Consumer News and Advice Archive


How does a lease option work?

Sunday, November 25th, 2007
A landlord agrees to give a renter an exclusive option to purchase the property. The option price is usually determined at the outset, but not always, and the agreement states when the purchase should take place - whether, say, six months, or a year or two down the road. ...
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What is a lease option?

Sunday, November 25th, 2007
It is an agreement between a renter and a landlord in which the renter signs a lease with an option to purchase the property. The option only binds the seller; the tenant has a choice to make a purchase or not. ...
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What are the benefits of seller financing?

Sunday, November 25th, 2007
Seller financing is a viable option when the seller does not immediately need the entire cash equity they have accumulated in the home. ...
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What is seller financing?

Sunday, November 25th, 2007
Also known as a purchase money mortgage, it is when the seller agrees to "lend" money to the buyer to purchase and close on the seller's home. Usually sellers do this when money is tight, interest rates are high or when a buyer has difficulty qualifying for a conventional loan ...
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What is a bridge loan?

Sunday, November 25th, 2007
It is a short-term bank loan of the equity in the home you are selling. You may take out a bridge loan, or interim financing, to help with a knotty situation: closing on the home you are buying before you close on the property you are selling. This loan ...
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Any advice on negotiating?

Saturday, November 24th, 2007
Be patient, know your home's worth, adopt a positive attitude, and do not let emotions---anger, pride, greed, or prejudice---get in the way of negotiating the best deal. ...
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What kinds of things are considered material facts?

Saturday, November 24th, 2007
The following examples include details that would qualify as material facts that must be revealed by sellers about their homes: ...
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Do I have to disclose information about my home?

Saturday, November 24th, 2007
Disclosure could protect you from a lawsuit. Today, home sellers in most states must now fill out a form disclosing material facts about their homes. Material facts are details about the home's condition or legal status, as well as the age of various components. ...
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What about appraised value and market value?

Saturday, November 24th, 2007
A certified appraiser who is trained to provide the estimated value of a home determines its appraised value. The appraised value is based on comparable sales, the condition of the property, and several other factors. ...
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