Lease Options (as a seller) in todays (softening?) CA market?

[Gary F.]

I'm thinking of selling my San Jose SFR and looking at options. A Lease with Option to Buy is another method I am considering. It seems here in the Bay Area, it is starting to soften, DOM increasing, some sellers having to accept lower than listing price. But comps in my area show prices overall remain $1.1+

My question is in the current market, would it be advantageous to sell using this method?

[Christine Kankowski]

I've done it and it can be a win-win for both parties.

Make sure whoever is buying it is serious and ask why they need an option vs buying now. DO you really think they will qualify in the time period? Are you requiring a non-refundable deposit- that goes towards purchase when they buy.  Discuss who makes repairs during option period- typically buyer.

It works if the buyer can legitimately qualify- dont take someones deposit if they think they can qualify in a year... but you know they wont be able to. 

Agree on the price up front, or agree to get 1-2 appraisals for the price at the time of sale. 

You cannot sell to anyone else if buyers are in the option period- so your hands will be tied on that front.