Cape Coral Real Estate : Cape Coral Lease Option

If you have been waiting on the sidelines to see what the local Cape Coral real estate market may do & you are not in a position to start making offers to buy, a lease option may fit your needs well. If you are not familiar with a lease option, it is fairly easy to understand. I'm going to take you into the lease option now.

First of all, there is a considerable down payment required. Many sellers are requesting 3-5% down (of the purchase price) but we have seen many negotiate lower amounts. This deposit will go towards the purchase price or down payment and/or closing costs when the home is purchased at the end of the lease option term. If you do not follow through & purchase the home, the seller keeps this deposit. It is NON-REFUNDABLE.

The purchase price is locked in at the time of signing the lease option. No one can predict for sure what the house will appraise at in the next year but this is the price regardless of whether the market goes down or up considerably.

Monthly payment. The monthly payment is going to be more than average rents but less than a normal mortgage payment in most cases. Let's just assume the house is $149,900. A mortgage payment with PI (principal & interest) would be around  $1250/month. Renting the same house would be around $900/month. The lease option price is $1100/month with $100 of that being credited each month to the purchase price. Again, if you do not purchase the home at the end of the term all monies paid are non-refundable.

What do you have to do to qualify for a lease option? Well, it is based upon the seller's criteria. Most of my sellers like to see a credit history, rental history &  verified employment. Some do not ask for these things though. Most sellers in this current market also understand that many have lost their own homes due to foreclosure or short sale and will still work with them.

How else does this plan differ from a rental lease? Well, you would be acting as the home owner. You'd be responsible for repairs & upkeep on the home. The seller is NOT your landlord. They are not responsible for thse items. Since you will be buying the house at the end of the term it would behoove you to take excellent care of it regardless.

If you'd like to see properties that are available on a lease with option to buy contact us below and we'll be glad to provide you with more information.