Home Buying in Lancaster>Question Details

gretchenzimm, Home Buyer in Lancaster, NY

How do you approach seller to do a lease to own?

Asked by gretchenzimm, Lancaster, NY Tue Oct 25, 2011

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Keep in mind that the conditions have to be right from the seller's perspective. For example, the seller can't be in the position of needing all his equity immediately. So if the seller needs to sell his house in order to buy another one, the seller can't afford to do a lease-option or lease-purchase. Also, generally, the seller has to be motivated. If he's just put his property on the market to sell, likely he's focused on selling it . . . and so won't be open (yet) to a lease-option.

On the other hand, if the property's been on the market for months, especially if it's sitting there empty, the seller is likely to be a lot more receptive to a lease-option.

So, assuming the seller is financially able to do a lease-option and is reasonably motivated, here's what you say: "Mr. Seller: I'd really like to buy your house. It's just what we've been looking for. However, we're not in a position to buy it today. So what I'm proposing is that you lease the house to us for a year or so. We'll pay full-market rent, perhaps even a bit more than full market rent. That way, your empty house doesn't sit there empty. You'll be getting a rent check from us every month, and we'll take good care of your home. We'll agree to a purchase price now, so there won't be any surprises for either of us. And then, within two years--and we can set that date, too--we'll buy the house. You'll get exactly what you want--a sold house, plus rental income and someone taking care of your home in the meantime. And in the meantime, you'll have excellent tenants--us--who plan on buying. Does that sound like it would work for you?"

Make sure you're working with a Realtor who understands lease-options and lease-purchases. And have a lawyer help you with the option agreement. There are various provisions you should include to protect yourself.

Finally, here's a link to a blog I wrote on how to find lease-options: http://bit.ly/findaleaseoption

Hope that helps.
1 vote Thank Flag Link Wed Oct 26, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Keep in mind that most sellers would rather sell outright; therefore if you wish to approach any current owner who is listed on the market, consider working with an agent of your own.
0 votes Thank Flag Link Wed Oct 26, 2011
I highly recommend contacting a realtor that knows this Western NY market. If interested, I can put you in touch with someone that can assist you in this inquiry and process. Please call my office at your earliest convenience.

Ron Fronckowiak
R & R Funding, Inc.
Lancaster NY
716-685-9696
Web Reference: http://www.RandRFunding.com
0 votes Thank Flag Link Wed Oct 26, 2011
You just have to ask. Make an offer to lease option the property. Often times landlords trying to rent their properties out would be amenable to the idea.
0 votes Thank Flag Link Tue Oct 25, 2011
First, you make sure you understand what a true "lease to own" means ( non-refundable upfront money that you forfeit if you don't exercise your option to buy..... price determined now, not later......all your rent will NOT go towards the purchase - only the amount over the market rental price.......etc etc)

Once you know what you are asking for.......then, call the seller and ask (unless it is a listed property - then have an agent represent you)!

Why do you want a lease to own situation?
If it's because you may not qualify for a loan now.....make sure that won't be the case at the end of the lease, or you will be losing your option money.

Make sure you have an attorney write up any such agreement............Good luck!
0 votes Thank Flag Link Tue Oct 25, 2011
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