Renters wanting to become homeowners

3 Replies

Hello,

I know a family that just moved into a great rental home and neighborhood.  Their goal would be to stay in the house for as long as possible and purchase if afforded the opportunity. The previous house they rented, the owner decided to sell and gave them 30 day notice.  Not good when you have two kids.  

I'm trying to structure a deal/contract they can present to their current owner that would at least give them the right of first refusal should the owner decide to sell the house and also give them an opportunity to buy the house. Would it be best to propose a lease with option to buy as part of this contract?  Any insight is appreciated. 

Hi Willie,

That's unfortunate that they had to deal with that.

Either is a viable option but it really depends on when they are looking to buy.  First right of refusal would allow the owner to keep on renting indefinitely and never sell.  The lease option is more of a unilateral agreement and the renters get the benefit of deciding if they want to exercise the option on X date.

As an owner, I would have no issue signing a first right of refusal as that lets me work to my timeline. If a renter approached me to do a lease option, I'd have to be ready to sell when that option time comes up.

Allen

Allen Maris, Real Estate Agent in CA (#01918765)

It depends on the sellers motivation and financial goals.

The tenants need to show the benefits to the owner and that they are sincere buyers to be

If the owner is a buy and hold investor, it is tough

A long term 5 year option might be a win win

@Allen Maris  @Brian Gibbons  

Thanks for responses.  From what I've heard of the owner, he's an older gentlemen and this is a buy and hold scenario.  I'm not sure what the long term strategy is for the owner.  I don't feel that he has a timeline in place. However, it's a family property so there's more sentimental value attached to the house.  The family just wanted to be in a position where if the opportunity arises, they can stay put. They are good tenants and I was trying to create something for them that gives them some leverage with the owner as well as allowing them to purchase if possible.  Hope this makes sense.

It sounds like it would make sense for the family to be prepared at any time for the purchase of the house or have an investor take over the property to help them maintain their residences.