Renting to own (also known as a lease-option) provides those not in the position to make an immediate purchase on a home, to settle on something that is right for them- at the right time. Many lease options are the same.
Typically, renters agree to lease the house for a pre-determined amount of time (usually one to three years) with an up-front fee with or without an elevated monthly rent. The potion over market goes into a “fund” that is utilized later as a down payment. They provide the opportunity to lock the price in when the deal is made, with the option to purchase at that price when or before the lease is up.
Timing is everything. Market conditions play a critical factor into finding a lease-option. When the market is steady, it makes it difficult to find these options unless the owner really needs to sell. However, as homes sit on the market longer, sellers begin losing money which causes the window for lease-options to open to potential and future home buyers.
Lease-options typically favor the buyer, but can be complicated to those that are unfamiliar with them. Have a real estate broker and attorney inspect the contract to ensure there is financial protection as well as security. Lease options can be a smart solution to throwing away money when you rent. First time home buyers who play their cards correctly can eliminate conventional loans and get that chance at their dream of homeownership.
Your Local San Diego Real Estate Expert,
Nissou Realty Group
Keller Williams Realty – El Cajon
619-250-4541 | Stephen@StephenNissou.com