While you may wish to unlock your home’s equity, that doesn’t mean you want to go through the song and dance of putting your house on the market, paying a realtor and other fees, and having to move as soon as you accept a buyer’s offer.
Here, we’ll discuss how sell-and-stay programs work, as well as their benefits to you and your family.
A sell-and-stay program is usually a residential sale leaseback agreement between you and the buyer. The buyer, often a fast cash buyer company or agency, will purchase your home and then lease it back to you in a leasing agreement.
In other words, sell-and-stay programs are arrangements where homeowners sell their homes but continue to live in them as tenants or occupants after the sale. Your buyer becomes your landlord until the leasing agreement ends.
These programs are often useful for those who want to unlock the equity in their homes without having to move out immediately. This is an alternative to a reverse mortgage (a mortgage loan that lets you access the property's value). With a sell-and-stay program, you are selling your home, so the money you receive is yours, and not a loan.
Here are some of the key advantages of sell-and-stay programs:
Unlike traditional loans, where you can only access a portion of your home's equity, sell-and-stay programs offer full access to your home's equity. This can provide substantial and immediate funds that can be used for various purposes, such as debt consolidation, home improvements, or retirement funds.
Sell-and-stay programs can be a lifeline for homeowners facing financial difficulties and potential foreclosure. By selling your home to a fast cash buyer through such a program, you can avoid foreclosure and lease back your home at a more manageable rate, allowing you to stay in your home and regain financial stability.
One of the most significant advantages of sell-and-stay programs is the ability to stay in your home. While you will eventually need to move out based on the agreed-upon lease term, you can plan your move at your own pace, eliminating the rush associated with traditional home sales. The residential sale leaseback process is a smarter way to access the equity in your home without disrupting your life.
Once you enter into a sell-and-stay agreement, the responsibility for home repairs and maintenance shifts to your landlord (the buyer of your home). This relieves you of costly repairs and upkeep, allowing you to enjoy a more worry-free living experience.
Sell-and-stay programs eliminate several expenses associated with traditional home sales. There are no appraisal fees or realtor commissions to worry about, saving you money. Additionally, you no longer have to pay homeowners insurance premiums or homeowners association (HOA) fees, furthering your financial freedoms. Plus, your rent payments are likely to be lower than what you were paying for your mortgage.
Unlike refinancing or getting a second mortgage, sell-and-stay programs typically do not require a credit check. This can be helpful for homeowners with less-than-perfect credit scores or those looking to avoid the impact of a check on their credit history.
At The District PHX, we offer options through our Unlock-and-Stay program and other programs designed to give you access to your home’s equity on your terms.
To get additional information on unlocking your home’s equity, contact us and discover how a sell-and-stay program can benefit you and your family.