How leasebacks can benefit Portland-area buyers and sellers.
Learning about leasebacks might be the best thing you do today. Here’s what they are and how they work.
A leaseback is an agreement in which the home seller rents the house or condo from the buyer after selling it. The details are agreed upon, which include a pre-determined amount of time at a specified rate and put in writing at the time of purchase.
Why would you need a leaseback? If the seller needs extra time to pack and move, the buyer can rent the home back to the seller. This also works well if the buyer isn’t able to move in immediately but wants to buy the home before it gets purchased by someone else.
You might hear the term leaseback being also used in business situations or with investors (as a way to free up balance sheet capital or deduct rent payments as a business expense), but in the case of homeowners, it’s a pretty straightforward concept.
It’s our goal to provide mortgage insights to Portlanders by sharing information like this on a regular basis. If you’re ready to buy, we’d love to chat. If you’re not quite ready, check back often to learn more about the homebuying process.
A leaseback is an agreement in which the home seller rents the house or condo from the buyer after selling it. The details are agreed upon, which include a pre-determined amount of time at a specified rate and put in writing at the time of purchase.
Why would you need a leaseback? If the seller needs extra time to pack and move, the buyer can rent the home back to the seller. This also works well if the buyer isn’t able to move in immediately but wants to buy the home before it gets purchased by someone else.
You might hear the term leaseback being also used in business situations or with investors (as a way to free up balance sheet capital or deduct rent payments as a business expense), but in the case of homeowners, it’s a pretty straightforward concept.
Tips for buying and selling success
Leasebacks are just one of many tools that can facilitate an easier transition when buying or selling a home. It’s also a great way to avoid having to find temporary housing — and moving a house full of stuff multiple times — if everyone’s schedules don’t align.It’s our goal to provide mortgage insights to Portlanders by sharing information like this on a regular basis. If you’re ready to buy, we’d love to chat. If you’re not quite ready, check back often to learn more about the homebuying process.