How Do You Do A Lease-Option On A Home?
A lease-option is an agreement between a buyer and a seller that allows the buyer to lock in the future purchase price, save money for a down payment and buy the property in the future at current prices. It can prove to be a win-win situation. Step 1 Agree with the seller on a purchase price. Step 2 Agree on the term of the lease. This will be the maximum length of time you want the opportunity to exercise your option to buy. Step 3 Determine a market value for your monthly rent. (This is the amount a person would pay to simply rent the property.) Then add $25 to $200 per month to be applied toward the future down payment of the home. (This is not a requirement, but it helps you accumulate money for a down payment.) Step 4 Agree upon terms regarding the exercise of the option, such as the escrow period and financing. Step 5 Determine who will pay for inspections, work and warranties when the time comes to complete the purchase. Step 6 Go to your local Board of Realtors Association or r
