A new way to lock in your gains

Housing prices have hit record levels in recent years thanks to a fortuitous combination of low interest rates and low supply; however, the current mix of sky-high prices and rising interest rates are starting to cool the market, and the upper hand is starting to shift to buyers.

If you’re living in a home that you know isn’t going to be your long-term residence, but aren’t yet sure what’s next, the Figure Home Lease Back can help you take advantage of a waning seller’s market and stay in your home until you’re ready to move.

What is Figure Home Lease Back and how does it work?

Figure Home Lease Back is a new type of sale-leaseback solution for homeowners. The way it works is pretty simple: Figure buys your home at a price based on comparable home sales and gives you a lease, so you can continue living there until you’re ready for your next step.

Using Figure Home Lease Back can help you lock in the gains from selling without the hassles of moving. It also releases you from the responsibilities of owning a house, like paying property taxes, managing upkeep, or handling major repairs. You can stay as long as you like, as long as you stay current with your payments; and if you decide later that you want to own again, you can buy your home back.

Cash in on current value

Over the past nine years real estate prices have shot up, but many experts don’t expect this high-growth trend to continue. In a recent survey of 100 real-estate economists and experts conducted by Zillow and Pulsenomics, most predicted home value growth to slow from the current 8 percent annual growth rate to a meager 2.9 percent in 20201. Some of the hottest housing markets are already showing signs of deceleration. Seattle, which was leading the nation in home-value growth in 2017, reported the greatest slowdown over the past year. This is not to say the value of your home will drop, but it likely won’t grow as quickly as it has in recent years.

Selling is the most effective way to cash in on your home’s current value, but in most cases you would have to move as soon as the sale closes. With the Figure Home Lease Back, you can stay in your home while considering where to invest your sale proceeds and when you want to move.

Take the stress out of selling

Let’s be honest, selling a home is far from fun. In fact, many people consider selling a home one of the more stressful activities of a lifetime, ranking it as high as divorce or death of a loved one2. The packing, cleaning, de-cluttering, repairs, open houses, and even nosy neighbors can make for a major headache that doesn’t go away, and we didn’t even mention the move.

Also when markets shift to buyers, sellers have to be more flexible with their bottom line and terms of the sale. Homes often sit longer and sellers have to do more to encourage movement. If you find yourself needing to sell quick in a market that’s not in your favor, you may have to reduce the sale price or offer to cover expenses for the buyers.

Figure Home Lease Back sales are straightforward. You don’t have to worry about cleaning up or for showings, clearing out for open houses, or wondering what you may be asked to pay for.

Do away with cost and hassle of ownership

Even if you own your home outright, it’s not free to live there. The everyday costs of homeownership – maintenance, property insurance, and taxes – are expected and can be budgeted for, but surprise repairs pop up. Experts recommend setting aside one percent of your home’s value for annual repairs. But as a homeowner, you’re probably well aware that repair costs don’t show up at evenly divided intervals. Rather, it’s more common for homeowners to go several years with no repairs then be faced with a major expense. A new roof can cost anywhere between $1,700 and $10,000, air conditioners start around $1,500, and a new water heater, almost $1,0003. These are the real costs, but you will also have to spend time finding a trustworthy repair person and overseeing the work, which have a cost not associated with dollars.

Figure takes care of maintenance and all repairs for Figure Home Lease Back residents, freeing up their time (and money) for the things they find more enjoyable.

Take your profits and your time

If you’re in a house that has appreciated considerably, and you know that it’s not your long-term home, you could consider selling. Of course you could go through a traditional sale, but you’ll likely have to spend time prepping and maintaining your home for showings, and then you’ll need to pack up and move when buyer comes along. Or, if that all sounds like more hassle than it’s worth, you could consider the Figure Home Lease Back and take your profits now and not move until you’re ready.

*Figure Home Lease Back is available in Atlanta, GA; Cincinnati, OH; Cleveland, OH; Dallas, TX; Houston, TX; Jacksonville, FL; Philadelphia, PA; Phoenix, AZ; Pittsburgh, PA; Reno, NV; San Antonio, TX; and Tampa, FL.

1. Zillow
2. University Hospitals
3. Home Advisor