WHAT IS A LEASEBACK?
Have you thought about selling recently? Like many others, you may have tossed the idea around but wondered “But where will I go?”
If you need to sell before buying, either because you need the money for the downpayment, or wouldn’t qualify to hold both mortgages at the same time, a leaseback option may be a great option to consider.
So what is a leaseback? A leaseback is an agreement between the buyer and seller that allows the seller to continue living in the home for an agreed-upon period after the sale, while the buyer assumes the role of landlord.
This can be an ideal option for sellers who need more time to find another home once they sell their current home.
Do you need to sell your home first to qualify for your next home?
This can be a great option if you need to sell your home first in order to qualify for your new home, or if you need the money from the sale for the downpayment. This would allow you to settle on your current home, but you would not have to move out right away (this can be anywhere from 30-60 days).
In a competitive market, you may even be able to negotiate a leaseback at no cost, which can give you a little extra cushion for moving expenses.
Want to move but worried about where you’ll go?
If you’re planning to sell your home in the near future, it might be worth exploring the possibility of a leaseback option. This arrangement enables you to take advantage of the current seller’s market while giving you the freedom to search for your new home without the need for temporary housing.