High prices and large down payments will always prevent buyers from purchasing a home. However, this is where a lease option can work just as well.
Known as a lease with option to purchase, it’s a contract that can help you buy your dream home at a time which is right for you. It can prove to be beneficial to both buyers and sellers if the contract is drafted right.
In the case of buyers, they might find themselves in situations where they have bad credit, are in between jobs or need time to save for a down payment.
This option can be useful if they need more time until their financial situation gets better or even if they aren’t sure whether the neighborhood or the house itself suits their needs.
As for sellers, this type of contract can work well if they’re struggling to sell a property off, have moved or have two mortgages to pay off if they’ve bought a new house before selling the old one off. Not will this bring in regular rent but the tenants will keep the house in good shape especially if they intend to buy it.
Best part: they won’t have to worry about prices dropping since the contract will finalize the price of house when the tenants are ready to buy it, regardless of market conditions.