Agent

Purchase price for lease-option debated

If home values rise, some believe sellers get hurt

DEAR BOB: I like your idea of using a lease-option to sell houses and condos in a tough buyer's market. As a real estate agent, my question is do you set the option purchase price when the lease-option is signed or when the option is exercised? If the option price is set up-front, it seems to me that hurts the seller if home prices go up --Sylvia R. DEAR SYLVIA: As a buyer and seller of rental houses and for my personal use, I've been using lease-options at least 25 years. I have always set the option purchase price at the time of entering into the lease-option contract. Purchase Bob Bruss reports online. However, as a seller I sign only one-year lease-options. At the end of each year, if my tenant isn't ready to exercise his/her purchase option, I then have the right to "adjust" the rent and the option purchase price. If market values and rents haven't increased substantially, I leave the terms unchanged. However, when rents and market values escalate, then I raise the rent and the op...