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Rainmaker
658,498
Sara Wagner
The Woodland Companies - Adams, WI
Stevens Point Rentals

May get a higher offer from a buyer who is unqualified to buy.

Oct 25, 2018 02:53 AM
Ambassador
4,706,783
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Probably not much advantage

Apr 17, 2018 08:26 PM
Rainmaker
583,283
Tony Lewis
RE/MAX of Valencia (Hall of Fame) 30 year Valencia Resident - Valencia, CA
Summit Real Estate Santa Clarita & OC Laguna Nigel

None in our Santa Clarita, California community since prices are either going up or down.  They don't stay flat.  It could be an advantage if the amount paid for the lease option is high and the market goes down and the leasee walks away leaving the money on the table.

Aug 08, 2015 01:49 AM
Rainmaker
3,650,431
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Lease-options are not prevalent in our market.   

Aug 08, 2015 12:33 AM
Rainmaker
1,407,427
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Ivan Carroll If you are referring to a "rent with option', they rarely work out. Most renters don't exercise the option. A "lease purchase" is a little different, there is no option to purchase. It is nothing more than a delayed settlement.

Aug 08, 2015 12:23 AM
Rainmaker
1,046,978
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

This is a joke, right Ivan, are you really saying option to sell? 

Aug 07, 2015 11:06 PM
Ambassador
2,955,254
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

none in my personal experience. I've never had one of those work out for a seller.

Aug 07, 2015 04:31 PM
Rainer
325,637
Virtual Realty Consultants
Virtual Realty Consultants LLC - Wellesley, MA
Making the American Dream a Reality

In a well drafted document, your legal rights are protected and the tax treatment of the option payment and rents can be properly balanced between your needs (not to change the character of the asset) and the buyer's objective to reduce the purchase price of the home by the amount of the payments.  This is of course never going to work in practice because most lenders will apply a standard of "what is a fair market rent compared to total monthly payments?" in computing LTV.

Aug 07, 2015 02:04 PM
Ambassador
3,985,140
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Someone is in the property paying the utilities, maintaining it and keeping the insurance down. It helps cover the nut until a closing can happen.

Aug 07, 2015 11:31 AM
Rainmaker
3,168,664
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

If properties are not selling, and you need to be out, it is great. But when homes are selling at a good pace, no need to lease, just sell. 

Aug 07, 2015 10:54 AM
Ambassador
2,209,455
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

If there is a substantial amount of lease option money at stake that is good for the seller. They can keep the money if the buyer doesn't carry through. 

Aug 07, 2015 10:07 AM
Rainmaker
1,474,204
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Generally speaking, a seller lease with an option will provide the seller with the following benefits:

1. Upfront deposit (non-refundable)

2. High market value sales price

3. High market monthly lease payment

In some cases, a percentage of the monthly payment is applied to the purchase but this is not required.  

 

This is a specialized transaction and should be handled as such.  

Aug 07, 2015 08:20 AM