Buying A Home
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Lease Purchase?
Has anyone done a lease purchase as a seller? Was it a success? A nightmare?
Our house is for sale in an area where the housing economy is especially bad. It has been on the market for a year and a half with no real interest. To make matters worse there are a ton of foreclosures in the area that are selling for 25-50K. Yeah, the price of a car gets you a house in this neck of the woods. Our house is not overpriced and is nicer than many of the surrounding houses but it is hard to compete with those kinds of crazy prices.
We have been approached with a l/p and we really don't want to do it but at the same time I am concerned we aren't going to unload this place any other way. It just seems SO risky. Blech. I don't know what to do.
"Life seems nothing more than a quick succession of busy nothings." Fanny Price
Re: Lease Purchase?
ETA: Ooops, I don't know if you are asking about buying out your potential sellers lease on their current rental, or if they are wanting to rent your house instead of buying it out right. If it's the first, then read on.. if not, then ignore. :-)
Lease buy-outs aren't that complicated. How much time does your potential buyer have left on their lease?
Look through their lease contract. There should be a place in there that lists the reletting fee (cost that the landlord incures to prepare the dwelling for a new tenant) and/or a number that must be paid for early termination.
We just purchased a home and our realtor negotiated a lease buy out with our apartment. When we went to our apartment management ourselves, they told us that we would owe 6,820 dollars if we moved out on Dec. 1 of this year. Our lease term was originally supposed to be up in July of 2012. The realtor was able to negotiate that if we provide 60 days notice (a must from most landlords) and the management can find a new tenant to take over as soon as we move out, we pay zero dollars. If they have not found a new tenant, we simply pay the 900 dollar reletting fee and then our monthly rent until they find a new tenant.
Rentals are at near capacity at all the apartment complexes in our area, so I know that they will not have a problem finding a new tenant to take over. Our realtor agrees.
Either your realtor or the realtor that the potential buyer is using should be able to help you negotiate with the landlord the best deal money wise.
Hope this helps.
I just forsee him not completing the purchase and a year from now we will STILL own the place. And in that year there could be damage done to the place that we then have to go in and repair and honestly, even with the earnest money up front and the rent money - it just doesn't add up to that much. Especially if we have to put a couple grand back into the place to repair anything he may damage.
I think we are going to turn it down. Thanks for your input.
ETA - yeah sorry I should have been more specific. It is a buyer who wants to lease with intent to purchase in 12 months. It is a recently divorced guy who just got a new job at the biggest employer in the small town our house is in. This company is notorious for layoffs and instability. I just don't see it panning out in the end. I feel for the guy but I just don't think it is a good idea for us.