The Facts on Lease-to-Buy

There's more than one way to get out of your house. You can, of course, sell it outright. Or you do a lease-to-buy deal.
By: Tammy Stoner
Related To:

If your house has been on the market for a while, you need to move quickly, or you have a motivated buyer who can't gather enough cash to buy but can put down a non-refundable deposit on a future buy, you might consider a Lease-to-Buy Option.

Your Realtor (or your collection of real estate books) can walk you through the details, but the overall picture is this: You and your  leasor  agree to a set price (great for the  leasor /buyer if the market goes up and great for you if the market goes down) and time frame to make an offer with a non-refundable "earnest money" deposit (often called a "consideration" in lease-buy options) from your  leasor . The  leasor  may offer to buy at any time during your term, often putting their rent and earnest money against the agreed-upon price. If they decide not to buy, you keep the earnest money and put the house on the market again (you hope at a higher price than the year before), continue your lease-to-buy, or simply switch to a standard rental agreement with your tenant.

Keep Reading

Next Up

Sell the Benefits of Your Smaller Home

Impress buyers with money-saving and eco-friendly features.

Scheduling Your Relocation

If you can postpone your move, you could save some major cash.

Sellers: What to Do When You Can't Find a Home Before Yours Sells

Did you sell your home so quickly you're worried you can't find a new home in time? See how one woman solved the problem.

Saving Money While Paying for a Home

You may be financially "exhausted" from saving for your home purchase, but now's actually a great time to keep saving.

Q&A: A NYC Broker on the Benefits of 'Test Driving' Homes

On the fence about a prospective home? Some brokers are letting buyers try out homes before they sign on the dotted line.

Protecting Your Home & Finances in Tough Times

4 steps to take to weather a recession.

How to Make an Offer for a House

Making an offer on a house isn't a total roll of the dice. There are some basic steps you and your Realtor can take to arrive at a price range and other terms that make sense.

Provide Easy Access For Showings

Opening up beyond the open house.

How to Recession-Proof Your Home Purchase

First-time homebuyers, word to the wise: Look for attributes that add value to your new home to help combat falling prices. Here, basic guidelines to follow.

Real Estate Survival Guide: Buyer's Checklist

Refer to this 10-step checklist to get you through the homebuying process.

On TV

Follow Us Everywhere

Join the party! Don't miss HGTV in your favorite social media feeds.