What is a Lease Option?
Lease option, also known as rent-to-own, lease with option to buy, or rent with option to buy, is a way to buy and sell homes without an immediate conventional mortgage. It gives home buyerswho can't qualify for a mortgage right now the opportunity to get into a home right away while they improve their credit and build up a down payment while living in the home.
It gives home sellers the ability to beat their competition, which we know in these kinds of markets competition is great. Sellers can reach a far greater pool of potential buyers. They will likely be able to sell their home quicker and for a better price. For some sellers it may be the ONLY way they can sell their home in this real estate market.
How Does a Lease Option Work?
A lease option (aka Rent to Own) works like this: The buyer and seller agree to an option which gives the buyer the right to purchase the home during a set period of time. During this option period the buyer leases the home from the seller. By the end of the option the buyer must either purchase the home or forfeit their option fee. While the option is valid the seller may not sell their home to anyone else. For possible lease option properties in the southwest suburbs, click here or here for other rent to own properties in the Chicago metropolitan areas. Feel free to contact me for more information.