Today's real estate market requires an alternative way of selling a house because traditional ways aren't working. By answering the question: What is a Lease Option?, you'll find a sure fired way to sell in today's market.

Real estate markets across the country are in the dumps right now. Sellers can't sell and buyers can't get mortgages. Real estate agents are finding it difficult earning a living. Gone are the days of expecting it to sell with minimal effort. It's time to get creative by learning what is a lease option!

What is a Lease Option?
Lease options are a way of buying and selling homes without an immediate conventional mortgage. It puts buyers who can't qualify for a mortgage today into a home right away while they improve their credit and build up a down payment. It gives sellers the ability to beat their competition - which there is a whole lot of these days. With a lease option, sellers reach a much larger pool of potential buyers. They can expect to sell their home faster and for a better price. For many sellers it's the ONLY way they will sell their home in this market.

The challenge for realtors, buyers, and sellers alike is having an education about what is a lease option.

Here's how a lease option works. The buyer and seller agree to an option that giving buyers the right to purchase within a set period of time. During this option period, the buyer leases the home. By the end of the option, the buyer either purchases the home or forfeits their option fee. While the option is valid, the seller cannot sell to anyone else. In a nutshell, that answers what is a lease option.

Seller Advantages When They Understand What is a Lease Option?

This is what sellers need to understand when the question of what is a lease option is addressed.

1. Allows them to beat their competition.
2. Sellers collect rent while the house would otherwise sit vacant.
3. They will most likely receive a higher purchase price.
4. The can sell their home in a down market when few traditional sellers are able to.
5. Allows the seller to actually sell their home instead of just renting it.

Advantages for Agents When They Understand What is a Lease Option?
This is what agents need to understand when the question of what is a lease option is addressed.

Selling on a lease option isn't as ideal as a conventional sale where you receive your full commission up front but it's a whole lot better than:

1. Turning away prospective buyers who can't currently qualify for a mortgage because you can't explain what is a lease option.
2. Having your seller rent their home because it won't sell and you only get a tiny rental commission if anything. Knowing what is a lease option changes the game.
3. Losing a listing because the seller blames you for their home not selling.

Once you know what is a lease option, you still receive your full commission - part of it upfront out of the tenant-buyer's option fee and the remainder when they purchase the home.

Obviously selling on a lease option is not the first choice for sellers or agents. Whenever possible we want to sell to conventional buyers. However, when that isn't working this is a fantastic alternative.

For more information about what is a lease option, check out my book, Rent-to-Sell, a step by step hands-on guide to selling your home as a rent to own.

This entry was posted on Tuesday, February 28th, 2012 at 12:44 pm and is filed under Cooperative/Wholesale Lease Options, Lease Option Training / Rent-to-Own Training for Home Buyers, Lease Option Training / Rent-to-Own Training for Home Buyers, Lease Option Training / Rent-to-Own Training for Home Sellers, Lease Option Training / Rent-to-Own Training for Home Sellers, Lease Option Training / Rent-to-Own Training for Investors, Lease Option Training / Rent-to-Own Training for Investors, Lease options for real estate agents. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.