1518 Common Street, Lake Charles LA
Lease/Purchase options do not come up often in Lake Charles Real Estateand the lease and purchase contract must be negotiated separately.
This 2 bedroom 2 bath remodeled cottage home located at 1518 Common St in Central Lake Charles just sold for $85,000. The buyer negotiated a lease one year ago with the Lake Charles Home Seller, until such time as the Buyer could be approved for a mortgage.
Sometimes Lake Charles Home Buyers may have issues they need to work on in order to obtain a mortgage. These issues can range from raising their credit scores or producing length of time of employment history which could be roadblocks to obtaining a mortgage at the time they find a home. Some Sellers may be in a position to offer a lease of the home to the Buyer with an option to purchase at an agreed upon date.
This is what occurred with this Lake Charles Home Sale, which was a lease/purchase. Lease/purchases do not come up often because most Sellers need to sell their homes to purchase another one. However each seller will have a different circumstance and lease/purchase may be an option.
When executing a lease/purchase it is recommended that the Buyer and Seller also enter into a Purchase Contract and handle inspections up front. By completing the inspection period ahead of time and negotiating repairs during the lease, will remove the inspection contingency in the Louisiana Purchase Contract. At the end of the lease, the buyer is then ready to obtain financing and close on the home.
A deposit is made along with the purchase contract with a projected date of Act of Sale.
In today's Lake Charles Real Estate market, sellers have to weigh their options and be open to a non-traditional 30 day close. Sometimes it works out and at least during the time of the lease, the rent pays the mortgage.
With this particular sale of 1518 Common St., the purchase contract was written at the same time we executed the lease last June in 2011 and we followed the timeline closing on the home purchase June 2012. It worked out that the Seller moved into another home and did not need to sell this home in a 30 day time period, so it was a Win/Win for both Buyer and Seller.