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In today's market, buyers and renters have options due to the amount of properties on the local MLS.
If you do not have a down payment to purchase a home or condo or lack a sufficient credit score you may want to consider a Lease to Own contract.
This will give you the flexibility to make a slightly higher monthly payment and a portion of your rent goes to your down payment on the home or condo. This means after a set period of time you will have saved enough for the down payment and you have the option to execute the sale at a preset sales price.
- Agree with the seller on a purchase price.
- 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.
- 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.)
- Agree upon terms regarding the exercise of the option, such as the escrow period and financing.
- Determine who will pay for inspections, work and warranties when the time comes to complete the purchase.
- Go to your local Board of Realtors Association or real estate company and purchase a lease-option agreement form.
- Handle the transaction as a lease until you are ready to exercise the option.
- Exercise the option in writing.
- Open escrow or contact a real estate attorney to handle the transaction.
Sound good or have questions?
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Las Vegas, NV 89118
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