You’ve heard all the news about the low home prices, low interest rates, and that there is a first-time homebuyer tax credit.  You’d like to take advantage of this buyers’ market, but you have months left on your lease.  What do you do?

Unless you can pay cash, whatever the situation, the first step always remains the same.  Get prequalified for a mortgage loan.  If you can’t get the loan, the rest is moot.  However, you may find you’re close to being loan eligible, and with a little time and effort you can get there.

Once you have been prequalified for the loan, it’s time to speak with apartment management.  Many apartment complexes allow you to break your lease for a fee.  This fee will vary from place to place.  It could be a month’s rent, plus a re-letting fee; it could be two months’ rent; it could be a re-letting fee plus you’re on the hook until the apartment is rented.  These fees also vary in price.  Some are reasonable, while others are quite high.

Now that you’ve been prequalfied, and gathered the information about breaking your lease, it’s time to speak with a Realtor.  You want to make sure he/she is willing to give up money to help you break your lease.  Sadly, I’ve heard a number of stories where Realtors will not give up any commission to help their client get into a home.  Now it has to be reasonable.  You can’t expect your agent to give up practically everything.  We have to make a living too.

The best scenario for getting money for a lease buyout is for your agent to help you with new construction.  While builders cannot legally buy anyone out of a lease, they can help the agent do so by providing a bonus to offset the cost.  I’ve done this many times with my clients.  I’ve paid as much as $4,000 for my clients to get into their new home.  It can still be done with resale homes, but it becomes a little more tricky.  Sellers aren’t always confident the extra money is going towards the buyer’s lease.

If you’re having trouble with the property management, and/or if you would rather have your agent speak with them, most are willing to do so.  If a price that works for everyone cannot be reached, you have one option left.  You can build.  This is the only time in the last three years that I’ve seen builders negotiate pricing on build jobs.  You can lock in at today’s pricing, and in some cases still lock your rate for a long term.  Either way, if you want to take advantage of this incredible buyers’ market, you have options available.

Blog article by Chad Underwood, Owner/Broker, Chad@NorthTexasHomeFinders.com, check us out at www.northtexashomefinders.com.