Can anyone give me a rough idea regarding the typical terms for a residential property lease option purchase (I am the seller)? The house I am selling has a FMV of $350K, and a straight rental rate (based on comps) of $1800 - $2000 a month.
1)% Rent money towards purchase price if option excercised.
2) What should the purchase amount be based on?
3) Monthly total payment from lessor?
3) The house was/is being sold using a licensed RE agent; is she entitled to anything when the lease is signed? How about if the option to purchase is excercised?
5) Is just a credit check sufficient? Do you need a backround check? Do you need copies of paychecks etc.?
1)% Rent money towards purchase price if option excercised.
ANSWER: Depends on what you work out with your Tb’er. Some people do 25% and others do 50-100 depending on payments.
What should the purchase amount be based on?
ANSWER: I do 10% above FMV depending on the type of market I am in. The price is locked for one year. Then the price adjusts 1/2% per month or depending on how I feel.
Monthly total payment from lessor?
ANSWER: Usually 1% for moderate price homes.
The house was/is being sold using a licensed RE agent; is she entitled to anything when the lease is signed?
How about if the option to purchase is excercised?
ANSWER: What does your listing agreement say? It will tell how and how much the Realtor will be paid.
Is just a credit check sufficient?
ANSWER Yes I do credit checks.
Do you need a backround check?
ANSWER: Yes I do Background checks.
Do you need copies of paychecks etc.?
ANSWER: Yes I get copies of paychecks, Bank Statements, W’2’s Driver’s License, SS card.