What’s a Lease-Back?

    Have you heard of a lease-back before? They are a great tool for home sellers.

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    Today I’m going to educate you on what a lease-back is and why you absolutely want your agent to negotiate one for you on the sale of your house.

    First, let’s define what a lease-back is. A lease-back is when you have sold your home and are leasing it back from the new buyers for a short period of time. There’s typically a minimal fee involved ($50 a day or so), and we generally negotiate a 10- to 14-day lease-back for our sellers.

    This makes things much more convenient for you as a seller. It ensures that you can hire your movers, start packing, and get moved into your new place without having to feel rushed.

    A lease-back also helps you avoid risk. What happens if the loan falls apart? Maybe the buyer’s loan doesn’t get approved or the appraisal comes in 20% too low. What happens when we close on the house and discover there has been wire fraud?

    A lease-back helps you avoid unnecessary risk.

    There are several things that can cause a deal to be delayed by four weeks, four months, or fall through altogether. I wanted our clients to avoid this risk, so about three years ago I decided to ensure that all of our clients were aware of what a lease-back was and how it could help them out. Since then, I can’t think of a client who hasn’t exercised the option.

    I hope this has cleared up exactly what a lease-back is, how it benefits you as a seller, and why it’s such a useful tool. If you have any questions for me or you’re interested in selling your home any time in the near future, don’t hesitate to give me a call or send me an email. I look forward to hearing from you.

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