The real estate market is booming. Experts say that the spring real estate season has started early.
Why? Interest rates.
That means something different for lease-option buyers than it does for sellers.
What's an early spring market?
Spring is the beginning of real estate season. Real estate season is the time of year when homes sell the fastest. There are several reasons for this.
- Parents looking to move into a new school district
- At the beginning of the year, companies are more likely to hire and people are more likely to relocate.
- The weather is nicer for touring homes throughout the United States
This year, interest rates have launched an early start to this season.
What does an early spring market mean for rent to own buyers?
While you might have another year before decision time on your rent-to-own property, you may want to make your choice a little early.
Interest rates are low and stable. That means that over the course of your mortgage, you'll pay less. And when that bulk amount is divided across 30 years, your monthly payment ends up being less.
A lower interest rate means that you're more likely to qualify for a mortgage because your payments are more affordable. Your monthly payment should be less than 30 percent of your monthly income. Therefore, the lower your interest is (and thus your monthly payment), the more likely you are to qualify!
What does an early spring market mean for sellers?
An early spring market means less pressure on your rent to own buyer. Now is a great time to be at the end of your lease term.
If you're coming up on the point where your buyer maks a final choice on your property, it is the win-win season.
On the one hand, if your buyer decides to purchase the home – your profit is made! You've sold your home and made money off of the monthly rental income.
On the other, if your buyer decides not to buy – don't fret! You still get to keep the option fee, the full lease term's worth of rent payments and any rent credits. But, more so, the market is good. There's a strong chance you'll earn full profit from the sale of your home quickly.
Estate Exterior by Pixabay is licensed under the Pexels Photo License.