Lease to Own a Home
Now is not a good time to move into a lease option or a "lease to own" home. Prices are falling and any "additional" equity payments you make will be reduced by the value of the property falling. The only time a lease option is a good idea is in a rising market.
About 18 months ago we "sold" a home on a lease purchase. The agreed upon sales price was $269,900. It's time to consummate the sale and the appraisal just came in at $240,000. Almost $30,000 below the agreed price. The buyer can't get a loan because the bank will not loan the required amount. The buyer has put $10,000 of improvements into the property. He most likely will loose that $10,000.
Either the seller will have to come down in price or the buyer will have to come up with thousands of dollars more down payment to get a loan. The seller can't come down because he owes more than $240,000. A buyer is better off renting in this market. Or there are still some zero down loans available if you have income and good credit.
If you’re serious about buying Bend Oregon real estate you should sign up for Jim’s free New Listing Notification Service or call or e-mail Jim today. Jim Johnson is a Certified Residential Specialist and has been selling quality homes in Bend Oregon since 1981. Call 541-389-4511 or see his web site to search the MLS - Bend Oregon Real Estate Expert. Jim is licensed by the State of Oregon as the Principal Broker for Bend Oregon Real Estate Expert.