Steamboat Springs home lease option – good or bad?

Question: Should I negotiate a lease option for a home in Steamboat?

I think the first plan is to see what you can qualify for in terms of a loan. I have a lot of pros and cons for lease options.

Here are a few thoughts and dangers for lease options:

• If the price of your Steamboat home is lower when you option period is due, then you loose your option money
• The lease amount is not always  a competitive  purchase price as the leasor often feels they need a better cash flow for the right to give up selling their property now.
• If the interest rate is more and you cannot qualify for the loan at the time when you need to buy, then you waste option money and opportunity.

Once you pay your option premium, if a better deal down the road comes along or you simply find about the house in terms of items that were not know previously. I.e. the roof leak or the home is poorly insulated for exapmple, you have then wasted time and money.

As the purchase price or strike price partly determined by how much option money you risk, you may not have the lowest possible price negotiated if you offer a low option consideration.

Overall, lease options can be successful and they are mostly used profitably in rising markets, but they can be good in a stable market if you carefully negotiate the terms. That’s were I can help, but cash is king and buying out-right is probably best as you can guarantee a low 30 year fixed rate for mortgage and a supper steal of a price in the current market. Either, way I am happy to advise you guys.