Starting Point Home Solutions is familiar with the lease option process, which is a document that varies from state to state. Buyers should seek the advice of a professional before entering an agreement with a seller. Starting Point Home Solutions can guide you through process that can be beneficial if you are looking to eventually buy a home.
Elizabeth Weintraub discusses the basics of a lease option. The buyer pays a set amount to the seller in order to purchase the property at a later date. The buyer and seller can negotiate a price at the beginning of the agreement or the buyer can also pay market price once the lease option has expired. It is more beneficial to the buyer to determine a purchase price at the beginning of the agreement.
The property is leased for a predetermined amount. The length of the lease option usually lasts one to three years. A portion of the rent goes towards the purchase of the property. The buyer does not have to buy the property at the end of the lease option. If they do not buy the property, the buyer must move out.
Starting Point Home Solutions understands that not all people looking to buy are able to afford a traditional mortgage. A lease to own option can be an alternative option. Starting Point Home Solutions can explain the advantages of this option and assist with any challenges that may prevent you from buying a home.
There are several important points to consider when a seller is structuring a lease option agreement. Elizabeth Smith suggests documenting everything in writing. Have an attorney write the agreement in order to make the agreement specific to your situation. This will make it easier for the buyer and seller to begin the mortgage process when the lease option has ended.
Smith suggests making the lease option term for no more than one year. This will make it clear the agreement is a lease instead of a mortgage. The seller should also take a security deposit to make it obvious the agreement is a lease option. Factor repair costs in to the rent. It will be beneficial in the end if the tenant does not neglect repairs. Give full disclosure and be open about the lease option process. Make sure the buyer knows all terms and conditions of the agreement. If you do not want to ultimately sell the property, do not set up a lease option.
Starting Point Home Solutions can effectively walk you through a lease option. Whatever your situation may be, they can explain the best options for you. They take pride in their work and take their experience to ensure your real estate situation has the best possible outcome.