Lease option strategy is used for selling properties in a hard market where there are only a few qualified buyers. If the property is easy to sell then it’ll be more convenient for you to sell the property in the conventional way wherein the buyer pays you cash for the purchase.
Benefits of Lease Homes with Option to Buy
- It is a good way for you to sell a vacant property at market value on that you’re paying a mortgage.
- It helps a buyer with a poor/ no credit history or down payment to buy a home. Such buyers will not qualify for a home loan from a bank. These buyers get the benefits of home ownership.
- Although the client will be making higher lease payments that may exceed market rent they will be making payments towards their down payment.
- The buyer gets the benefit of capital appreciation on the property during the period of home lease to buy.
- For the buyers who lack self discipline will have the benefit a forced savings plan because part of the rent is credited toward the purchase price of the house which is adjusted at the end of the lease possibility agreement.
- As opposed to a normal tenant a home lease to buy renter pays won’t only look after the property as his own but can often make improvements to the house.
- A lease with option to buy tenant will also pay all the outgoings on the property which will lighten your financial burden and risk considerably.
- If the lease option purchaser defaults, you as a seller are not obliged don’t refund any portion of the lease payments or the option money unless and otherwise it’s specified in the contract. You will also retain the right to sue purchaser for breach of the agreement.