Zillow is a website that is able to be used to search real estate for rent or buy. You can also sell your real estate through the site and you will be able to be helped by professional agent. When you do a search in Zillow, you are able to find a lot of homes. But, can we find lease option to buy in that site?
Lease option can be defined as a contract where a landlord and tenant agree that the renter may buy the property at the end of a specified period. The tenant can pay rent plus an additional amount each month. The renter can use the cumulative extra payments as a down payments at the end of the lease. This thing is also called rent to own, rent option, or lease to buy option. Lease to buy option is popular financing instruments in the late 1970s and the early 1980s. They were used mainly as a way to circumvent alienation clauses in mortgages but they also have some other advantages. How to buy a house by using a lease option?
- First, you have to find a lease to buy home. You are able to find it online through Zillow by visiting its site to search a a lease to buy home. Or you can start checking for homes in your neighborhood. If you found a home you love you can also ask a seller to consider a lease-to-own arrangement. If you think that it is hard for you to do that by yourself, you can hire a real estate agent.
- After that, you need to researching the home and owner. If you have found the home, you need to check why the owner is selling. You also need to run a credit check. They might protest by you can explain your concern and refuse to go ahead until you run a check. Then, analyze tax records and you can get property tax records from the county tax assessor’s office. You need to pay attention to red flags because a lot of fraudsters are looking for a gullible buyer so you have to protect yourself. Then, get an appraisal to know how much the house is worth. And do not forget to have the home inspected.
- Now, you can negotiate a contract.
- After you negotiate the contract, you can buy the home.
A buyer who is potential may have a lot of reasons to use a lease option rather than buy the property outright at the beginning. A main consideration is not having enough capital or credit to make the purchase. Renting is able to permit the potential buyer to save money for the purchase and at the same time can build credit by making regular on time payments. A property owner can enter into a lease option agreement since they had trouble selling the house outright. This option is able to make the property more attractive to different types of potential buyers.