lease with right to purchase your new home in seattle mona & julie 2015
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Lease with Right to Purchase
New Home Buying Program in Seattle
Lease with Right to Purchase New Home Buying Program
• What is It? • Who Benefits? • How Does it Work?
Mona Renner 425-753-1928 [email protected]
Julie Hutton 425-260-4440 [email protected]
What is It?
The program buys the house you choose: • Then leases it to you • The house can be purchased when you are ready and able
• And at a price that is pre-established in the lease
What is It?
The Purchase Right Agreement gives the resident the right to purchase the home at a pre-defined price for each year of the lease, as long as the resident is in compliance with the lease terms.
Who Benefits?
• First time home buyers • Relocating home buyers that need a home quickly • Try- it before you buy it folks • Those who are going through a divorce • Those who have completed a recent short sale • Buyers with wounded credit • Those saving for a down payment
How it Works
• Submit an application along with $75 for a credit and background check
• Get approved to shop for your home
How it Works
Choose a home in your price range from any “homes for sale” in the greater Seattle area.
Lease with Right to Purchase Agreements
Within 24 hours of a seller accepting the program offer for the purchase of a home, prospective residents will : • Sign the lease • Sign the Purchase Right Agreement • Pay the 1st month and security deposit, (2 months
rent), all to be held in escrow
Lease with Right to Purchase Agreements
Escrow balance can be used for down payment if resident elects to purchase anytime during the lease.
How Does Lease with Right to Purchase Work
The Program pays for:
• The home • The closing costs • Any renovations and/or initial repairs
How Does Lease with Right to Purchase Work
These costs are used to determine your purchase price of the home.
How Does Lease with Right to Purchase Work
Each year, the Purchase Price of the home increases by 5% (ie, Prior Year Purchase Price x 1.05)
This graph shows the Total Cost Basis of the home is $215,000 (x1.05) and the Purchase Price for Years 1-5 as shown.
How Does Lease with Right to Purchase Work
The monthly lease payments are based on fair market value for homes in the area.
How Does Lease with Right to Purchase Work
How Does It Work? Each year, monthly rent increases by no more than 3.75%
Year 1 $1400
Year 2 $1450
Year 3 $1500
Year 4 $1560
Year 5 $1620
For example, if the Monthly Rent for Year 1 is $1400 per month, the increase for the next year is $50/month.
How Does Lease with Right to Purchase Work
The resident’s commitment is limited to:
• The first year lease • Resident does not have to renew the lease after the first
year • The maximum number of years in the lease is 5
Lease with Right to Purchase Agreements
Residents will be required to treat the home as their own: • Maintain the lawn and garden • Remove snow or other debris • And complete minor repairs
Lease with Right to Purchase Agreements
The program is responsible for any major maintenance items during the term of the lease.
Lease with Right to Purchase Agreements
The Right to Purchase Agreement does not obligate the resident
to buy the home.
Lease with Right to Purchase Agreements
If for any reason the resident decides to leave the home at the end of the lease term and is in compliance with the lease, the full
security deposit will be returned.
Lease with Right to Purchase
Please call, text, or email us anytime! We will provide additional information and resources about this great program at your request.
Mona Renner 425-753-1928 | Julie Hutton 425-260-4440 [email protected] [email protected]