The slow real estate market has increased the number of homes for sale in Logan UT that are offering lease options. Right now there are 22 lease option homes for sale in Logan. A couple years ago, I assisted some sellers with a lease option. At that time there were only three other homes being offered as lease options. Click this link if you would like to view the current Lease Option Homes for Sale in Logan Utah.
With a “Lease Option”, or “Rent to Own home,” sellers rent their home out giving the renter the option to buy the home at a future date. Lease option contracts usually require a substantial down payment. The down payment will be subtracted from the purchase price in the event that the renter buys the house. Lease options also generally have a portion of the rent that goes towards the option as well.
There are too many homes for sale. Cache Valley has record high numbers of real estate listings right now. Because there are so many homes for sale, some homes will just plain not sell. For many sellers who need to move out of the valley, its better to have a renter pay to cover the mortgage payment than it is to have a vacant house. Offering a house as a lease option, opens the door to the number of potential buyers.
Cover your mortgage payment. Because your house may not be able to sell right now at the amount owed, a lease option gives you one way to pay the mortgage while you wait for the real estate market to improve. Lease options can net more monthly income than just “renting” your home out. In addition, someone who has ownership interest in your property is more likely to take better care of it.
It’s harder for buyers to get financing. Mortgage loan underwriting standards are still very strict. While some potential buyers may have large savings, good credit, and excellent income, they may be unable to buy a house just because they switched careers or are self employed. These people can make excellent renters, and don’t have an option to buy.
Home ownership isn’t as appealing as it once was. Some qualified buyers just don’t want to buy right now. They fear that home prices will go down further, or just don’t want to commit to a certain house. Some people moving to Logan from other areas want to get a better feel for the area before committing where they want to actually buy. For people like this, a lease option is an ideal solution.
Higher Purchase Price. Offering your house as a lease option, may help you to net a higher purchase price. Only 22 out of more than 900 Cache Valley real estate listings are offered as lease options. This is a small percentage of the total inventory. People that want to buy, but cant get mortgage financing have no other option. In addition, if prices do continue to drop over the next few years, your contract lease purchase price has already been set. You may be able to get today’s market value for the sell of your property when the future market value is actually lower.
Increased number of potential buyers looking for the rent-to-own option increases the probability that you will be able to lease your home out. If you have only had limited showings, or can’t drop your home price any more, a lease option might be a good option to help you sell your home.