Travis Daggett with Cornerstone Properties, talking again about lease options, one of the top alternatives when selling your home. And one of the common questions that we get is how long is the lease period? In other words, how long till the tenant buyer is going to purchase my house.
How Long Will it Take to Sell My House?
And the answer is it depends. So, we work with a number of mortgage brokers and credit repair companies. And we have a number of tenant buyers and they’re all in different categories. So, categories based on the month rent that they can pay, how much house they can afford or what price point they want to purchase house at and then also what time period their credit is going to be clear so they can qualify for a loan.
Probably the shortest would be six months, buy typically, it’s a year. And it could even be longer, it could be a couple years, probably the most we go is five years. And that either works for somebody or it doesn’t work for somebody. So remember, as the homeowner, you are signing a lease option agreement with a tenant buyer, which is really the combination of a rental agreement and a purchase agreement.
And you know that at the end of that option period, the tenant buyer has the option to purchase the property. So if you’re planning renting out your property for a year anyway, or two or three or four or five years, then a lease option could be a great scenario that could be a win, win, win for everybody.
Now, if you definitely have to sell your property right now, this month, then a lease option may not be the best option for you. But always keep in mind, there are a lot of times people think that they’re gonna sell their property right now and it ends up sitting there month after month. Particularly if it’s this time of year, in the winter, especially if you want to get full price and you can do that with a lease option, you can’t always do that if you’re listing it with a realtor. And also, if the market shifts. Here in the Eugene market, the market has shifted. A lot of people don’t know that, but the market has slowed down. So we see properties sitting there longer, we don’t see all the offers anymore. We don’t see all the offers above asking price. We’re seeing offers below asking price.
So, all those factors contribute. And remember, a equal market between a buyers and sellers market means that properties sell in about six months. Six months of inventory, or properties take six months to sell. So, at some point, we will be back in that market, where it takes six months. And it could even go beyond that, seven, eight nine, remember back in the 2008 to 2012 time period, in certain markets, there were properties in areas where the average time on market and inventory was a year. So, it’s not always that it’s going to take a lot longer to sell your house using a lease option.
So, that answers the question how long is the lease option period. And of course, the answer is, it depends. And naturally, you can put a clause in the contract that says it’s a year, then it can be extended. But that’d be up to you.
Travis Daggett with Cornerstone Properties, hope that’s helpful for you. If it is, please share and feel free to ask any questions, comment wherever you see this video. And of course, you can give us a call anytime. Thanks.