Sometimes, acting as the buyer's agent for one of
my Rutherford clients, I wind up dealing
on their behalf with what can be frustrating financial roadblocks. It's
part of the service all buyer's agents bring to the table…and in recent
years it's become a more common situation.
There can be any number of reasons that trigger a
financial snag. A client's down payment funds might be tied up due to
a business-related delay, some other ongoing real estate transaction
can hit a scheduling snafu, or it may simply be that an unexpected credit
ding has surfaced which can't be solved within the necessary timeframe.
No matter what the reason, when a client is on track
to buy a home -- but also needs to buy time -- alternate avenues need
to be explored. A lease option can sometimes provide a workable answer.
Lease options are agreements which allow a tenant
to pay an option fee for the right to purchase a home. The key provision
is the agreed-upon price which will be offered at the end of the option
period. The lease option period is negotiated; it's typically one to
three years. During that time, the tenant makes rent payments, and often
an additional sum which will serve as part of the down payment if the
tenant purchases the home.
Since a lease option is a legally-binding contract,
unless the buyer is a real estate attorney or otherwise very experienced
in contract law, it is common to engage an experienced Rutherford buyer's agent to help negotiate the terms. When
arriving at a completed lease option, the parties are essentially writing
two contracts in one: a lease and a sales agreement. To settle on the
key element -- the purchase price -- a knowledgeable buyer's agent will
prepare a comparable market analysis to determine for how much a similar
house costs in the same neighborhood. Adjustments need to be made to
fix an agreeable price for a house that won't be sold for two or three
years - a ticklish task for anyone without years of market experience.
If you find yourself thinking about exploring the
lease option alternative for the first time, an experienced Rutherford buyer's agent will help
you evaluate the terms. I hope you will consider me your if you're thinking
of buying or selling a home - even if it's a couple years down the line!
Search for Rutherford Homes For Sale and Rutherford Listings Now!
Search for Rutherford Homes For Sale and Rutherford Listings Now!