These days, the real estate markets all around the globe are hurting. Sellers are having problems finding buyer and buyers are having trouble getting mortgages. It is not so easy for real estate agents to make a living right now. The days of simply listing your properties with the expectation to sale quickly are gone. Now is the time to tap into your creative side. By doing so, you will be able to not only survive in today’s real estate market, but you will actually be able to thrive.
How Do Lease Options Work
With lease options, the seller and the buyer come to an agreement on an option that will give the buyer the opportunity to purchase the home within a specific time frame. During this time, the buyer will be leasing the property from the seller. When the time is up, the buyer has to either purchase the property or lose the money paid for the option fee. In addition, during the set time of the option, the seller cannot sell the property to any other buyers.
For The Seller
The seller is able to take advantage of a number of benefits when selling their property on a lease option, such as:
• Beating the competition
• Collecting rent on an otherwise vacant property
• Getting a higher selling price
• Ability to sell even in a down market
• Ability to sell the property, not just rent it
For The Buyer
The buyer also receives a number of advantages when buying a lease option:
• Moving onto the property immediately, even if you do not qualify for a mortgage
• Build credit and save up for a down payment while occupying the property
• No obligation to purchase the property
For The Realtor
Not only are real estate agents still paid for lease options, they even make more money. Once the buyer and the seller come to an agreement on a lease option, the buyer pays the option fee. This money goes to the seller, but when the seller or buyer is represented by an agent, a portion of the realtor’s commission is paid upfront out of the fee. So you see, everyone benefits from lease options.
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Tags: down market, lease options, Property, Property Options, real estate agents, real estate markets
{ 2 comments… read them below or add one }
Hi Sean,
Lease options really do seem like a win, win situation for everyone. I think if you’re interested in getting involved in the real estate markets, this is a way that is fairly low risk.
This is an arguement/debate that I have had with real estate agents. They felt that they were cut out by lease options…and I didn’t know..thanks for clearing the air.