lease to own

[Jerrell Slay]

me and my wife are looking to buy a house lease to own. The couple selling their house seem desperate and doing FSBO, they had me call a Realtor that's basically walking them thru it. When I talked to the Realtor, she said 2 yrs 500/mo but our monthly rent doesn't go towards the principle,( basically just the cost of doing business she says) so at the end of our 2yrs we would have paid 12k that goes to nothing, then have to get financing, and the bank won't loan more than appraised for, is this normal? We believe the house is over priced as it is, and there's a reason the realtor isn't putting her name on it, but she's helping the couple find their new home. I would like for our monthly payments to go towards the principle and for the price to come down a tad, any advice is greatly appreciated.

[Jeremy Pace]

the assessment value and the appraised value of the house aren't necessarily the same.  You need an appraisal report (or some good comps, sales within 6 months) to know what a reason sale value might be.  

Do they owe any money on the property?  Do you have money for a down-payment to simply buy it?

Also, side note: lease options are generally intended for owner occupants, if the 'buyer' is an investor, the lease has to explicitly allow subletting.  Also, in lease option situations, the original owner is still responsible for repairs and maintenance, etc ... and can have additional liens put on the property.