By now we have all heard how great the real estate market is for sellers. Many sellers would love to take advantage of the current market but are worried that they would not have anywhere to go. However there are options that would allow a seller to sell while remaining in their current home.
1. A Sale Lease-Back
If you are thinking of selling because you want to take advantage of the seller’s market, but don’t know where you would go after the sale, you can sell your home and lease it back for a predetermined amount of time– typically a 12 month lease with the option to renew.
This option gives you the flexibility of cashing in on your home’s equity without having to rush out of your current home. This option is great for people that would like to consolidate bills such as student loans, help their children purchase homes of their own, or simply have cash in hand and not in their homes. With this option, the homeowner would typically receive 75-85% of the home’s value.
2. Sell to Buy
Perhaps you’re ready to sell and you know exactly where you want to be but because you have a current mortgage and don’t have a large down payment, it becomes difficult to buy in this very competitive market. Welcome to the sell to buy option. With the sell to buy option, you would sell your current home for a percentage of the value which is normally about 85%. You would then pay off your current mortgage, receive the remaining equity, and now become a strong buyer, with cash in hand, and no mortgage holding you back. This gives you the ability to take your time and find your perfect next home while not having to move from your current home. You would enter into a 12 month lease with the option to leave as soon as you find your new home.
3. Lease in Perpetuity
If you know that you never want to leave your home but would love to have the equity out of property this is the option for you. A lease in perpetuity would allow you to sell the home and lease it back every 24 months forever. Technically you would become a tenant in your own home. With this option, you would receive anywhere between 85%- 90% of the home’s value and you would never have to move. The great thing about this option is that you have the proceeds to live comfortably during your golden years without worrying about maintaining a home as a homeowner since you are a tenant.
These three options allow you to take advantage of this unprecedented sellers market while not having to worry about where you are going to live as soon as you close. We at DV Real Estate Group can help you move onto the next stage of your life.