It depends on so many factors and I am assuming that you are a buyer.
I think a lease with an option to buy would be better than a lease to buy agreement. With a lease to buy, you must close on the property at the end of the lease. With a lease with an option, you don't have to buy the property at the end of the lease but have the right to do so at then end of the lease. If the market goes down, you can walk away. If the market goes up, you have locked in a very attractive price.
Hope that helps
Buyers are in the driver seat and can negotiate terms that are favorable for them. To the want-to-be buyer, I would suggest this option type arrangement with minimal (a nickle above nothing??) option money on the table, a pre-determined sales price, and the right to exercise purchase rights any time during the course of the lease.
If the want-to-be buyer feels confident and can qualify for a mortgage, he/she can take action. If prices escalate, the pre-determined purchase price protects the buyer. If prices go down, the buyer doesnâ€™t purchase or renegotiates the purchase price. With minimal option money at risk, a buyer has these choices.
Why would a seller agree to this? If a seller has an empty house and no buyer prospects in sight, the rent payments for a year are better than sitting on the market for sale and becoming more stale.
Bill Brannon, Hilton Head Island, SC
843-384-4111 or 800-267-3285