OfflineFolks, I have a dilemma. I own a house that I rent and would like to lease option it. Because of all the refinancing going on in the neighborhood, and because of the depressed housing market,homes are appraising about 10% below their previous valves. This makes it hard for me to ask what I once could. So how can I find someone to lease w/option and set the price fair for me. I just find it confusing when I try to come up with a price that the home may no longer appraise for and I'm not willing to let it go cheap to a potential renter/buyer. Hope someone can decipher my question. How are others who are stuck with homes pricing them for lease and future purchase. I may be a motivated seller in the near future. I owe 50000 on a house that may appraise for 60000.
You can set the option well above current market price because the rent-to-own person isn't actually going to buy until that future date. Most buyers in a lease/option deal understand they may pay full market or even a premium because you are offering terms they couldn't get any place else. The risk to you will come at the end of option period if the property doesn't appraise for enough to allow the buyer to refinance and pay you off. But what have you lost? You got option consideration, monthly payments for two years and if necessary you could negotiate the purchase price at the time the option expires.
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