Many buyers want to avoid a permanent living arrangement where they realize they’re unhappy, and lease options are a solution for these
buyers. During the contract period, you have a chance to try out the
home and ensure that you want to stay in residence for the long term,
following through with purchasing the property. For other buyers, lease
options allow them the time to save for a downpayment and get their
creditworthiness in order while enjoying the perks of homeownership.
A lease option gives you the right to buy a property, but not the obligation, given you live up to your end of the agreement. In addition,
the owner agrees that they won’t sell the property to any other
interested party during the contract term and won’t pursue you legally
if you decide not to buy at the end of the agreement.
It’s best to go into such a significant financial transaction with your eyes wide open to the agreement’s limitations. Typically between
one to a three-year legal contract, it’s best to enter into the
arrangement with realistic expectations about how lease options work. So
read on to explore our buyer’s guide to navigating the world of lease
option properties in Belleville.
Sales Price
Owners can only estimate the property’s future market value when determining the sales price
of lease option properties in Belleville, with the price stated in the agreement. As a result, the buyers agree to a purchase price above
the current market value because the owner is taking a risk they’ll be
selling at below market value at the end of the agreement.
Rental Rates
Owners typically charge a premium and a higher than average monthly rent for their lease option properties in Belleville. The premium is
typically applied as a credit towards the downpayment at the end of the
agreement. Working with a lender will help you understand if the credit
will be acceptable under their mortgage loan terms.
Finding Opportunity
Often buyers must seek potential lease option properties in Belleville and reach out to the owners, creating the opportunity. When
searching for potential lease option properties, you will want to look
for homes lingering on the market. These sellers may be more motivated
and, with the right approach, open to other methods to relieve
themselves of the responsibilities and costs associated with holding the
property.
Mutual Confidence
Naturally, owners that sell lease option properties in Belleville will have to run a background and credit check as they would with any
tenant. In this case, however, as the buyer, you will want to ensure
that the seller isn’t about to lose the property, so you will need to
research the title, have an inspection and appraisal, and screen the
seller, asking for a credit check and their tax records.
Cardinal Creek Properties
At Cardinal Creek Properties, we can help you over any hurdles standing in your way, whether you are getting your financial ducks in a
row or just want to ensure you are happy for the long term with the home
you purchase. The professional home buyers at Cardinal Creek Properties
can help you locate the perfect opportunity without charging you the
high commissions of a real estate agent. The professional home buyers at
Cardinal Creek Properties will save you money and time; we make the
process easy and guide you step by step. And don’t forget to ask about
our current inventory of the best lease option properties available in
Belleville.
If you are a buyer ready for homeownership, let the professional home buyers at Cardinal Creek Properties help you maneuver the realm of
lease option properties in Belleville. Call Cardinal Creek Properties at (314) 467-8137.
