Navigating a move, a transaction, picking a new house and navigating moving your family all at the same time can be challenging. As a result, one option you might want to consider is a leaseback.

What is it?

A leaseback is a lease after sale. You get to stay in your home for an agreed upon amount of time in exchange for a dollar amount just like any other lease. Normally the terms of the leaseback are negotiated prior to accepting an offer. The reason being is that the time and total sum is likely to vary drastically. This could range from a free leaseback for 6 months to $25,000/month for 2 years. The possibilities are endless. It just depends on what both parties agree to. In general, a leaseback is structured just like a lease including length of term, monthly rate and security deposit. It’s really a lease that is attached to the backend of a purchase. It just happens to be negotiated in a purchase contract just like any other part of the contract.

But I’m a Buyer

If you’re a buyer, this may work to your benefit because maybe you’ve found the perfect home, but you still have 6 months left on your lease. Let the seller stay in exchange for making sure that your mortgage and property taxes are covered!! Buying a property that will need a heavy remodel or to be torn down? Let the seller stay for a dollar amount while you develop your plans and can break ground as soon as the seller is gone.

A leaseback can be an excellent tool for a number of circumstances. Most of all, a leaseback can remove some time pressure while you find your replacement home immediately. It’s another tool in a toolbox that can help you make the right decision for you and your family.