I recommend you offer much higher upfront option money and ask that it be discounted from the price in 5 years only if you buy of course.
That is the problem you are having. I am sure I can find you a property in days that would meet your need, IF you offer a higher up front option money or deposit.
I agree that you probably will need to provide a larger option fee. However, length of option is negotiable, and I've heard of many that go for five years or longer.
Hope that helps.
You contacted us and we provided you with at least
3 homes and 3 different scenarios, including
substantial rent credit towards purchase (up to
100% for several months), and installment pmts.
We have not heard back from you.
As we explained, on a Lease Option /Lease Purchase
agreement , the property comes OFF the market.
Therefore, there must be an incentive for seller to do so.
That is usually the upfront Option Fee.
5 years is too long to lock prices.
And even on a 3 year plan, you need to
think in terms of at least 3% upfront.
There are lease/purchase properties available, however you'll likely run into sellers wanting much more than $5000 for the initial deposit. The $25,000 you're offering if you don't purchase...most sellers willing to lease/purchase would want that up front for such a high priced home. Also, be careful, as there's no guarantee that a home would appraise for $100,000 higher than the asking price. This would possibly turn a seller off as they may view it as creating an unlikely scenario for your loan approval when the time comes.
You should definitely hire a Realtor and put them to work calling all of the listings matching your criteria to see if anyone would be open to a lease/purchase. Many aren't advertising as being willing to lease/purchase, but they may not have thought about it. It never hurts to ask. Also, if possible, offer a larger, non-refundable, deposit.
I'm working with a buyer doing the same thing right now.
Best of luck!
Why did the other purchase fall through? was it another 5 yr lease option deal or straight purchase?
Are you working with an agent to find these?