BEST ANSWER
Hey there Alexia,
First of all, let me say congrats on looking at other creative ways to buy and sell a house! If we had more opened minded people like you and the homeowners that you mentioned, we could put a large dent into this "housing crisis" everyone keeps talking about. But until people educate themselves instead of relying on traditional buy-and-sell techniques, they're going to keep getting the same results.
I'm usually the Lease-to-Own guy here on Trulia so I'll chime in on this one for you. This is a post that I did describing the Pro's and Con's of Lease-to-Own deals:
http://www.trulia.com/voices/Home_Buying/Is_lease_to_buy_a_g…
Much of what I learned about Lease Option deals I got from educating myself at seminars and by getting myself a mentor who had been there...done that. Two great sources of info are two people I very much respect. The late, great Bob Bruss educated the public on MANY different Real Estate topics. He was kinda like the "Dear Abby" of Real Estate for years with his national columns. Here is the link to his article:
http://leaseoptions.bobbruss.com/leaseoptions/
The other person who knows TONS about Lease-to-Own deals is right in your backyard. Wendy Patton, whom I've met and spoken with (super nice by the way) is the Queen of the Lease Options, as well as a Broker, and she resides in Michigan. Here is a link for her:
http://www.ezinearticles.com/?The-Basics-of-Buying-and-Selli…
As far as the Question: "Do I need a Real Estate Agent or a laywer or both"....... here is MY take on it: If you feel the need to have someone negotiate on your behalf because you feel uneasy with the price or value of the house you're moving into, then you may want to get yourself a Realtor. It IS NOT NECESSARY to have a Realtor in the transaction. Many times, they complicate Lease-to-Own deals and you'll possibly get a better price from the seller because they are not paying any commissions. IT IS, however, in your best interest to retain the services of a KNOWLEGABLE Real Estate Attorney, or Title Company, who is familiar with these transactions. They can hold your hand through all the paperwork and scheduling any necessary items.
Just keep one thing in mind when doing a Lease-to-Own deal.......EVERYTHING IS NEGOTIABLE. The sky's the limit. You can be as creative as you like with these type deals from taking the house "as-is" to having the maintenance OVER $3000 due by the homeowner and everything UNDER $3000 due by you. You can also try to get Rent Credits or even have the purchase price end up being the average of your apprasial and the homeowner's appraisal at the time you're ready to buy (although I would suggest setting the purchase price prior to moving in so there are less complications.) You also may want to record your Option to Purchase at your courthouse so that the homeowner can't sell it out from under you while you're living there. (This will "cloud the title" if anyone tries to do a title search on the house and any Attorney can show you how to do that.)
Whew........time to beathe. Is it lunch time yet? :-) Lastly, if you have ANY questions about ANYTHING in the process or you'd even like me to consult with you to put the lease agreement or option agreement together with you & the homeowner, feel free to shoot me an email or call me. I'm always "for hire". :-)
Best Wishes,
Darin
Lease-to-Own Professional and Independent Consultant
Real Estate Investor
Sat Oct 24 2009, 09:42
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