Using A Lease Option To Sell Your House in Boise

The exit strategy you choose when selling your house can make all the difference in maximizing your return on investment. A lease option is a highly effective alternative to a traditional sale, giving you the potential to earn more from your property. At the end of the agreement — typically one to three years — the tenant can exercise their option to purchase or walk away, and you keep the upfront option fee either way.

Similar to being a landlord, you’ll be renting out your property — but with a key difference. These tenants have far more invested than typical renters, essentially test-driving homeownership while working to improve their credit or save for a down payment. They’re willing to pay a premium for that opportunity. With the right tenant and a well-structured agreement, many Idaho sellers find this strategy works exceptionally well. Read on as we explore using a lease option to sell your rental property in Boise.

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Asking Price

One of the biggest advantages of a lease option is that you’re in control. You set the sales price upfront when you use this strategy to sell your house in Boise. Prices are often set above current market value to account for expected appreciation over the contract term. You take on the risk of a sudden value spike, while the tenant assumes the risk of a potential drop — a fair trade for both sides.

Option Fee

Using a lease option to sell your house in Boise means you’ll collect a non-refundable option fee upfront — typically ranging from one to five percent of the sales price, though fees as high as twenty percent aren’t uncommon. Based on a national median listing price of around $450,000 as of May 2022, a five percent fee would equal $22,500. That amount is credited toward the purchase price if the tenant decides to buy.

Tenants Maintain Your Property

While you’ll retain the title and remain responsible for taxes and insurance, most other obligations shift to the tenant when using a lease option to sell your house in Boise. In most agreements, tenants take on the financial responsibility of maintaining the home and handling day-to-day repairs — reducing your burden as the property owner throughout the contract term.

Above Market Rent

A lease option also allows you to collect above-average rental income in Boise. The portion paid above standard market rent is known as the rent premium. If the tenant exercises their purchase option, this premium is credited toward the final sale price. If they choose not to buy, you keep those funds — making it a win either way for the seller.

Speak with one of our experienced home buying specialists at Idaho House Buyer today — no pressure, no obligation. With almost two decades serving Idaho homeowners, we want you to feel confident you made the right decision long after closing. At Idaho House Buyer, we’ll walk you through a side-by-side comparison of a traditional listing versus the lease option approach, and we can even make you a direct cash offer for your property as-is. At Idaho House Buyer, full transparency is our standard — we break down every number so you can make the most informed decision about selling your Boise house.

Ready to discover the win-win benefits of using a lease option to sell your house in Boise? Call Idaho House Buyer at 208-581-5424.

Do you have a rental property outside the Boise area? We buy houses Twin Falls, Nampa, Payette, Jerome and more. Reach out today to see how we can help you.