Lease Option Information
A lease option basically means you are leasing or renting a property with
an option to buy it at a future date. The future price of the property should be
fixed at the time the lease-option is signed.
Usually there is
an up-front payment of some amount to purchase the option. That amount can vary.
Sometimes the monthly payment is larger than normal and the excess is used to
purchase the option. In some cases, the option money can be applied toward the
down payment for the later purchase of the home.
Lease-options are
usually done during a slow real estate market. During a hot market, the seller
can simply sell the home in the regular manner.
Benefits for sellers?
- They often get to
sell the house at a higher price than they could sell it in a normal
transaction.
- They can sell the
house during a slow market.
- By being able to
collect a larger monthly payment than they could obtain in a normal lease, the
property "cash-flows" and they don't have to come up with money out of their own
pocket each month to make the mortgage payment.
- They get some
up-front option money and when the buyer cannot exercise the option, they get to
keep it.
Risks for buyers?
Individuals who attempt to buy homes on a lease-option rarely end up
buying the home. This often has to do with the reason they try to buy on a
lease-option. They usually cannot qualify for a home loan and expect that they
will be able to qualify after a period of time. Later, they find they still
cannot qualify - whether it is because of poor credit, lack of income
(documentable income), or lack of savings to have a large enough down payment.
If this happens, you lose any option money you might have paid up front or as
part of your monthly payment.
Bold Real Estate
Group has an extensive rental
department. We offer properties of different price ranges, lifestyle golf
communities, 55+ active communities, including the white sandy beaches of
Hutchinson Island, Jensen Beach, Vero Beach and beautiful Palm Beach areas.
Our rental team acts as a liaison between the landlord and the tenant
providing extensive services including but not limited to finding tenants,
properly screening tenants, negotiating leases, etc.
Whether you are
relocating and in need of a short, seasonal, daily or annual rental property or
looking to rent out your investment property please complete form below to
contact Bold Real Estate
Group for your free
consultation.