In a nutshell, the mortgage market has tanked, and even folks with good fair credit and jobs are finding it difficult to get a mortgage today.  This has left a large market of buyers who earn good dollars monthly, and perhaps even have some kind of a down payment, however they can not obtain bank financing right now.  You have a house that you would like to sell, they are looking for a house to buy …. how can you make this work for the both of you?

A Lease Purchase allows you as the owner of the property the opportunity to lease your home to a buyer who wants to buy it in the near future.  The buyer will typically sign a lease agreement, along with a separate Option To Purchase, which specifies the agreed upon purchase price, the amount down and the term of (time limit) of the Option to Purchase.

A Lease Purchase agreement allows the seller to fill a vacant property in a stagnant market with a potential buyer, and allows the buyer to move in and “test drive” the property while they are working on fixing a credit bump, or saving for a larger down payment required by the bank.  There are other forms of “Seller Financing” that you can also consider and we will discuss those alternatives in a future post.

** Disclaimer – We are not Attorneys.  If seeking real estate advice, please consult with a local attorney.

One thing that we have seen popping up on Champaign Real Estate listings are words such as “Seller Will Finance”, Rent To Own, Lease Purchase, and Owner Financing.  You know that the market is bad, when Realtors in Champaign Urbana are offering to sell houses on terms.   It’s not a normal thing, however it can be a healthy addition for the market.  Both for buyers and sellers.  In our next blog post we will discuss in more detail some creative ways to buy and sell houses in Champaign Urbana, and some benefits for both sides.

The real estate market is still showing signs of weakness.  According to our sources, the data at the Champaign County Association of Realtors has set a record for the most price changes (reductions), for the past 6 months in a row.  This is painting a solid picture of the housing market.  The price that home sellers think they should be getting for their homes for sale, they aren’t getting.  The houses may be worth the higher price on paper, however it is a buyers market, and the buyers are establishing the market price in today’s market.

As mortgage lenders continue to raise ladder on credit scores, less and less buyers will qualify for loans.  With the local house listings at an all time high, this scenario will certainly not be of help!  Hold on to your boot straps, it may be a long wait!

If you have any property that you would like to sell quickly for cash, contact Handyman Home Buyers today.  You can call our office at the number above, or simply click the “Sell Your House” tab at the top of this page.  Get an offer for your property emailed to you in 24 hours or less!