Selling Your House with a Leaseback Agreement: Pros and Cons
Selling your house with a leaseback agreement can be a great option for some people. When you sell your house with a leaseback agreement, you’re essentially selling it to the tenant who will continue to live in it as they do now. You will receive a certain amount of money up front, followed by rent payments every month. This can help you pay off your mortgage faster and also get extra cash in your pocket. Here are pros and cons of selling your house with a leaseback agreement.
Pros of Selling Your House with a Leaseback Agreement
- The tenant will pay rent to you.
The tenant will pay you money every month and in return, they’ll continue to live in your house. This can be helpful if you have a large amount of equity built up in your home but also miss being able to move out of your home. For example, let’s say you live in a $200,000 home and are about to retire. https://www.myhousesellsfast.org/ works with a network of real estate professionals who can help you sell your house quickly.
- You can stay in the house until you sell it.
You can stay in the house for as long as you would like to. When you sell your house, the buyer will have to give 24 months notice before they move in. This is important for some people, because it allows them to make plans on where they’re going to live. They can look at apartments and houses online, instead of just putting the house up for sale.
- You get a large sum of money up front.
This can be helpful because you don’t have to worry about paying your mortgage after you sell your house. Of course, if you still need to pay for the mortgage, you can do that. However, if you’re going to keep the house, it can help offset a large monthly payment.
Cons of Selling Your House with a Leaseback Agreement
- You may have to move out of your house quickly.
You may have to move out of your house quickly if you sell it with a leaseback agreement. If you’re selling your house for less than what it’s worth, the tenant will probably have to let you go quickly. You can still move out and just need to find a new place to live. However, what happens if the market drops? The tenant will probably not be able to hold on to the property for very long and the money from selling your house may not be what you thought it would be.