The District PHX Blog

5 Questions To Ask When Considering a Residential Sale Leaseback

Written by Andy Griffin | Apr 9, 2024 8:06:52 PM

If you’ve decided that a sale leaseback program is right for you, it’s time to consider which company offers a program that will fit your needs. After all, the process of selling your home and renting it back may be different depending on which program — and which fast cash buyer company — you choose. Here, we’ll go over questions to ask as you narrow down your options.

Ask These 5 Questions Before You Choose a Residential Sale Leaseback Program

When asking questions, it’s a good idea to have some information on hand, such as your goals for selling your home. This will help you to see which program is the best fit for your situation. 

1. What is your qualification process?

A good answer includes a detailed step-by-step process. A professional company is likely to mention the evaluation of your property, financial situation, and the terms of the leaseback agreement. They will not shy away or dismiss your questions, and they will offer advice (no strings attached) on your options for selling your home

An unprofessional company will give you vague options and promises that sound more like a scam than an agreement. Look out for companies who ask for payment for services before a sale leaseback agreement has been signed. 

2. What is a typical timeline for a residential sale leaseback?

A reputable company would outline the various stages of the process, including property evaluation, offer presentation, negotiation, and closing. It should also provide an estimated timeframe for each stage. 

The timeline for the lease should be a reasonable range from a few months to a few years and should be negotiable. It’s a good sign if the company says that they will work with you to decide on your move-out date so that you can plan accordingly.

On the other hand, a bad answer lacks clear milestones or deadlines and can feel a bit “pushy,” as they are trying to get you to sell your house to them on their terms.

3. Do I have to move out?

While the purpose of a sale leaseback is to sell your property while remaining in it, the lease is usually a temporary solution. 

A good answer would clarify that you will eventually need to move out, but not immediately. The terms should be agreed upon with your input, allowing you time to access your home’s equity without having to uproot your family suddenly. Instead, you can build your wealth and plan the next chapter of your life.

A bad answer would be misleading, promising that you can stay forever or give you a set move-out date without your input.

4. How much can I get for my home?

A reputable company will base its offer on thorough research and assessment of your property's market value. A good answer would include asking for information about your home and giving you a fair fast cash offer. 

The company will be upfront and honest about how fast cash offers are typically a bit lower than what you may get should you sell your home through a real estate agent. However, you won’t need to pay any realtor commission fees and other expenses. 

A bad answer would give you an indefinite range or an exact amount without researching first.

5. Who takes care of closing costs and associated Fees?

In a sale leaseback transaction, closing costs and fees are involved. A good company will be transparent about who covers these expenses. A good answer would include details about what the company covers and what you are responsible for. 

On the other hand, a questionable company would be unclear or shift the responsibility entirely onto you, leaving you with unexpected costs come closing time.

 

A Residential Sale Leaseback Program That Works for You

When considering a residential sale leaseback, ask the right questions so you can feel confident when it’s time to pick your program. 

With District PHX, you can explore all your options and meet with experienced professionals to discuss our process, understand your program options, and receive an estimated offer.

If you're ready to explore the benefits of a sale and leaseback program that ticks all the boxes, don't hesitate to contact The District PHX today.