Home buyers choose this way to buy their home when they cannot qualify for a home because:
- They have poor credit
- They do not have enough down payment
- They do not have enough time on their job
- They are over extended in how many real estate bank loans they currently have
Option Rights, just as the name denotes, gives the future Buyer the “Option” to buy, or not to buy. However, the Seller in this transaction must sell. It is what is called a, “Unilateral” agreement, because one party, the Seller, must perform, while the other party, the Buyer, does not have to perform (they do not have to buy).
Option Rights allow Buyers the legal right to control property without ownership.
They allow the Buyer the right to lock in a purchase price in today’s market, so if the home were to go up in value, the Seller could not raise the price and make the Buyer pay more for the home.
Other valuable consideration that the Buyer may negotiate is what is called, “Buyer Credits” or “Rent Credits” where a portion of the rent paid each month is applied towards the purchase price, bringing down the total amount owed during the lease term, and thus, if and when the Buyer decides to exercise her Option to buy the home, she would have essentially reduced the total amount owed at the time of the actual purchase.
Things to Consider:
- Try to negotiate that your Option be assignable. Since the Option down is non-refundable, a smart way to protect your money in the event you cannot ultimately buy the home during, or at the end of the lease term, you can always try to assign your Option right interests to someone else.
- Ensure the home you are buying is not in foreclosure, or about to be.
- Make sure the home owner is on-time with their payments by requesting “Bank Authorization” and checking to see for yourself.
- Negotiate that all payments you make each month are controlled by you, not the homeowner, meaning that you are able to see that each payment is actually being applied towards the mortgage payment like you are being led to believe it is. This will ensure you protect your money and know the home will not be foreclosed on.
To see our, "Rent to Own" homes now, click here. Achieve home ownership by first controlling real estate, locking in favorable market pricing, and qualify for the home later once you've fixed things like your credit, saved up for your down, and have enough time on your job.
Russell & Diana de la Peña
P.s. You do not need good credit, a big down payment, or years on your job to qualify for our property. In fact, there are no credit checks. We even help you fix your credit (for free) after you've acquired one of our, "Rent-to-Own" homes. It's a great deal. See homes now.