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Is A Leaseback Right For You?

Is A Leaseback Right For You?

You might be asking "what's a leaseback?". Simply put, it's when the seller begins renting the recently sold home back from the buyer for a predetermined amount of time. 

 

Usually, the buyer and seller negotiate a leaseback when the buyer submits an offer on a home. Still, there are times when, due to circumstances that arise in the middle of a transaction, a leaseback saves the deal from falling apart. Often, sellers will list their home during a peak selling time, knowing they need to rent back for a couple of weeks to months- say to time a job relocation or school calendars. When this happens, the seller will include leaseback language on the property's MLS listing. Another plus for sellers that may be paying a high-interest rate on their home, a leaseback could save them money when comparing the old payment to the new rental price. Leaseback options offer sellers the opportunity to ease the pressure and uncertainty of selling.

 

But sellers aren't the only ones benefitting from a leaseback situation. Once the home closes, the buyer becomes the landlord and can take advantage of the significant tax write-offs of owning a rental property. For many buyers, a home hits the market that's too good to pass up. Leasebacks allow buyers to purchase their dream home while giving them time to provide notice to their landlord or sell the home they are currently living in. When interest rates are at rock bottom, and a home checks all the boxes, negotiating a leaseback option can be a win-win situation for both buyer and seller.

 

Are you wondering if a leaseback is right for you? Speak to one of our agents today. We will discuss your needs, timeline, and options so you can make an informed decision.

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