Owning a home is a huge responsibility and can be a very difficult challenge. Sometimes life’s circumstances dictate that it isn’t a feasible one to undertake anymore. That in and of itself can be frustrating and stressful as you deal with the need to sell, but the desire to remain. Fortunately, there may be an option that can allow you to do exactly that.
The Leaseback Option
A leaseback is when you sell your home and then pay the new owner rent so you can still live there. Not all buyers will allow this, but if you need to sell your home but still want to live there, it’s worth asking about. You may be able to negotiate that as part of the deal when selling the house.
Certain factors will impact a buyer’s willingness to participate in a leaseback option. The home’s condition is one. Generally speaking, homeowners want homes to be kept in good condition. If your home isn’t in good condition to start, the new owner may have some concerns about your ability or willingness to keep it from getting worse. The location may also have an impact. The rise or fall of property values and how easy it is to find a tenant in that location may factor into their willingness to engage in a leaseback option and how long the term of the lease is. Your visibility as a tenant, as well as the length of the leaseback you’re seeking will also factor in.
Dotting I’s and Crossing T’s
Whenever you enter into a legally binding agreement, it’s always important to make sure you completely understand the agreement before you sign it. Make sure that everything that matters to you in the agreement is in it in writing. Don’t just rely on verbal agreements. Those don’t always hold up. A signed contract, however, is much more legally binding for both parties. Include the terms of the leaseback in the sale and make sure you have a written copy in case the need for it arises.
Just because you need to sell your home doesn’t necessarily mean that you want to move. The good news is that you may be able to do a leaseback. This allows you to get out from under your mortgage but still stay in your home, at least for a time. Just make sure that you clearly understand the terms of the agreement so you know exactly what you’re signing up for before you agree to this option.
Do you have other questions about selling your home? Sierra Housing Solutions can help you find answers. Click here to see our most frequently asked questions and our answers.