Appraisel Issue With L/O
I currently have a 12 month lease option and the tenants are excersising their option after 3 months. I negotiated top price for the neighborhood and now fear appraisel issues. They are paying 1000/month rent with a purchase price of 122,500. Top house in the area has sold for 116,000.
ckdonley
All well said. Additionally, ask if he will pay the difference?? Because the prize projection you made to get even or whatever is based on 1 yr appreciation.
It would have been nice if it was added to the contract.
"Exercising the purchase opt early"
chumah,
What do you mean by adding "Exercising the purchase opt early"? This appears to be an option contract at a fixed price over the option period, which is extremely common.
Ed
ck,
Regardless of what the appraisal comes in at, your tenant/buyer contracted to purchase at $122,500.
A contract is a contract. $122,500 is what you agreed to accept for your property. How your tenant/buyer comes up with the money is not your concern. However you could be the hero by offering to carry back a small 2nd.
If they choose not to excercise, you get more option consideration from your next tenant/buyer.
Just my opinion.
JD
Hi, quinn
Glad to see you are back. There are some programs out there with 100% financing. I am pursuing one for not-owner occupied. The interest is high because it is a rental and it is for a small amount. Whether your tenant/buyer can qualify is another issue. Section 8 also has a home purchase program but I know nothing about it other than some of my Section 8 tenants have "signed up". None have purchased as yet. You might check this out with your local Housing Authority to see if your property may be a candidate.
Regards,
Ed