Good Price Homes, LLC, is a real estate
company that specializes in creative solutions
such as flexible options to purchase, assignment of options,
Leasing with an Option to Purchase, and other creative methods
of property acquisition.
Selling with An Option to Purchase
Selling with An Option to Purchase is an excellent way to 'break the ice' and that gives the seller and the buyer
a chance to get to know each other and the property. When negotiating and coming to the terms of
An Option to purchase the property, the buyer and seller get a chance to discuss what exactly would work
for them to hammer out a deal. The option leaves the door open for the buyer, giving the buyer time
to consider the actual terms, price, and purchase of the property, all the while increasing or improving
the chances of the buyer actually purchasing the property. A flexible option to purchase leaves the door open
for the seller in that the seller can still sell the property to someone else unless the tentative buyer
actually exercises his option.
Selling with An Option to Purchase is also a great way to determine if the seller wants to sell using
Higher Price Creative Finance Strategies or
Conventional Term Strategies
If you would like to get started with discussing the terms of selling your property with
an Option to Purchase, simply email us the price and terms you are asking for your property,
a description of the property and state in your email that you would like to allow us to acquire an
option to purchase your property.
Higher Price Creative Finance Strategies
An Option to Purchase,
Lease with an Option to Purchase,
Owner Financing,
Selling Subject-to,
Selling with a Wrap-around Mortgage.
Conventional Term Strategies
Cash
Conventional Financing
We've put together the following information to try to answer most
questions that property owners and sellers may have. The best sales
solution for you may be a combination of various methods discussed here
on this site, not just what is discussed here, so.. we hope this information
helps, and if you want to discuss anything in this package, please give
us a call. We'd be happy to hear from you.
Leasing with an Option to Purchase
What are the alternatives to Leasing with an Option to Purchase?
Instead of doing a Lease with an Option to Purchase,
the owner may choose a different strategy such as
selling with an option to purchase,
selling with owner financing,
selling subject-to,
selling with a wrap-around mortgage
and other methods, etc.
What
is a Lease with an Option to Purchase?
A
Lease with an Option to Purchase is simply a lease agreement with the
option for the tenant to purchase the property. The tenant/buyer makes
monthly payments, and it can be agreed upon that a certain portion of
the on-time payments is applied to the price of the house. The Lease
with an Option to Purchase allows the Seller to have their mortgage
paid for, plus have extra cash flow every month in many cases.
How do I get my asking price?
By
offering the tenant/buyer a set price at some future date, many
Tenant/Buyers in
the market place are willing to pay a premium for your home. You don't
have to haggle over the price with the tenant/buyer. They know the
price and they know there is no negotiation.
How much are you going to charge me?
Absolutely
nothing!! We get paid by the tenant/buyer in an assignment fee which
also
serves as an option consideration fee. We assign the option to Lease
and Purchase to the tenant/buyer and they pay us an assignment fee. It
costs you nothing!
I’m uneasy about having “tenants” in my
house. Will they tear up my house?
The
great thing about a tenant/buyer in a Lease with an Option to Purchase,
is that they are intent on exercising their option. They realize that
they are paying non-refundable money every month toward the purchase of
the house. They don't want to damage something that will be theirs.
Often the tenant/buyer may make upgrades or renovations to the property
if permitted
by the property owner. The difference between just a tenant and a
tenant/buyer is that they are proud of the house and they care about
it. When they put down thousands of non-refundable dollars to lease a
house that could soon be theirs
in the not too distant future, they are going to take VERY good care of
it.
Where do find your tenant/buyers?
We
are always marketing for tenant/buyers. They come to us from newspaper
ads, driving by our houses, referrals, or finding us on the Internet.
How can you assign an option to buy my house so quickly?
We
can't guarantee that we can assign the option in 60 days or less, but
due to the large number of people we have in our database that want to
lease with an option to purchase homes through us, we can often find
tenant/buyers quickly.
Why shouldn’t I use a Realtor?
You
can use a Realtor if you would like, but keep in mind that Realtors
charge 3-6% typically for selling your house. Using Good Price Homes,
LLC, costs you absolutely nothing! We do actually work with some
Realtors sometimes to help you, and will refer you to a Realtor if we
feel our program isn't right for you, or that your situation
dictates using their services.
What about the maintenance?
The
tenant/buyer is responsible for most maintenance. Plus, we always
recommend the tenant/buyer purchase a Home Warranty so that the repairs
are covered. The only repairs you are responsible for are the major
repairs such as structural, and roof, which fall under your insurance
as a homeowner.
What about insurance?
You
should contact your insurance agent for your specific needs, however,
it is now considered a rental/investment property, and you can lower
your coverage so as not to include items inside the house.
What about the tax benefits?
Until
the financing is complete for the tenant/buyer, the house is considered
an investment property for tax purposes. There are many tax advantages
to leasing with an option to purchase. Consult with your tax advisor.
How soon can the tenant/buyers normally get a mortgage?
Every
case varies some, but many tenant/buyers that come to us can actually
qualify within 6-8 months. There are just blemishes on their credit
that need to be resolved or removed. If the tenant/buyers need to have
discrepancies on their report resolved, we suggest that they begin the
process with one of our
recommended credit counselors before they move in.
I just don't feel easy about "renters". You know how "renters" are.
The
tenant/buyers we bring in or that come to us are not what you would
typically think of as renters. The people that come to us are great
people with great jobs, but something has happened in the past that has
caused them to feel as if they can't qualify for a mortgage. Most of
the people that come to us have been paying quite a bit to lease nice
homes in nice neighborhoods for sometime. The family and kids are
established in the neighborhoods and schools, and now the family is
tired of leasing and is ready to purchase, but they just need a small
cushion of time.
How much cash flow can I expect every month?
Of
course, that depends on your situation and your current mortgage.
Depending on your situation, you may benefit from refinancing the
property for a longer term or lower rate, thereby greatly increasing
your monthly cash flow.
What if the tenant/buyer decides not to buy?
This
is highly unlikely, as the tenant/buyer has two major ties to the
property. A financial tie, and an emotional tie. The financial tie
comes from the fact that all of the money they have paid, specifically,
the option consideration fee and any rent credits
are non-refundable. This is normally thousands of dollars in most
cases. The only way they will see that money again is if they close on
the property. They would be better off to close on the property and
then resell it themselves.
There
are usually only three cases where someone may not be able to purchase
the property, and they are all pretty catastrophic situations.
1)
Loss of or transfer of job
2) Death
3) Divorce
We have purposely put everything into place in our program to get the
tenant/buyer to close on the property. From the non-refundable option
fee payment, to the large rent credits, to immediately putting them in
contact with a mortgage broker
and credit counselor.
What if one of those situations occur, and they don't close on the
property?
If
for some reason they decided they couldn't close on the property, the
house is still yours and in your name. You may decide to use our
services again, or you may decide to try to sell it on your own or go
through a Realtor. The decision is yours. You are not contractually
bound to us in any way. But we are here to help you in anyway that we
can.
Q:
How does this process work? How do I get started?
A:
Step 1. All you have to do is submit the information in
the autoresponder form on this website.
Your information will be emailed to our Acquisitions Manager who will
contact you within 3 days to discuss your home and your situation. The
autoresponder will also email you additional information so it is
important to fill out the information there as best you can at this
time but if you are unsure of certain information,
simply give it your best guess and submit the form.
It is basically a primary inquiry and a
way to acquire the information to be able to get in touch with you.
Step
2. Then in your spare time, begin formulating your plan on how you want
to sell your property. Fill out the following documents and
fax/email/mail or deliver them to us to get things going:
Seller’s Non-binding Worksheet for Lease with an Option to Buy
Step
3. Our home buyer will contact you and make an offer on your home. You
can then determine if you wish to accept or reject their offer.
Q: Do you pay fair market value? Do you use an appraisal? How do you
determine the price you're willing to pay?
A:
If you are willing to sell on terms, meaning with a Lease with an
Option to Purchase or with Owner Financing, we are pretty much open to
accepting the price you want for your property if it is reasonably
within or under fair market value.
A:
If you are wanting an all Cash Offer, our Acquisitions Manager
will take into consideration the condition of the
home, cost of repairs that need to be made to the home, the current
local market conditions, as well as the urgency of the situation.
Q: How much do you charge?
A:
There is no fee to the home seller for our proposals to purchase your
property. There is only a nominal charge roughly equivalent to the
price we pay you for the option to lease and purchase your property if
you do not wish us to record a Memorandum of Option at the courthouse.
Q: Does it matter if I have a realtor?
A:
Our suggestion would be that you go ahead and fill out the form so our
home buyer can contact you. After that, you may wish to contact your
realtor to ask them what would happen if you find your own buyer.
Sometimes their commissions can be waived or fees can be significantly
lowered. If not, you may have to wait until the existing realtor
contract expires before our Acquisitions Manager can work with you.
Q: Do you only buy houses? Or will you buy condos, manufactured homes,
etc?
A:
We do not buy townhouses
or condominiums. We buy duplexes, beach
property, office buildings, apartment buildings, self-storage
facilities, farms, land, or any structure that has land deeded to it
such as a manufactured home or a mobile home.
Q: What if I have my property rented?
A:
If your home is rented. We can buy your house and take care of the
renters later.
Q: What if I am behind on payments?
A:
If you are behind on payments, we can still take a look at your
situation and see what we can do.
Q: Do I have to make repairs on my property?
A:
We will purchase the home in its as/is condition. You do not have to do
anything.
Q: How do I get started?
A:
Just complete
the simple form
on this website and give us a call at
912-308-393(4) today!
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