Home > Blogs > Scott Allen > Scott Allen's (daddyoscott) Blog

It is worth getting involved if a seller wants to 'Lease Option'?

By Scott Allen

Real Estate Agent with Scott Allen Realty

January 25, 2008 04:24 PM

I have a client that is cracking under the weight of payments on brand new, never been lived in homes that he purchased and had built at the end of 2005. Two homes are rented but a third is vacant. The price is $50k less than he paid the builder to put it up. Now he wants to lease option it. Agents that have been in the business for many years say it a bad deal for the agent and the seller. Thoughts?

Comments(5)

Comment

Show All Comments

Sort:

Mary Cioffi

Coldwell Banker Select Real Estate - Minden, NV

GRI, CSP, SRES

Depends on your relationship with the seller. Sometimes we do things that are time consuming and don't make us much or any money if it is a good client. Tenants who get involved in a lease option rarely exercize the option unless the value increases dramatically during the option period, at least in our area. If your seller needs you to do this for him, and you make sure he understands how much work it is, you could have a client for life if you help him out in a difficult time. If you have never done a lease option I would get your broker involved in writing the contract.

Jan 25, 2008 04:34 PM

Karen Anne Stone

New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX

Fort Worth Real Estate

Hi Scott: I know laws vary state to state on lease-options, but there is a Realtor in Portland, Oregon (Todd Clark) who does a lot of these. You might want to contact him and ask for his assistance. I think he is also licensed in Washington State. Here is his Active Rain link. Best of luck to you.

Todd Clark (Realtor), GRI (Washington Co, Beaverton, Oregon)

Jan 25, 2008 04:45 PM

Scott Allen

Scott Allen Realty - Spokane, WA

Thank you Mary,

I really appreciate your advise. I was initially rubbed the wrong way when the client wanted to do this. I didn't look at it through the 'retention' eye.

Jan 25, 2008 04:46 PM

Scott Allen

Scott Allen Realty - Spokane, WA

Thanks for the direction Karen.

Jan 25, 2008 04:48 PM

James Gordon

Sibcy Cline Realtors® - Cincinnati, OH

REALTOR, PBD SFR SRS

Scott a lease option rarely works but a lease purchase may. You have a purchase contract that has a closing date at the end of the lease and a preapproval from a lender with stipulations. The buyer/tenant knows what they need to do to execute the contract and you are just dealing with a delayed closing.

Jan 25, 2008 08:00 PM