Competition Crunch!

If you are an FHA homebuyer in today's market you are probably very frustrated by placing offers and hearing from your agent that unfortunately your offer was not accepted. 

I heard something creative this morning on a real estate podcast that really reasonated with me. It may not work in all instances but it pushes your offer closer to acceptance. 

 It's called a "Lease Back Option".  It works like this. If the seller has been looking to purchase a home but hasn't found one yet.  Place within your offer the option for the seller to lease back the home from you for a specified period of time while  paying you rent until they find their new home.  You will own the home and still have to pay your monthly payment. 

This can be tricky related to potential post possession issues.  I would reccomend having an attorney draw up the lease.  A clause in the contract like this may work:   "The sale is contingent upon a lease back option drawn up by a mutually choosen attorney with general lease back terms of a 2 months rental period at $,$$$.$$ per month, leaving the home broom clean and free of personal items at the end of the 2 month term." 

This will work only if the seller is looking to move as well and that the realtors representing each client communicate effectively.   

It's a creative idea that may work if your loan package may not stack up against the competition.