We have a property on the market in Lawrenceville GA for over 6 months now. It's a really nicely finished home on a corner lot, but with pine trees all around. It comps at $140-$160K and we're offering it at $139k
In summary, The offer is $3000 down, $1200 per month for three months and then close in 3 months at $135k. they want 3% toward closing costs, a $5000 damp proofing upgrade on a former flood issue in the basement and also assuming anything else fixed they might find while living there.
Of course we also have 6% Realtor fees to cover out of that.
I have my own ideas about this, but where better to get real world feedback and experience than from the BP community!
Thanks in advance for your input.
What's their reason for the 3 month delay and have you verified it? Has their preapproval been Thoroughly reviewed by someone you trust? "Any thing else they find while living there" would have to be excluded.
The offer just came in, we understand they have to sort out some credit issues, but we have done no diligence yet because we're still looking at the offer as it stands and asking ourselves if we want to commit to this type of a deal?
So we passed on this, just don't like selling via lease option. surprised how little response this posting got.
It would have gotten more interest if you'd explain why a property listed $1, 000- $20, 000 under market sat for 6 months to only get a crappy lease option deal.
Normally a lease option is offered when the buyer is qualified to pay but not qualified at this time for a bank loan. I would take it if the buyer is qualified and if the buyer can be qualified for a bank loan in say 24 months. I would require at least a $5,000 deposit and a monthly payment in excess of the monthly payment of a bank plus taxes and insurance. The excess would be a reduction of the option price. The option price would be higher than my current selling price. The buyer is responsible for all maintenance and repairs. Having said that I would insist on a home warranty on the property.
Related to this house in my experience a home sitting for 6 months is over priced.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!