How to Lease a Home

Series Summary

Real estate is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings, specifically property that is stationary, or fixed in location. With the development of private property ownership, real estate has become a major area of business. Purchasing real estate requires a significant investment, and each parcel of land has unique characteristics, so the real estate industry has evolved into several distinct fields. Get real estate tips for buying rental properties and homes in this free video series featuring real estate agent Richard Blake. In this series, Blake gives instruction on the following topics: how to lease a home, how to invest in rental property, how to advertise rental property, how to find tenants for rental property, how to buy land for manufactured homes, how to lock-in interest rates for home loans, how to calculate a home down payment, how to calculate tax savings on owning a home, how to sell a condo, how to stop foreclosure on your home, how to become a real estate broker, how to purchase a home in foreclosure, how to do a quick-claim deed and how to refinance a home and save money.

Video Transcript

"Doing a lease option on a home is a fairly easy process. I'm Richard Blake in Clearwater Florida. I'm here to explain to you how you can do a lease option on a home. A lease option is very similar to a lease in general the difference being is that you are going to lock in a purchase price today and actually not pay for or not purchase the home until the future. Generally it's going to be anywhere from one to three years maximum. You do have to pay for this option. It can be any amount of money that the seller desires; generally it is a few thousand dollars. It's considered a nonrefundable deposit or a nonrefundable purchase on this option. What it does is it allows you to create a purchase price for the property based on today's current market value. If you are in an appreciating market it's a great thing, because it's going to save you a lot of money over time as well as it's going to allow you some time to save up for a down payment and build up your credit score; if that's the problem that you're having right now. What you want to do is ask your local real estate agent what the current market values are. Then once you know the current market values of the neighborhood that's going to give you confidence in making an offer of what today's market values are. So, you know that you are not overpaying for the property at this time. OK. So, again I recommend you contact your local real estate agent. They can assist you with a lease option purchase. Just know that you are making a good decision. Good luck out there. Have a great day."