The choice of exit strategy plays a pivotal role in maximizing your returns on real estate investment. Lease options present a compelling opportunity to enhance your profits rather than selling your property outright. This approach allows for a higher return on the sale, with the potential buyers having the option to purchase the property or walk away at the end of the agreement, typically lasting from one to three years. Moreover, you retain the initial option fee received upfront as a down payment.
By opting for lease options, you essentially lease out your property, similar to having tenants. However, these occupants have a vested interest in the property as they get a trial period to experience homeownership. They are willing to pay a premium for the opportunity to live as homeowners while rectifying any credit issues or saving for a down payment. With the right tenants and a well-crafted lease option agreement, investors often find this strategy beneficial and start incorporating it into their investment plans. Discover the advantages of using a lease option to sell your house in Lagrange.
Asking Price
Empower yourself by setting the sales price for the property when utilizing a lease option to sell your house in Lagrange. This price is typically set above market value, considering the projected appreciation during the contract term. While you bear the risk of potential value increases, the tenant assumes the risk of a possible decrease in property values.
Option Fee
Opting for a lease option strategy to sell your property in Lagrange implies receiving an initial option fee, usually between one to five percent of the sales price. However, it’s worth noting that option fees as high as twenty percent are not uncommon, with the fee generally being non-refundable. Considering the national median listing price for active properties is approximately $450,000 as of May 2022, a 5 percent fee would amount to $22,500. This fee would be credited towards the purchase if the tenant decides to exercise the option.
Tenants Maintain Your Property
When utilizing a lease option to sell your house in Lagrange, the tenant assumes the financial responsibilities of maintaining the property and making repairs. You, as the seller, will retain the title and remain responsible for taxes and insurance. This arrangement shifts most other obligations to the tenant, offering a convenient solution for both parties.
Above Market Rent
Maximize your rental income potential in Lagrange by utilizing a lease option strategy. By incorporating a rent premium, which is an additional sum paid on top of the standard rent, you can increase your earnings. When the buyers decide to exercise their option to purchase the property, the total amount accumulated in the rent premium throughout the contract period will be deducted from the final sales price. Should the buyers choose not to proceed with the purchase, you, as the seller, get to retain these funds.
Connect with our team of experienced real estate professionals at Flagship REI today for a no-obligation consultation regarding your property. At Flagship REI, we are committed to ensuring that you secure the most favorable deal and are satisfied with our collaboration long after the transaction is complete. We take pride in offering a thorough assessment comparing the outcomes of a traditional property listing versus the lease option approach. Additionally, we are prepared to present you with a direct cash offer to purchase your property in its current condition. Transparency is key at Flagship REI, and we will walk you through the specifics of our calculations, empowering you to make an informed choice when selling your home in Lagrange.
Discover the mutually beneficial aspects of utilizing a lease option to sell your property in Lagrange for sellers. Interested in learning more? Contact Flagship REI at 706-918-9133 today.