Understanding Lease Options In Eugene

Understanding Lease OptionsLeasing with an option to purchase is an excellent method to move from renting a home to being an owner. It offers many advantages over the traditional methods of purchasing a home.

No large down payment required. Instead you pay an amount up-front called “option consideration.” This amount, generally about 5% of the purchase price, locks in the price during the term and gives you the exclusive legal right to purchase the property. However, you are not required to purchase. If you exercise the option, the option consideration is applied toward the purchase price. If you do not exercise, it is not refundable. This compensates the investor/owner for keeping the property off the market during the term and for locking in a purchase price, regardless of whether home values increase.

Rent credit. If you decide to purchase, an agreed-upon portion of your monthly rent is applied to either the purchase price or the down payment which may be required by a mortgage lender. This allows your rent money to be working for you, instead of being thrown away.

Profit from any appreciation during the term.

Time to check out the home and neighborhood before buying.

No up-front loan qualification necessary. In most cases, we only require income verification and references. In addition, when you decide to exercise, we work with many different lenders, so we can work with you to help you obtain the best financing for the best terms.

Allows time to save additional money for down payment, fix credit problems, etc.

No taxes to pay during your lease term!

Quick move-in time. No lengthy waits to arrange closing. Look today, move in tomorrow!




Q: Why should I pay option consideration when I can just rent by paying a security deposit and get it back when I move?   

 A: When you rent, your rent money is not working for you; it just disappears month after month. The option consideration allows you to move toward home ownership while still keeping your payments affordable. 

Q: What if I decide I don’t want to buy the property?
A: You are not required to exercise the purchase option; however, the option consideration is NOT REFUNDABLE should you decide not to buy. 

Q: What if I need more time before buying at the end of the term?
A: In certain cases, it might be possible to renew the lease for another term. This would require payment of additional option consideration, and could require that the purchase price be renegotiated. 

Q: What about utilities, property taxes and homeowner’s insurance?
A: All utilities are the responsibility of the tenant/buyer. Until you purchase, all taxes are paid by the seller. In addition, we will maintain insurance on the structure and grounds, but you should consider obtaining renter’s insurance to protect the contents. 

Q: What about maintenance?
A: The tenant/buyer is generally responsible for up keeping and repairs. 

Q: Where can I get more information?
A: If you have additional questions not answered here, please feel free to contact me at the numbers above.


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