How leasebacks can benefit Houston-area buyers and sellers.
A leaseback, also called a “sell and leaseback,” can be a great tool for today’s hot real estate market. Let’s take a look:
- What is a leaseback? It’s a financial transaction in which one person or company sells property to another, who then leases the property back to the seller. The lease/rental length and rate are agreed upon prior to final closing.
- How do sellers benefit? If you sell your home before you have a new one to move into, you can rent your former home from the new owners giving you more flexibility in terms of finding a home and packing.
- How does it help homebuyers? If you buy a home before the sellers are ready to leave or you’re ready to move in and your schedule is flexible, you can earn some income during the interim — a little extra cash is always nice!
- Another bonus? Since the rental market is very tight, buyers and sellers can breathe a sigh of relief if they don’t have to find a temporary apartment or rental property when moving from one home to another.