Now it gets interesting. . . . . .

[1bassoon]

First, you might want to read this post about the house-renting situation that has appeared.

 

Now - we were showing the house today, and who drives up but a woman who saw the house 7 weeks ago.

 

She is very, very interested in doing a lease-purchase, starting as early as Nov. 1. She leaves her #, so we can consider it. Basically, she'd like to buy our home, but won't have the $ until late April.

 

Hmm. . . .thoughts? Dh is going to look at the house-sitting situation this week.

 

The plot thickens!

[lwilliams1922]

I've done many lease option transactions.

 

it can open doors to many buyers when you're in a bind.

Keep in mind that about half of people with lease option can actually buy the property at the end of the term. There are a variety of reasons:

'sure thing' money never came in

couldn't get financed

they just stopped making payments for one reason or another

they move in 6-7 adtl people into the house and you start seeing damage

 

With all that I still do it. I think you just need to go in with your eyes open. AND make sure you get a NON refundable option payment as well as security deposit that is refundable if they don't buy and end up leaving.

 

ie) I have a small house I put a guy in on lease option for 1 yr.

House is worth 75k

I charged him 1500 option payment

500 security deposit

 

at the end of one year he said he was not quite ready to get financing.

i let him stay without raisning the pmts.

Last month he said he was leaving cause his wife was having another baby and they wanted a larger place.

 

I need the cash now so i'm going to sell on the MLS this time.

I'll just lower the price a bit every 2 weeks till i can find a traditional buyer.

 

Are you sure your house it priced right?

Has your agent reviewed the comps with you?

(DH is a Real estate agent full time now)

I am big on lowering the price at regular intervals.

EVEN if it's only $50! Your agent might not like having to do it but it puts your property on the 'hot sheet' again.

 

In most cases it will cause a bunch or agents and buyers to see your house again. It's a numbers game. The more people that see your house the better.

 

you can email me if you'd like more tips to protect yourself in a lease option.

 

HTH

Edited September 28, 2008 by lwilliams1922
sorry for the typos- baby climbing on me

[Danestress]

If she can't get a bank to lend her the money, do you really want to lend it to her yourself? It seems risky. But what to do I know?

[lwilliams1922]

If she can't get a bank to lend her the money, do you really want to lend it to her yourself? It seems risky. But what to do I know?

 

 

yeah banks are tough on everyone these days.

esentially one of the reasons I do it is to help people that need it.

If they pay me ON TIME each month I report it to the lender who can boost thier credit worthyness. I also give them a modest rent credit for each on time payment. ie)every month pmt is made on time I credit them $50 towards closing.

 

bottom line you will have some that work out and some that start creating excuses.