Why Realtors should consider Lease Options

I've trained real estate agents across the country in lease options, teaching them how to help their clients. But I still run into agents who don't want to do them. That's okay, but sometimes agents just need to learn a little more about lease options to open their minds.

Lease options can be great both for home buyers and home sellers. They aren't the perfect solution for every situation, but there are many cases, especially in our current real estate market where an agent could significantly increase their commissions by putting together lease option transactions and help their clients. Let me give you some example situations where a lease option could be good for a Realtor and increase their commissions:

• Have you ever had a potential buyer come to you who has not tried to qualify for a mortgage yet so you refer them to a mortgage broker and then never hear back from them? Let's face it, a lot of would-be buyers out there can't qualify for mortgages right now, but they still want to buy a home. These are perfect lease option buyers. Just because they can't qualify right now doesn't mean they won't be able to qualify later. Why not tap into this pool of buyers and get paid instead of turning them away and watching another commission check walk out the door. And it's only going to get worse. The new rules for credit scoring are being implemented that is making it harder for some people to qualify right now. Plus the credit card industry is tightening things up. I know of one buyer who could have qualified for a mortgage two months ago that can't now because the credit card companies have changed so much. He had one account closed on him and two others where they reduced his available credit to just above his current balance. That had enough impact on his credit score that he could no longer qualify for a mortgage. And he never even so much as had a late payment with any of those credit cards! So instead of having to be stuck renting, this would make a great lease option buyer.
• What about the sell side? Do you have any listings where your client has told you that if they can't get their home sold soon they are going to have to rent it? This makes for a perfect lease option seller. You already know that they are considering renting their home plus you know that they really want to get their home sold. How much of a commission do you make if all you do is find a renter for someone? Squat! With lease options you can still get your full commission!

This is just 2 examples of why Realtors should consider lease options and two ways that any agent can increase their commissions right now. If you want to learn more about lease options take a look at my books Rent to Sell and Rent to Buy. They are a great resource for any real estate agent.

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