- 1). Agree with the seller on a purchase price.
- 2). Agree on the term of the lease. This will be the maximum length of time you want the opportunity to exercise your option to buy.
- 3). Determine a market value for your monthly rent. (This is the amount a person would pay to simply rent the property.) Then add $25 to $200 per month to be applied toward the future down payment of the home. (This is not a requirement, but it helps you accumulate money for a down payment.)
- 4). Agree upon terms regarding the exercise of the option, such as the escrow period and financing.
- 5). Determine who will pay for inspections, work and warranties when the time comes to complete the purchase.
- 6). Go to your local Board of Realtors Association or real estate company and purchase a lease-option agreement form.
- 7). Handle the transaction as a lease until you are ready to exercise the option.
- 8). Exercise the option in writing.
- 9). Open escrow or contact a real estate attorney to handle the transaction.
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