4 things Denver buyers and sellers need to know about leasebacks.
A leaseback, also called a “sell and leaseback” can be a great tool for a Denver real estate market that has really tight inventory. Let’s take a look:
- Leaseback definition: It is a financial transaction in which one person or company sells property to another, who then leases the property back to the seller. The lease length and rate are agreed upon prior to final closing.
- Benefit to sellers: If you sell your home before you have a new one to move into, you can rent your former home from the new owners giving you more flexibility in terms of finding a home and packing.
- Benefit to buyers: If you buy a home before the sellers are ready to leave or you’re ready to move in, you can earn some income while waiting. Who doesn’t love a little extra money?
- Bonus benefit: The housing market in Denver is very tight, especially after the Marshall fire destroyed more than 1,000 homes. A leaseback lets buyers and sellers breathe a sigh of relief if they don’t have to find an interim apartment or rental property when moving from one home to another.