Lease Option is becoming an increasingly popular vehicle to sell and purchase real estate here in Michigan. I am seeing more and more listings for lease option homes or more commonly known as, "Rent To Own". My company represents Builders who offer this program, which is a relatively new concept for builders. Builders are becoming very creative these days and some are offering Lease Option Homes to help move their new construction inventory. With this program, they are asking and getting market price for the homes. Both sellers and buyers can benefit from a well written Lease Option Agreement. (Have an attorney review all documents before entering into a Lease Option Agreement).
Some of the benefits to each party in the agreement are;
The seller can cover the mortgage for the term of the lease with the rental payments by getting market price or more for the rental amount and market price for the pre-determined purchase price. The seller can also require a Non-Refundable Option Fee, not a Security Deposit. Credit this back at closing to the buyer. This will be a great incentive for the renter to exercise their Option at the end of the lease.
The renter can live in the home they want to purchase, have time to improve their credit, save for their down payment and receive a rent credit every month towards the down payment and/or closing cost or they may decide not to exercise their option and move on. If they purchase, they will also receive the non-refundable option fee back at closing, depending on how the agreement is written. The credits can be substantial to the buyer.
Lease Option may not work for everyone, but I believe it is a very creative solution for some in this crazy housing market!
Filed under: Real Estate, Market Conditions, For Sale, For Rent/Lease, Announcements, Industry, Finances, Buyer Information, Seller Information, lease option, buying, rent to own, selling, solutions, 1st time buyer
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Pinehurst, Trenton - We invite everyone to visit our open house at 5605 Pinehurst Dr on January 31 from 12:00 PM to 5:00 PM.
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Pinehurst, Trenton - We invite everyone to visit our open house at 5617 Pinehurst on January 31 from 12:00 PM to 5:00 PM.
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3 BEDROOM, 3 FULL BATH CONDO!
• 1,691 sq. ft., 3 bath, 3 bdrm 2 story - 
MLS® $1,600 Monthly - LEASE OPTION or LEASE
Pinehurst, Trenton - TRENTON*****PINEHURST CONDOMINIUMS****LEASE OR LEASE OPTION this ALMOST BRAND NEW 3 bedroom Townhome with 3 full baths. 1st floor master with large bath and oversized walk-in closet. 3rd bedroom is like a private suite located Oon 2nd level with private bath. Soaring ceilings, dining room and breakfast nook, convenient 1st floor laundry most kitchen appliances and 2 eat at bar areas. This is a great opportunity for the first time buyer or if you are down sizing. Call today!
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Pinehurst, Trenton - Announcing a rent/lease reduction on 5617 Pinehurst, a 1,691 sq. ft., 3 bath, 3 bdrm 2 story. Now MLS® $1,600 Monthly - LEASE OPTION or LEASE.
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FINISHED BASEMENT
• 1,000 sq. ft., 2 bath, 3 bdrm single story - MLS® $75,000 - SHORT SALE BARGAIN!
Frischkorns Grand Dale Gardens Subdivision, Redford - CHECK THIS OUT! SQUEAKY CLEAN, WELL MAINTAINED BRICK RANCH. MOST MAJOR COMPONANTS UPDATED. NEUTRAL COLORS THROUGH OUT, AWESOME BASEMENT FINISHED IN NEUTRAL COLORS AND RECESSED LIGHTS. ALL INFO DEEMED CORRECT AND TO BE VERIFIED BY BA. SUBJECT TO 3RD PARTY APPROVAL. COMM. TO BE APPROVED BY 3RD PARTY. $1,000 EMD TO BE HELD BY LISTING BROKER.
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SHOWS LIKE A MODEL
• 1,800 sq. ft., 2 bath, 2 bdrm 3 story "WALK-OUT TO LAKE" - MLS® $199,900 - BEST VALUE IN BAYSHORE!
Bayshore North, Van Buren Township - SHOWS LIKE A MODEL. PERFECT LOCATION ON THE LAKE WITH A VIEW FROM EVERY FLOOR! EXTREMLY WELL MAINTAINED, CLEAN AND LOOKING FOR A NEW OWNER TO ENJOY LAKE LIVING. NEW FURNACE IN 2001, HWT 2006, NEW ROOF 2002, NEW DOORWALL PANES THROUGH-OUT AND MOST WINDOW PANES REPLACED. BEST PARKING LOCATION FOR ADDITIONAL CARS. ENJOY YOUR VERY OWN DEEDED BOAT DOCK, BEST VALUE AT BAYSHORE. CALL TODAY!
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Northville Ridge, Northville - Announcing a price reduction on 16442 Mulberry Way, a 2,455 sq. ft., 2 bath, 4 bdrm 2 story. Now MLS® $284,900 - JUST REDUCED!.
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Northville Ridge, Northville - Announcing a price reduction on 16521 Mulberry Way, a 2,780 sq. ft., 2 bath, 4 bdrm 2 story. Now MLS® $294,900 - JUST REDUCED!.
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Hampton Square, Brownstown Township - Announcing a price reduction on 19360 Heiden Dr, a 1,575 sq. ft., 2 bath, 2 bdrm single story "WITH LOFT". Now MLS® $147,900 - JUST REDUCED!.
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Note that this information is outdated.
The Housing Stimulus Bill: $7,500 for Homebuyers By Lawrence Yun, Chief Economist The Housing Stimulus Bill passed in the Senate over the weekend. President Bush has said he will sign it into law. That means housing recovery is on its way. There are many components in the bill, but the one that I am most excited about is the homebuyer tax credit. Up to $7,500 will be given to first-time purchasers as they file their income tax returns. The amount gets phased out above a certain income level and is to be no more than 10 percent of the home purchased price - though most people will qualify for the full amount. This is almost like a "credit," which means that the amount is equivalent to cash on tax returns. Example: you do your normal tax return and find that you owe $1,000 next year. You then apply the $7,500 credit and the government will send you a tax refund check for $6,500. This credit has a time window and will not be available from July 2, 2009 on. It is not a full credit because you do have to pay back this amount over a 15 year time period from the second year. The payback provisions also have many conditions, which we are further researching. But in the worst case, you would need to pay back the $7,500 over a 15 year time span from 2010. So in your 2010 tax filing, you would need to pay $500. Even in the worst case scenario of paying back the tax credit fully over a 15 year time span, the tax credit is still a huge benefit to homebuyers. First, money today is worth more than money tomorrow - far more than money 15 years from now. Money loses value over time due to inflation and from the interest income one would receive on that money before fully paying it back. A smart consumer could pay off a high-interest credit card debt with the tax credit money and that would be the best winning strategy.
Hampton Square, Brownstown Township - Announcing a price reduction on 25762 Veronica Dr, a 1,601 sq. ft., 2 bath, 2 bdrm 1 1/2 story "WITH LOFT". Now MLS® $149,900 - NEW, LOWER PRICE!.
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Walden Woods, Van Buren Township - Announcing a price reduction on 9352 Walden, a 2,617 sq. ft., 2 bath, 4 bdrm 2 story. Now MLS® $289,000 - GORGEOUS BUILDERS MODEL.
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Pinehurst, Trenton - Announcing a price reduction on 5605 Pinehurst Dr, a 1,536 sq. ft., 2 bath, 2 bdrm 2 story. Now MLS® $139,900 - BUILDER CLOSE-OUT PRICING.
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Pinehurst, Trenton - Announcing a price reduction on 5621 Pinehurst, a 1,543 sq. ft., 2 bath, 2 bdrm ranch. Now MLS® $165,000 - BUILDER CLOSE-OUT PRICING.
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