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New Contributor
dicej32
Posts: 70
Registered: ‎04-05-2008
0

Exercising Lease Option in Las Vegas

HI, my lease option term is coming due dec 15th. I have informed the owner of my intention to exercise the option and they gave me their Realtor contact in Vegas since they live in California. This realtor is the same person who wrote up the lease option contract that i signed. The contract specifically says that the house will be sold to me for appraised value. I will also have a credit of $10.5k from monthly rent credit and deposit at lease signing. I contacted a mortgage broker and I have been approved for fha and conventional. The sellers Realtor now has told me that to open escrow and order an appraisal, we have to do a contract addendum specifying a purchase price. The problem is that the price she is quoting is about $18k higher than any estimate my mortgage broker and personal research has shown. My contention is it shouldn't matter as the contract clearly states pricing will be appraised value. She's telling me that the sellers may not be happy with appraisal and request another appraisal if they don't agree. This is not the way the contract reads. My mortgage broker is advising me but of course he's not an agent. All i want is to honor the contract as signed, get an appraisal done and get done with it. Do I need to get an Agent now even though I've already been living in the house for 2 years? This is stressing me out as I've done everything in good faith and now feel like I'm jumping through hoops to get this deal done. Any suggestions would be appreciated.

 

Thanks,

 

JR

 

Established Contributor
203bravo
Posts: 736
Registered: ‎08-25-2008
0

Re: Exercising Lease Option in Las Vegas

No reason to stress... Get the appraisal and then do the offer for the appraisal amount.  At this point the guesses by the leasing agent, your mortgage broker, and you are of no importance.  You can't really make your decision until you know the exact amount the comes in on the appraisal.

New Contributor
dicej32
Posts: 70
Registered: ‎04-05-2008
0

Re: Exercising Lease Option in Las Vegas


203bravo wrote:

No reason to stress... Get the appraisal and then do the offer for the appraisal amount.  At this point the guesses by the leasing agent, your mortgage broker, and you are of no importance.  You can't really make your decision until you know the exact amount the comes in on the appraisal.


 

That's the problem. Per the sellers agent and confirmed by my broker, they can't order an appraisal until escrow is opened. Escrow can't be opened until there's a price offer in the contract. The sellers agent wants to make an addendum to the lease option contract setting the price at $118k to get the  process  started. I'm worried that if I sign this addendum that I'm giving up my right to pay only appraised value.

 

Thanks,

 

JR

Valued Contributor
tooleman694
Posts: 2,297
Registered: ‎08-25-2011
0

Re: Exercising Lease Option in Las Vegas

Then make an offer on the home and wait to see what the appraisal is.. End of the day, thats what the price of the home is gonna be..

Established Contributor
203bravo
Posts: 736
Registered: ‎08-25-2008
0

Re: Exercising Lease Option in Las Vegas

you can order a private appraisal at any point... They will not order the appraisal for the loan until there is a contract.  So this was you would end up paying for 2 appraisal.. I wouldn't want to do that.

 

If you feel that the 118k is more than the appraisal is going to be.. then you can offer that and they should already know that no bank is going to loan more the appraised value so at that point the seller will have to make the decision to reduce the price to the appraised value or not sell the house.

New Contributor
dicej32
Posts: 70
Registered: ‎04-05-2008
0

Re: Exercising Lease Option in Las Vegas

Thanks for all the replies. We finally figured out the wording for an addendum that specifies a purchase price offer but also specifically reads that the buyer (myself) will pay appraisal price. Should be able to open escrow now and move forward.

 

Thanks again,

 

JR


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