Current Lease Option - Trying To Sell

leadingsuccess profile photo

We are currently in a lease option that we entered into 1 1/2 years ago. The contract is up the end of the year. We entered into the contract when the sellers simply could not sell and were desperate to get someone in to pay the mortgage and the home was in disrepair. Since then, the location and market turn has made the property worth much more than the option price. Not to mention the updating we have done on the home just to make it comfortable.

The option price is $142k. The current market value is approx. $200k with houses currently selling in the area within weeks. Surrounding homes are in the 250k-400k range.

There is only mention of not subletting without prior permission. No mention of not being able to sell in the contract. We have to move from the area and would hate to lose out.

Here are the questions:

1. Are we able to find another buyer for the home and close our contract for the option price and the new purchase at the same time, cashing out at closing?

2. If we were able to do the above, what are the potential risks that the deal would not close at the same time or the other buyers closing would not go through?

3. Do we need to notify the lessors of our intentions to sell the home?

4. Would it be smart to use a realtor to list the home since we are in a higher priced area in our city?

5. Is there recommended reading or course on the above matters that someone could point me to?

Thanks!

Comments(3)

  • mfualaut3rd July, 2004

    [ Edited by mfualaut on Date 07/05/2004 ]

  • Jimbezy3rd July, 2004

    You could just sell the home, exercise your option and then do a dubble closing. Paying the lessor off, taking title, then close with your buyer all within a few hours of each other. I also suggest you try and sell your home for 30-60 days before you decide to get a relator, $12K would be worth getting out there and agresivly marketing your home.

    Best of luck,
    James

  • j_owley3rd July, 2004

    you should be able sell quick if you are not greedy

    pass it off to another investor at a discount to move it quick

    wink

Add Comment

Login To Comment