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Lease Option your home

 

Why consider a Lease Option?
A Lease Option can be a good option when your home is in an area where:

  • There are not a lot of sales

  • The real estate market is more difficult than average

  • You already have a tenant who wants to purchase

 

There's no compelling reason to consider a lease option if you can get an outright sale on your home within a 'normal' period.

 

What is a Lease Option?
A Lease Option is similar to any type of “option”. It gives the Optionee the right or privilege to do something. In the case of a lease option, it allows the optionee the right to purchase a home at some pre-defined terms.


Benefits of Options for Sellers
Many buyers who use this program are individuals who have had some challenges in the past, i.e. bankruptcy, divorce, medical problems, lost job, etc. OR they might have a new job or haven’t saved enough of a down payment. When these types of situations happen to a person, it can be difficult to get a mortgage due to recent poor credit history or no credit history. This type of situation can be overcome with time. A lease option gives an individual time to repair or correct poor credit and time to create new credit.

 

The most common reason is when a purchaser moves for a job, and the job is different to what they did before in the mortgage provider's eyes. It can easily take 2 years to reestablish earning capacity in a new area.

 

How it works

To enter our AllStarPowerHouse lease option program, buyers must have a minimum of 9% to put down as a deposit on the home in cash. This amount is non-refundable. The sellers and buyers agree a monthly amount in rent, and some of this may be deducted from the eventual sale price.  

 

Steps*

 

  1. Decide what price you want for your home

    1. ​CPO is excellent here - see CPO 

  2. Decide what deposit you want:

    1. We recommend a minimum of 9% that is non-refundable. This is split 3% buyer's agent, 3% seller's agent, and 3% to you. When you sell your home at a later date, there is then no commission payable.

  3. Have buyer's attorney draw up lease option agreement and pay for it

  4. Decide on terms. Do you want them to rent for a year or two years or some other period?

    1. If the credit issue is moving for a job, it can take 2 years to establish earning capability in the new area

 

 

 

*Contact us for full details

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