There has been an increased buzz and more people asking about lease options and rent-to-own properties. These can be great opportunities for both buyers/renters and sellers. If a property is vacant and the seller is open to renting the property they ought to consider doing a lease option/rent-to-own. If someone is looking to buy in the next couple of years they may like the idea of moving into the property they are going to buy now saving moving expenses let alone some of the other great benefits.
Why do people lease option or rent-to-own today instead of buying right now? There are actually many reasons: credit isn’t at the level it needs to be to purchase, they have had a bankruptcy or foreclosure within the last 2 years, going through a divorce (if they purchase it could be considered marital assets), moving into a new area, don’t have the down payment, haven’t been in their job long enough, or insecure about their job/company to name a few.
I call lease options/rent-to-owns the Wild, Wild West. Everything here is negotiable. Let’s look at each component. Close date-how long does the buyer need in order to be able to close? Is there a timeframe the seller NEEDS? Rent-this depends on whether the new owners need some of the rent to go toward purchase price (if they do it MIGHT be increased), Security Deposit/Non-refundable option consideration money-this is money that may not be returned if the buyer backs out of purchasing the home. Purchase Price-you might need to come in with a full price offer depending on what else you are asking for.
If you or someone you know is looking for a rental or considering a lease option it is very important you work with an agent who understands them. Please let me know what I can do to help. Contact me at (847) 877-9881, amy@amykite.net or www.amykite.com.
