Frequently Asked Questions about our Lease Option program…
What is a Lease Option?
A lease option is essentially a purchase contract combined with a rental agreement. The buyer leases the property for a specified period of time and then has the option of purchasing the property before the end of the lease agreement. Sales price, length of rental, closing costs, and maintenance are all negotiated much the same as a conventional real estate transaction. A lease option, if properly utilized, is both a seller and a buyer’s dream come true because it can eliminate many of the negatives normally attributed to the selling and buying of a home.
How does it work?
We present a monthly lease amount as well as a pre-determined sales price that is agreed to by all parties. A lease option/purchase is basically a monthly lease set up over a pre-determined period of time. At the end of that time, we purchase the home from you for whatever the pre-determined price is.
The basics are simple:
You rent your property to Axiom
You give Axiom the right to buy your property for a set price.
Axiom places a tenant/buyer in your property.
The tenant/buyer receives the right to buy your property at or above your agreed price.
How much is this going to cost me?
The answer is simple. It doesn’t cost you anything. We make our money from our tenant/buyers, not from you. If you decide to do a lease option with us, you do not have to pay us a commission.
What are the advantages of selling my home by lease option over listing it with a Realtor?
We make your monthly payments while a tenant/buyer is qualifying for a loan. All your expenses related to the house are taken care of.
Another advantage is that our objective is to put only high-quality tenant/buyers in the house since we make our profit by selling for higher than we buy. Since we guarantee all minor maintenance on the house, it is in our best interest to ensure that our tenant/buyer will take care of the home and eventually secure financing to cash you, the seller, and us out. This means that we put our tenant/buyers through an intensive pre-screening process before they are even permitted to look at the house.
We don't work for commissions. And, because our profits are made by selling for slightly higher than what we buy for, we have a vested interest in the house and in making sure it gets sold.
How long does it take before your tenant/buyer cashes me out?
That can depend on a number of different factors. We work with many mortgage brokers that are usually able to get most people financed after they have paid for 12 months on the lease option. Since everyone's credit history and circumstances vary, that time period can be shorter or longer for the tenant/buyer that we eventually put into the home. Because of this, we cannot guarantee the exact time our tenant/buyer will secure financing. However, until our tenant/buyer qualifies for financing, we continue to pay all the expenses related to the home. It is also in our best interest to get our tenant/buyer a new loan as soon as possible since that cashes us out as well. We aggressively work to get our tenant/buyer financed as soon as possible.
Why don't I just sell my house myself or rent it in the meantime?
These are always options available to you. The difference would be that you are responsible for your monthly payments, maintenance, and repairs during the selling period. You need to try to find someone who can actually qualify for financing, wait for them to get approved, and hope that they don't pull out of the deal, making you start the whole process over again. Renting during this period opens entirely new difficulties that would-be landlords often overlook, especially when you are trying to show the home and sell while renters are living there.
Why don't I just find my own tenant/buyer?
We have a full-service bulk mail processing facility with the capacity to process over 20,000 letters and postcards per day and an advanced data mining team that’s trained to locate the most qualified potential tenant/buyers in any market. We will leverage these resources to locate the perfect candidates for your property in a fraction of the time it takes a realtor or other traditional methods. If you have the ability to reach over 3000 potential tenant/buyers per month and the expertise to screen potential tenant/buyers, check references, know what sort of credit scores will allow someone to be able to be financed, deal with maintaining your home while someone else lives in it, work with mortgage brokers to get them financed, and finally, process all the paperwork and set up a closing, then finding a tenant/buyer on your own would be a viable option for you. If you lack the expertise in any of these areas, we are able to help.
What if your tenant/buyer doesn't buy the house?
Our tenant/buyers are carefully pre-screened to ensure that they want to buy the house and are able to do so at some point in the future. However, circumstances can change in someone's life, such as an unexpected job transfer that can make it necessary to move. In situations like that, we continue to pay all the expenses for the house while we find another qualified tenant/buyer to put into the home. Remember, we make our money when your house sells.
How can you say I won’t have any vacancies?
You won’t because your tenant will be Axiom. We’ll agree on a lease term—3 years, 5 years, whatever you want. And that’s the end of your vacancy problem. If our tenant/buyer moves out, then that’s our problem, not yours. We’ll keep paying like clockwork.
How do you eliminate my maintenance and repair problems?
You’ll have 4 levels of protection. First, Axiom will purchase a homeowner’s warranty at no cost to you and will keep it in force for the life of the lease. Second, the tenant/buyer will be required, by the terms of his or her lease, to perform all regular maintenance and repairs. Third, if any problem comes up that the tenant/buyer is unable or unwilling to perform, Axiom will do it. And, fourth, you’ll maintain your homeowner’s policy to protect against incidents covered by insurance.
What do I have to do?
For the most part, as the homeowner, you don’t have to do anything. We take care of all the paperwork as well as the placement of tenants and monthly payments. And because you don’t have to worry about the day to day repairs, the only thing you need to decide is where you want your monthly checks sent. It is really quite simple.
How do I get my payment each month?
We can set it up however you like. Some of our homeowners like for us to electronically send the payment each month straight to their bank account. Others prefer us to set up an escrow account where we mail the rent to the escrow account and the account pays the mortgage. (You can call the escrow account anytime and request a statement of activity so you can see when the rent was paid and when the mortgage was paid.) We normally set it up to automatically pay your lender each month and send you the difference. That way you won’t have to worry about a thing.
What if a tenant tears up my house?
There's no way that we can guarantee you that a tenant won't damage your house since we won't be living with them. But under the agreement that we will have with you, as the seller, if that happens, we will repair it at our expense. Our objective is not to find a "tenant" - our objective is to find a Buyer who will eventually own your house. We investigate them thoroughly before entering into an agreement with them. Damages are rarely a problem. In fact, in most instances we have found that our buyers many times have improved a house with new carpet or some other upgrades, such as fencing. Again, if it does happen, we'll fix it, and I put that in writing.
Who handles the paperwork? Do I have to pay for that?
Our attorney handles all of the necessary documents to make the transaction happen. And the best part is that you don’t need your PhD to be able to read them. Of course, you are always welcome to have these items reviewed by your real estate agent or lawyer at any time during the course of the transaction. We want you to be 100% comfortable with everything before moving forward.
Any Other Questions?
If you have any other questions or concerns, please feel free to call us at 678-496-3427.