Some people who lease option are very qualified, but strange lending requirements make it impossible for them to get a loan. Others can't get loans because their bad credit indicates that they just don't handle money well. These people are not likely to change.
there are some differences between a rent-to-own and seller financing but those differences can be beneficial for both you and the buyer if done correctly. the problem with today's market is not the pricing of homes but the availability of credit (and consequently the ability to finance the homes). a seller finance gives the buyer ownership and puts them in a position to refinance down the road (which is much easier than the initial purchase financing). this gives the buyer the best chance to pay you off down the road.
in addition, you can get a better sales price than what is available in the market because your house comes with financing already in place, no banks to deal with. you will still want to qualify the buyer based on credit and references. and you'll probably want to do a seller finance note for at least 2 years so that the market will have time to support your sales price with an appraisal.
since there are a lot of different options available with seller financing, most of them in your favor, make sure you work with a realtor or attorney who is experienced with seller financing and can thoroughly explain it to you.
It all depends what your needs are?
Do you want to sell or do you NEED to sell?
If you want to sell it may take a while, if you need to sell then you need to price it at least 5% below market to have a chance at all to sell.
Leasing with an option is something you could do, but in todays market with prices dropping most future buyers are holding off to see how far the market will drop, they dont want to lock in on a price if its going to drop next month.
Your best bet is try to set a price you are comfortable with and have the other party agree, make sure you let a Real Estate Attorney handle the Lease and paper work.
At Miller and Company we offer both a full service real estate department for selling and buying properties and also a property management department for procuring a tenant either on a normal rental agreement or a lease to own agreement. We can market your home both ways and this will give you more options depending on what occurs first - a buyer or a tenant. Feel free to call me and I would be happy to go over your options.
A lease with option may be a good way to allow you out of your current home without the pain of having it sit empty and still making the payments. But there can be quite a few downfalls to a lease or rent to own from the seller side. You need to think of what the end result you want is. Are you going to turn around and buy something else with the proceeds? The problem with a lease to own is that the renters may never make it to that buying stage... there are horror stories of prople that have gone in and made changes while they were in the rental only to not be able to buy the house and not able to return it to the state it was originally in. Being a landlord is not easy and that is the position you are in as the seller on a rent to own. Generally, things are still selling in our market, but you need to listen to what your REALTOR is telling you and price it agressively. Don't get caught up in what it may have been worth 18 months ago. Feel free to contact us if you have more questions about selling or using a Lease with Option to Purchase to sell your home.