We are looking for a home 4br 2.5 ba , 2500sf , we woud like to to a lease with option to purchase for the right home. Also have a home to list

Asked by Twanna Irvin, Jackson, TN Sun Sep 22, 2013

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Debra (Debbi…, Agent, Livingston, NJ
Sun Sep 22, 2013
Please make sure you fully understand what a "lease with the option to buy" agreement really entails.
Most consumers don't.

If you think it simply means you pay rent, and then IF you decide to buy the house, all the rent you paid in is applied to the purchase, think again!

That is not how it works.

First of all - you will have an extremely limited number of homes, if any, from which to choose. Most sellers who want to sell, and can sell, sell NOW not later on.

The sale price will be decided now, not later - do you really want to be locked into a price for a year or 2 down the road?
You also have to hope the seller stays current with his mortgage and isn't in any kind of financial distress.

But here is the biggest news........You will be expected to have an upfront "option" money deposit. In addition, you may be asked to pay an amount of rent OVER and above the normal rent.
Only that overage would be applied to the sale, not the full amount you paid in as rent.

And, here is the scary part- if you DO NOT buy the home at the end of the lease term for ANY reason.(let's say your house doesn't sell, and you cannot qualify for a loan).............you forfeit...LOSE.... that all that option money and any rent overage you paid in.

Let me repeat that - you LOSE your money!

So......if you still want to consider this arrangement, and you do not qualify now for a mortgage, you better make darn sure you will qualify later on, or you will stand to lose a lot of money. The fact that you have a house to sell adds another layer of possible complications. What if you get less for your house than you're counting on.....what if it doesn't sell?

My advice is to rent for now while you get your financial house in order............then buy when you have a full selection or homes, your house has sold, and can buy in the normal manner, without all that risk hanging over your head..

Whatever you do, if you decide to go that route - make sure an attorney looks over any kind of rent-option agreement before signing it! Make sure the house has to appraise out!

Best wishes.........
1 vote
Lease options are VERY risky. Here is Colorado they require an attorney to draw up the contract. What if the seller quits making payments and loses the house? You have to move out and lose every penny you put into it.
Debbie explained it very clearly!
Flag Mon Oct 28, 2013
haha..... thanks Bradley!!
Flag Mon Sep 23, 2013
^^What she said^^
Great answer Debbie.
Flag Mon Sep 23, 2013
Gerry Neese, Agent, Jackson, TN
Sat Jan 11, 2014
I deal with several home owners that would be glad to consider a lease/purchase understanding that this is a purchase contract with a lease period preceding it.
0 votes
Brenda Dilla…, Home Seller, Jackson, TN
Tue Sep 24, 2013
I will be listing my house in the 38305 area next week. It is a 4/2.5, 2660 sf. . This home is a split level with two short stairs, lots of living space, fireplace insert, three entrances, a carport that will accommodate up to 4 cars, a fenced in back yard with blueberry bush, muscadine vine (all produce), a covered patio for entertaining. Call Sue Harris, Realtor
0 votes
Randy Pascha…, Agent, Jackson, TN
Mon Sep 23, 2013
If you would like I could send out an email to all the realtors here in Jackson and find out which homes are available for lease purchase then email those to you. That would allow you to view the options available to you to help with your decision.
Let me know if thus answer is satisfactory!
Randy
0 votes
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