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Wednesday, March 28, 2012

Home Buyer Tips - What to do if you can't buy right now? A Lease Purchase Option or Just Lease….

I am not an attorney or investment adviser.  I am not a used car salesman.

The first sentence means I do not offer legal or tax advice here.  Call a qualified lawyer or CPA.

The second sentence refers to a recent post where I made the comment "Don't ask a car salesman if you need a new car."   

When it comes to real estate there are usually two main is labeled buy and the other rent.  In between is a pathway called the lease purchase option or option to purchase.

I am not a big fan of the lease-purchase option.  Most often I get calls about these from buyers who can not obtain financing right now.

I will admit a lease-purchase option can be good if the option locks in a price for a future purchase and home prices escalate during the option term.

Any seller considering taking their home off the market with a purchase option agreement should require money up front to make sure everyone is serious. 

Likewise, any buyer who is serious about a purchase option should expect to put money down.  After all, a lease purchase without down payment or option money is called... RENTING.

As for my opinion....a person should either buy if they can or lease. 

As a Florida licensed real estate broker associate I do not prepare contracts or offer advice on contracts.  I recommend a real estate attorney get involved.

Need a real estate agent in Brevard County, Florida?  Email me.

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