You are here:
- Home
- Real Estate
- Home Buying/Selling
- Buying or Selling a Home
- Lease Purchase Nightmare
Buying or Selling a Home/Lease Purchase Nightmare
Advertisement
Question
Hi,
I'm in the state of texas and my wife and i recently signed a lease purchase agreement that involved signing both a lease agreement, and a seperate purchase contract on the house. We dove into this without really doing the proper research and after a few months we've realized that the price on the purchase agreement is approx. $20-30k higher than what the home is actually worth. We'll be getting an appraisal very soon, but I would like to know if we will be held to the lease agreement terms if the seller is unwilling to come down on the selling price. the way i understand it, it will be impossible to get financed for anything more than what the home is worth, so we're in a lose/lose situation. What could happen if we decide to back out of the entire deal and buy a house elsewhere?
Thank you in advance for your help.
Hi Tony,
I don't know exactly what your contract reads with the seller on the property in question... keep in mind that a lease option, in general will cost more than a straight purchase... you are asking the seller to wait out the selling time frame... nothing comes for free and in a lease option you are not really in the drivers seat, hence you had to have the lease in the first place... with money as cheap as it is right now can I ask why you are leasing? is your credit not up to par? too much debt? some reason?
I don't know the actual price either and $30,000 on a $700,000 is not as high a % as $30,000 on a $130,000 property... so all things need to be accounted for...
I as a seller would not back down, because you as the buyer made the contract and should have done your due diligence before you had me the seller take my home off the market for you to purchase...
Where was your agent representative when you got involved in this?
My understanding of lease options, is you loose the extra monies you have put towards the lease and the seller looses time on the market... in a down trending market the seller is really out perhaps more than you...
This is why having a representative - advocate on your side is so important!
Good luck...
Related Articles
Answers by Expert:
- Dick Dennis
- Jessica Bryan
- liznarr
- Hans Weber, Licensed Broker Associate
- Sue Bernstein
- Karyn Foley
- Dottie Worthington
- Jim Root
- Russel Ray
- Connie Wildasinn-Broker,GRI,RealtorŪ
- Todd C. Menard
- Diann Tonnesen
- John Hendricks
- Jay Denit
- Matt Heisler
- Lisa Webber
- John
- Laurie Stephenson
- Marvin G. Bobbitt, III
- Nori J. Muster
- Sharon Huneycutt, Realtor, Associate Broker, GRI, e-PRO
- CJ Brasiel
- Jeff Kessler
- Kathryn Hisert
- Emily
- Ted Lewis
- Kerrin Kostelic, FL Broker Associate, GRI, AHWD
- Tim Norris
Connie Wildasinn-Broker,GRI,RealtorŪ
Expertise
Broker,GRI,RealtorŪ, Investor since 1979. Buying or Selling Residential and Income/Investment Properties, How to understand the process, how to negotiate through the transaction, What to Look for - But more importantly 'What to lookout for!', How to tell if the time is right - or hold on and wait. Why not to listen to your friends and even your family members, Who really has your best interest at heart?. Understand why any market is a good market and how to spot a good investment for you! If you are looking in California.. check out my website www.MetroCalBrokers.com and if you need assistance in a neighborhood I don't service, I will locate a local agent to that area who actually knows their profession and can assist you in your needs!
Experience
4th generation Realtor in the real estate business, I have helped for over 2 decades clients buy and sell, I am the owner of a local brokerage in the Los Angeles /Long Beach area, and have been a top producing agent in the area since I became licensed. Working through a deal is different to every client, no two people or deals are exactly the same. Knowing how to bring professional advise to the table with clear and concise understanding of real estate world. I can help you handle your buying, selling and investing, managing a 1031 Exchange, working with Equity Sales, Probate, Pre-Foreclosure Regular and Short Sales there is little that I have not seen come across my desk over the decades!
Organizations
NAR,
CAR,
WCR,
ABR,
e-Pro,
GRI,
BKBIA,
CHNA,SSG
Publications
Broker Agent Magazine
Long Beach Business Journal
Long Beach Press Telegram
Signal Hill Tribune
Grunion Gazette
All Experts
Zillow - Lead Agent - Advise Expert
Truila - Advise Expert
Education/Credentials
Broker-owner,
RealtorŪ,
GRI,e-Pro,
SSG-Short Sale Certified
Awards and Honors
Managing Broker for MetroCal Brokers. We merged my old brokerage with MetroCal this year, and we look forward to expansion and growth moving forward. We currently employ 30 Realtors and growing.
15 years running top selling agent in Long Beach, South Bay area California.
Top Producer 5 years straight Re/Max, C21, Realtyworld.
Past/Present Clients
upon request = or check out our website www.MetroCalBrokers.com and check the Testimonials section!
©2012 About.com, a part of The New York Times Company. All rights reserved.