Murfreesboro, TN, July 25, 2009 --(PR.com
)-- HobNobMurfreesboro has been working closely with Ray Burkhalter, owner of Sugarbush Properties, LLC who has almost two decades of real estate experience and together have laid out some important things to know about the difference between lease-option and lease-purchase and which one is best for you when buying a home.
In today’s tough economic climate there is a silver lining in the housing market. If you are thinking of buying a house there are lots of great deals out there for you to take advantage of. If your credit is not perfect you may have looked into some of the creative ways to purchase like Lease-Option and Lease-Purchase.
The question most people have about these two methods of getting a house is “What’s the difference and which one is best for me”. First, it is important to know that There Is a difference between the two. A Lease-Option agreement involves leasing a house for a period of time and then having the Option (but not the obligation) to purchase the property. Basically you pay an option fee to move in and lease the house with the exclusive option to buy if you want to. It’s your choice.
With the Lease-Purchase you are still leasing the property but at the end of the term you Are Obligated to buy the home. You get to move into the home and have an extended period to get the financing locked in to close on the property.
Is one method better than the other? Maybe, depending on your needs. The Lease-Option allows you to move in immediately and lock in on a price without guaranteeing you will ever purchase the house. The Lease-Purchase really lets the seller know you are serious and just need some time to prepare things for closing. Both methods buy you time to get your finances and credit in order while enjoying the benefit of living in the house.
Stay tuned for more creative buying methods…
Ray Burkhalter, President
Sugarbush Investment Group, Inc