With a shift in the real estate market here in Southern California the more you are going to see sellers that are open to creative ways to sell their home. In a down market, owners of properties need to be flexible in how they sell their home since there is typically a limited number of buyers in the marketplace that can buy a home. This is especially true for the city of Long Beach where homes in a down market can take a longer time to sell. One of the creative options we are starting to see is the idea of a lease option. These are properties that are listed for lease with the owners also willing to sell as well. In these cases, a lease with an option to buy can often be negotiated if you know how to structure the deal correctly. Here is a brief explanation on how to set this up.
First, locate the properties that are listed for lease with the owners also open to selling the home as well. We have actually did the research on this one and have complied a list of properties that fit that criteria and listed below. Second, have your real estate agent approach the seller to see if you can lease the property with an option to purchase. If they are open to this then that may want to negotiate the sale purchase price now and not have it go into effect until you exercise that option. If you decide not to exercise the option while you are leasing the home you are not obligated to buy the home. It's a pretty clever way to buy a home that you are currently renting if you decide you want to do so. One thing to keep in mind is if you negotiate a sales price now and the market goes down in prices then it's best not to exercise the option to purchase. You can always try and re-negotiate the purchase price but this is a hard thing to do after the fact. If you have any questions on how this works feel free to contact us direct at 562-355-8228.