Selling Your House with a Lease Option

It’s a buyer’s market, and selling your home can be tough. For one reason or another, many buyers aren’t quite ready to make the leap into purchasing a home. That’s why so many sellers today are renting their homes to individuals who then have the option to buy the home when their lease is up. Selling your home with a lease option is a great way to ease the buyer in and earn a little extra cash in the process.

Here are some tips that can help you navigate the process of selling your home with a lease option:

1) Make sure it’s right for you. While lease options can be beneficial to some, they are not for everyone. Remember that the person who is leasing your home is not required to purchase it once the lease is up, so you may need to start the process over again when it is. You’ll also want to make sure that you’ll be able to keep up with making repairs to the home while it’s being leased, as that will still be your responsibility. If you need the money from your home sale right away, then a straight sale might be a better option.

2) Do a background check. Because you will be responsible for the condition of the house while it’s being leased, make sure you pick the perfect tenants who will make your job as landlord as easy as possible. Find someone with a steady monthly income and good references from past landlords or employers. You can also feel free to have your tenant pre-qualified for a mortgage. Remember that the ultimate goal is to have the tenant buy your home, so it doesn’t hurt to see where they stand right away.

3) Make the contract. Before you get started on the contract, you’ll want to write up a disclosure form for your tenant that will describe any problems with the home that you know of before the tenant moves in. The contract that you and the tenant will sign can be best attained from your local attorney or real estate agent. The contract should include the purchase price of the home, the amount of option money you will collect (typically 2-4 percent of the purchase price), how much of the tenant’s monthly payment is going to be credited toward the option and how long the lease term will be.

4) Get the right insurance. Make a call to your insurance agent so that you can update your policy whenever needed. You may need a dwelling policy now that you won’t be the owner and occupant of your home, and you should also make sure that your tenant has the appropriate renter’s insurance.

5) Sell your home. The ultimate goal is to sell your home to your lessee. Before or at the end of the lease term, your tenant may decide to exercise the leasing option that was agreed upon in your contract. Any option money paid toward the house will go toward the home’s down payment. This can be anywhere between 0-100 percent of the monthly payment, depending on what you stated in your contract. In many cases, the tenant will find that subtracting this amount from the total needed will decrease the overall cost of the down payment and make it easier for him or her to get a loan for the house.

While the real estate market in Chester County is certainly picking up steam, there are still many home sellers who are turning to lease options to ultimately get deals done. If you’re considering this option, work with an experienced real estate agent to make sure you have all of your bases covered. 

Chester County: Attractive to Homebuyers

Located in beautiful southeast Pennsylvania, Chester County is home to many communities that make up the Main Line western Philadelphia suburbs. Rich in history and character, Chester County is known for its friendly neighbors and exciting attractions. This makes it a great place for people looking to buy real estate.

Education: Chester County puts a large emphasis on education, and in doing so offers several public, charter and independent schools for pre-school, elementary school, middle school and high school. The county is also home to a well-established library system and seven colleges and universities. Whether you’re looking for a highly rated school system for your children or a top-quality college education for yourself, Chester County has everything you need to succeed.

French Creek State Park 

Indoor & outdoor recreation: Work out at the Y or go for a horseback ride at Spring Creek farm. No matter what you like to do for fun, Chester County will keep you busy. It’s also home to several state and county parks, including White Clay Creek Preserve and French Creek State Park. Enjoy fishing, hiking and biking outdoors, or have indoor fun bowling or seeing a movie.

Dining: From Lasorda’s Restaurant and Pizzeria to Jashimalyan Exotic Indian Cuisine, you’ll find the full spectrum of foods from around the world. For fun with the kids, check out Maggie Moo’s ice cream. Looking for a drink? The Whip and Beaver Creek are just two of the most popular taverns in the area.

Shopping: To give you what you need when you need it, Chester County has a huge array of shopping centers and stores. Visit the Wine and Beer Emporium, or stop at Plato’s Closet for some clothes shopping. Enjoy a Sam’s Club membership or check off items on your grocery list at any of the many stores Chester County has to offer. For convenience and class, this is the place to shop.

Festivals: Chester County is home to some of the best festivals in the country. From the West Chester annual May Festival to the Turks Head Music Festival, there’s always something to enjoy. In June, you can have a good time at the Brandywine Hospital Strawberry Festival, which offers games, rides, music and more. Enjoy fine dining at the Chester County Restaurant Festival, in which over 60 of the county’s best restaurants show their stuff by offering up food, beer and wine, together with some great live musical acts. With its wide array of festivals, Chester County has something going on all summer long.

Chester County truly exemplifies the best of what suburban Philadelphia has to offer. If you happen to be in the market for a home, it’s wonderful area to check out.

Top Five Reasons to Hire a Real Estate Agent

With the way online marketing is rapidly evolving, some home sellers wonder if hiring a real estate professional is really worth it. While the Internet can be helpful, there are several important services that real estate agents can offer that websites simply cannot. These include the following:

1) Real-world experience: Because they have the education and experience necessary to market your home, real estate agents handle the details and give you more time to concentrate on other aspects of selling your home. Preparing a home for sale is no simple task. Not only do you need to think about advertising, but you also need to be concerned with getting it ready for showings, which can take a great deal of time. Real estate agents have the skills to market your home effectively and take some of the weight off of your shoulders.

2) Buyer and neighborhood knowledge: Your real estate agent knows exactly who will want to buy your home and how to market your neighborhood to them. You will receive quite a few inquiries about your house over the duration of its time on the market, and it’s your real estate agent’s job to act as a buffer so that only serious potential buyers get a chance to look at it. Your agent will look up information on local schools, crime, attractions and other features, and bring them to the buyer’s attention in order to get you the highest price possible for your home.

3) Guidance on price: As the seller, you are responsible for choosing how much money you’d like to get for your home. However, real estate agents have up-to-date knowledge of marketing and real estate trends that will be helpful when selecting the proper price. Consulting with a real estate agent will help you determine the appropriate amount you can expect to get from your home based on current trends.

4) Networking and negotiating: Real estate agents know who’s who in the business, and can help you connect with professionals in other field. Agents are also great at negotiating with potential buyers because of their previous experience and their lack of emotional connection with the home.

5) Closing questions and paperwork: You’ll get plenty of paperwork to fill out in the process of selling your home, and your real estate agent will know just what to do with it so that you don’t need to stress out. Once you’ve found a buyer and are ready to close, your agent will also answer any questions regarding the closing that you might have.

Simply put, buying or selling a home, whether in Chester County or elsewhere, can be a complicated process. However, by working with a qualified, professional real estate agent, you can ensure that the process goes as smoothly as possible.