Acquiring a property has been a goal for everyone but there are certain drawbacks on why home buyers or even sellers can’t achieve this. But obstacles don’t have to be a reason in order for anyone to get their dream home. There are numerous programs that home buyers can use and one of them is getting into lease option. A lease option is a way to buy and sell homes without an immediate conventional mortgage in which both parties agree to an option that gives the buyer the right to purchase the home from the seller during a set period of time. While this option is valid, the seller may not sell their home to anyone else.
For home buyers, especially for those who can’t qualify for a mortgage, gives them the opportunity to get into a home while they improve their credit and build up a down payment while living in the home. In addition, home buyers also receive a forced savings plan, since part of the part of the lease payment is credited toward the purchase price at the end of the lease option agreement.
For sellers, they generally get market value at today’s prices and relief from paying a mortgage on a vacant property. It allows the seller to beat the competition, receive a higher purchase price, and it allows you to actually sell the home, instead of just renting it out. In addition, if the buyer defaults, the seller does not refund any portion of the lease payment or the option money and may retain the right to charge for specific altercations.
Just keep in mind that before entering into an agreement with a seller, buyers should obtain the advice of a real estate attorney or a professional. Call us today at (281) 317-6640 for a free consultation!