Hello Mariena:

Well, Lease Purchase agreements are becoming more common. The best way to get information like this is to work with a Buyer Agent. As most homes that are listed in the Lehigh Valley area for a Lease Purchase are usually listed for Sale also. The Seller is usually more interested in selling the property outright..but, they are stating they would be willing to work with someone on a future purchase. The way it works is you would be signing a purchase contact now for a future purchase and a Lease agreement with your downpayments. The exact details depend on the buyer and the seller but this can be done between the Buyer Agent and Seller's Agent...as this is what we do for a living. If you are not working with a Buyer Agent (no cost to you if the home is listed on the MLS) Then you need to get an attorney. Yes, you need to make sure you are pre-qualified and you are sure you will be able to purchase the home when agreed or you can loose your deposit money.

I am available to help if you need me, as this is my market area.

I hope this information has helped you.

They are becoming more common. In Georgia, mostly investors have used this tactics to sell properties in the past. The deal can be arranged as a Lease Purchase or Lease Option.

Keep in mind that a Lease Purchase is not a Lease with an option to buy. It's basically two agreements; a lease and a purchase (to happen in the future). Usually the down payment is non-refundable. If the purchase is never consumated the Seller may sue for damages or enforcement of the purchase contract.

They've become increasingly common as people have experienced more difficulty in selling their homes.

When it's very easy to sell--and when it's very easy for buyers to get financing--they're far more difficult to find.

There's plenty of information out there. Try the following:
http://www.creonline.com/catalog/lease-options.html
http://www.lease2purchase.com/
http://www.wendypatton.com/

A few other comments:

Have a lawyer involved. You need to protect yourself in a number of ways. And as you can see from Monna's answer, many Realtors discourage both buyers and sellers from considering lease options. If a lease option is the right solution for you, you want someone who knows and understands them.

Addressing Monna's concerns (I'm not "picking on" her; her concerns are legitimate but can be fairly and equitably addressed):

Concern: " If you lease it and then you definiately want to purchase the home, how do you establish a sale price? It is fair to establish a price today, or is it better to establish a price a year from now, for example, if that is when you were going to actually purchase it. "
ANSWER: Most lease options are structured so that a price is set up front. However, it's perfectly acceptable to build in some other method, such as getting an appraisal at the time of desired purchase. What must be clearly specified in the option is either: (1) the price, or (2) the method by which the price will be determined.

Concern: "If you establish a price today, how do you know it will appraise a year from now. "
ANSWER: You don't. Especially in today's market. That's why a lawyer will build in some protections for you. Such as the ability to extend the option if the property fails to appraise. Or an agreement by the seller that the price of the property will be lowered to the appraisal price. Or a refund of the option fee (which usually isn't refundable). All those are possibilities. And one of the great things about a lease option is that if the property value falls and you no longer wish to purchase the property, you simply walk away.

Concern: "Additionally, you know where interest rates are today, you don't know where interest rates, and mortgage requirements like credit scores will be next year."
ANSWER: True again. That's a risk you take. Just like the risk you take if you buy today for hundreds of thousands of dollars...you don't know where home values are going to be next year. And tell me: Which scenario would you rather face: (1) A lease option in which you know you can walk away if home values decline, or (2) A purchase in which you're locked into a 30-year commitment to pay for a property that's lost $100,000 in value in 12 months. Hmmm. Tough call. I'd consider a lease option the safer alternative.

Concern: "Also, what will change in your financial picture that will allow you to purchase next year and not this year."
ANSWER: Well, that's up to you. Maybe you know you'll be getting a raise next year. Maybe you're cleaning up old debts. In fact, that's what you should be doing: Positioning yourself to better qualify for the purchase. That's one of the beauties of lease options: They give you time to improve your financial picture so that you can buy in a year.

Lease options aren't the right solution for everyone. But in the right circumstance, they're a real win-win for both the buyer and the seller.

Hope that helps.

Lease purchase agreements are not common. If you are thinking of doing a lease purchase because you do not have cash saved, are you sure you can save enough next year? If it is because of credit issues, they are getting stricter so it may be difficult next year as well. But if you do decide to look for lease purchase options make sure you have an attorney who will look at the agreement.

I don't recommend lease purchases for either the buyer or the seller. If you lease it and then you definiately want to purchase the home, how do you establish a sale price? It is fair to establish a price today, or is it better to establish a price a year from now, for example, if that is when you were going to actually purchase it.
If you establish a price today, how do you know it will appraise a year from now. Additionally, you know where interest rates are today, you don't know where interest rates, and mortgage requirements like
credit scores will be next year. Also, what will change in your financial picture that will allow you to purchase next year and not this year. If you want to rent a home, then rent it, if you want to purchase, than purchase,
but a lease purchase leaves too many loose ends untied, based on my 30 years real estate experience.

Visit our website at http://www.thesomersteam.com . We have a section devoted to lease purchase. In addition, we have been marketing a whole condominium building for lease purchase. It has many benefits fot the buyer and has some benefits for the seller too in slower real estate markets.

Good luck !

I would consult an attorney. I've only done purchase agreements.