Here’s Why You Want To Sell Your House With A Lease Purchase

Beautiful living room in move in ready house
Lease-purchases can be a great way to make more money when selling your house

You may have heard the term "rent-to-own" before.

What you may not have heard are the terms:

"Lease-purchase" and "Lease option."

All of these terms are interchangeable. We'll use the term lease purchase for the purpose of this article.

Although they may not be the traditional way of selling your house, lease purchases are potent tools that homeowners can use.

Lease purchases provide a lot of benefits, of which many homeowners are often unaware.

Let's take a deep dive into why lease purchases are a viable and often lucrative way to sell your house.

You Will Earn More Gross Proceeds Than A Cash Sale

To help demonstrate our first point, let's consider a hypothetical house worth $200,000 that would rent for $1,250.

The homeowner wants to sell it, but also wouldn't mind renting the property for a few years.

Our hypothetical homeowner could list the property for sale on the MLS with an agent for $200,000, and will probably get an acceptable offer.

But will the homeowner make $200,000?

Not even close!

The homeowner is likely to have to pay the below-estimated costs:

Realtor Commissions at 6%: $12,000

Buyer Requested Repairs: $5,000 - $10,000

Buyer Requested Closing Costs: $5,000 - $10,000

City/County Transfer Taxes: ~1% of the sales price at $2,000

Staging: $1,000

Home Warranty: $500

Pre-inspection: $500

Deep Cleaning Cost: $300

Recording Fees: $100

All these costs add up to $36,400, for gross proceeds of $163,600.

On the other hand, let's look at the numbers for a lease purchase.

For our example, we'll say the lease-purchase term will be for 36 months.

Our hypothetical homeowner will earn gross proceeds of: