I had a would-be buyer ask me the other day if it was normal for a Lease Option seller to ask for 10K down payment for a 100K house. The short answer is NO. I've been doing lease purchases for many years and I've never asked a buyer to put down 10%. If they had that kind of money they can get a loan and purchase it right there and then. I usually ask for 1-2% down on the lower priced homes and in the bigger, more expensive homes I ask 3-4%. Of course nothing is written in stone.
There are many variables in the process that will effect the amount both parties will agree on. However, one main thing to keep in mind, if you are the buyer, whatever the amount, DO NOT SIGN for something you're not sure you can pull through. If you can't close by the agreed upon date, you will lose the money. So, be careful!
If you are the seller, do not sign a lease that is too long. One year to 18 months is best (shorter preferred). Remember, the lease option is an obligation to the seller, but is only an Option to the buyer. So, don't make any plans to spend the money until you close and the money is in the bank.
Another important point: Do not forget to adjut the price according to the length of the lease. If you agree to sell the house and close 12 months from now, remember APPRECIATION. The house will not be worth next year the same as it is now. Make sure to check the local appreciation rates and add it to the price.
If you have any questions about this subject, e-mail me. I've been doing rentals and lease options (rent-to-own) for a while and although I'm no expert on it, I've learned a thing or two about this matter and I'd be glad to share my experiences with you.
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