Oceanside Lease Option Homes For Sale

Posted by Sam Smith on Wednesday, November 30th, 2022 at 2:47pm.

We had a client contact requesting more info on how a lease option would work on a rental property that she had found.  We explained to her that there are several moving parts to doing a lease option as putting a deal together like this takes a lot of negotiations on several fronts.  First, we explained that we need to find out if the owner is willing to sell the home even though the home is only listed for lease.  Once we found out that the seller would entertain an offer to purchase it we asked if he would be willing to do a lease first with an option to buy it within a 12 month period.  The owner said that they would agree to this depending on the purchase price of the home.  Since the property is not listed for sale this is a negotiable number that needs to be negotiated first.  This is typically done on a standard residential California purchase agreement that any real estate agent would use.  This purchase agreement would also include an "option agreement" which would be tied to both the purchase agreement and lease agreement in the case the tenant would want to exercise the option to purchase it after the lease starts.  A 12 month lease agreement would also need to be drafted at the same time as well.  Between the option and lease agreement there would be some kind of legal language that would state how much of the monthly rent would go towards the down payment if the option was exercised.  We explained that all of these contracts need to be connected to each other and all the various terms of all 3 agreements would need to be negotiated before the lease starts.

There are a couple of pros and cons for doing a lease option.  First, negotiating a price up front can be good in an upward moving market with real estate prices increasing.  Locking in a price now means that the property may be worth more money in the near future.  In a declining market the opposite of this can be true.  There are ways around this in a down market but putting an appraisal clause in the agreement stating that the purchase price would be based off a current appraised price upon the exercising of the option.  Not all owners will go along with this so it's best to work with a real estate agent who understands the various nuances of a lease option and knows how to negotiate the many items in these agreements.  Below are some rental properties in Oceanside that have indicated they would be open to selling as well.  These can be perfect candidates for a lease option but that is up to the owner of the property to decide on this.  If you have any questions on how to put a deal like this together please contact us below.

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Listing information last updated on May 29th, 2024 at 7:03pm CDT.