Huntington Beach offers a wide range of housing opportunities from residential homes, condos, townhouses and even manufactured homes. Our office gets a lot of calls from renters who have the ability to buy but would like to test out the market first before making the big purchase. They often ask about properties that are available for lease that can be purchased down the line. This is typically called a lease option where the renter has the ability to purchase the home at a later date. Here is a brief explanation on how this works.
First, you find a rental home in Huntington Beach where the owners are open to selling the property as well. A lot of times owners will have their property up for sale and for rent at the same time and take whatever comes first. For those who do have their home on the market there will be the traditional list asking price. This will be the basis price going forward when negotiating the lease option. For example, if the home you are thinking about buying is listed for $500,000 and also for rent at $5,000 a month. You would typically offer to pay a rent of a slightly higher amount, say around $7,000 a month but have $3,500 of this amount go towards the down payment when you exercise the right to buy the home. Let's say you bought the home after leasing it for 12 months you would have $42,000 going towards the down payment of the home.
Lease options sometimes also have a non-refundable fee that is paid for the seller to allow the consideration of a lease purchase. This can be any amount from $1,000 to $100,000. Basically this is a negotiated amount when some deals have no non-refundable fee's association with the transaction. That's why it's important to have a license professional handle the transaction to help you get the best available price and terms. There are several homes for sale in Huntington Beach that are also listed for rent. These are perfect opportunities to find a seller that will consider doing a lease option. We have gathered a current list of available rental homes that may be open to selling as well. Please contact us at 949-482-1313 to learn more about this process.