What are Lease Options?
Options are a way to buy and sell homes without an immediate conventional mortgage. This option to buy and sell are typically better solutions for sellers than most people think they are, largely, if the lessee does buy the house, the seller has accomplished his or her goal of selling the house. Lease option buyers are often willing to pay market value or even slightly higher, due to their unique circumstances, so the seller can be sure to get a fair price for the home. During the length of the lease option, the seller is able to collect enough rent to cover the mortgage and not incur additional expenses associated with a standard rental originated as a tool to help homeowners move property they had difficulty selling. This method of selling opened up the buyer pool to renters who were not quite ready to buy.
Beware Before you Lease
Although lease options are not difficult to set up, many people don’t understand how to properly structure them. The key to success is to treat people fairly. Promoters should take pains to qualify their buyers to weed out people who are never likely to purchase the house.
Problems With These Options are…
Problems arise when investors or sellers intentionally target consumers who are relatively unsophisticated about real estate or contract law and who have little real likelihood of ever qualifying to purchase the property. In these cases, the promoters are essentially in the rental business and convince unsuspecting tenants to pay them fees and premium rents, plus pick up most routine property maintenance costs.
Benefits of Lease Option
The real estate market is suffering right now. Sellers can’t sell their homes and buyers can’t get mortgages. Gone are the days of listing a home and expecting to sell it quickly. It’s time to get creative to not just survive, but to actually thrive in this economy. If you’re not getting any showing and you can’t reduce your price, a lease option is a great way to sell your house immediately or in one day if you choose.
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