Todd, but you said “Lease options are a great opportunity to buy,” why aren’t they now?”

Real Estate Agent with Realty Pro Oregon, LLC 200311024

I love the power of Activerain, I get lots of business from my blog posts, even ones that are three and a half years old are still getting me calls. But, some of those posts I wrote three years ago don’t apply to today’s real estate market.

Many of those posts were how to use lease options to buy Beaverton real estate, heck, I was using it to purchase and sell real estate. The problem with buying real estate that way today is that you are agreeing to a set price today that may not be the same next year. That is fine when the value is going up, but when you are paying more than market rents, $5,000 or more in option money, if the value of the property drops below the price you agreed to the bank will never finance the property if you are able to fix your credit in that year.

Lease Option homes in Beaverton, Oregon

This leaves the seller with two choices, the first is to lower the price so you can purchase the house at today’s value, the second, and the one the seller will choose every time is, “Sorry, you can’t complete the contract and you are going to have to move out and I’m keeping your option money.”

Then what the seller does is puts the home back on the market as a lease option again, collects another $5,000 or more, and waits the year for the buyer to default on the agreement. It is a no-win situation for a buyer right now when it comes to lease option. What I suggest is doing owner financing and make sure you they are willing to carry the contract at least 10 years or you could be in the very same situation of not being able to refinance and have to give up the home.

If you are looking to buy or sell in Beaverton, Oregon, give us a call at the Friendly Home Team and let us help you with your options and you may be in a home sooner than you think! Many times a buyer who thinks they don’t qualify with our programs can be in a home in less than six months on a traditional loan.

Posted by

Todd Clark (Broker/Owner)
The Friendly Home Team
Realty Pro, Oregon LLC
Phone: (503)524-9494
Fax: (503)746-9573





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 I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard. All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.


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Jim Hale
Eugene Oregon's Best Home Search Website

Buying a house could be seen as a roll of the dice all the time.

In a lease-option the house is betting against you.

Jan 20, 2011 07:16 PM #1
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

That is why it's a good option for the seller, if the option is written correctly, Todd.  If the buyer is willing to take the risk, for whatever reasons they may have, my sellers will grant the lease option.  But, definitely risky for the buyer!

Jan 20, 2011 11:08 PM #2
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert


Classic example of what worked in the past may not work today. Also, credit requirement are a moving target and seem to be getting more strict. Lease option sellers should find a reliable loan officer who specializes in credit repair and help the buyer get on a credit repair plan.

Jan 21, 2011 01:07 AM #3
Ellen Wright Adams
Academy Mortgage.......We are a Equal Housing Lender - Eugene, OR
LoansByEllen- Licensed in Oregon

Things are not the same as they used to be; as #1 comment - could be a roll of the dice!

Jan 24, 2011 09:44 AM #4
The Friendly Home Team
Realty Pro Oregon, LLC - Beaverton, OR
Brokers - Oregon / SW Washington Real Estate

The good news is because of this article I've had 10 people call me this week alone and explain to them why it is so important to just work on your credit and not do a lease option.

Jan 24, 2011 11:34 AM #5
Donna Foerster
HomeSmart Realty Group - Parker, CO
Metro Denver Real Estate Agent

Hi Todd~ We are asking about this "purchasing option" all the time.  Our advice is the same for the buyer or the seller.  It's a risky proposition.

Feb 11, 2011 09:53 AM #6
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