the sum paid into the rental premium during the course of the contract from the sales price. Of course, you’ll also keep these dollars if no purchase is made.
Without any commitment, speak with one of our knowledgeable, experienced professional home buyers at [business] today about your property. We at [business] want you to feel confident about working with us long after the closing by knowing you got the greatest price. Because of this, [business] will compare the financial results of a conventional listing with the lease option technique and may even make you a cash offer to buy your property outright in its current condition. At Fast Home Buyers Metro Detroit, we’re fully transparent, providing the detail of how each number in our calculations so you can make an educated decision about what works best to sell your Detroit house.
Ready to learn more about the win-win advantages for sellers of using a lease option to sell your house in Detroit? Call Fast Home Buyers Metro Detroit at (248) 487-1877.