They paid an upfront, non-refundable fee (usually 1% to 5% of the home price). This gave them the exclusive right to buy the house in three years.
Because they planned to own the home, the contract stated they were responsible for minor repairs under $500. This gave them a taste of homeownership—fixing leaky faucets and mowing the lawn—while the landlord still covered major issues like the roof or HVAC. 4. The Turning Point: The "Option"
The house was now appraised at $380,000, but because they locked in the $350,000 price, they started with $30,000 in "instant equity."
Instead of walking away, they looked into (also called a lease-option). Here is how their story—and the process—unfolds. 1. The Agreement: Two Parts in One
Every month, that $400 went into a virtual bucket for their future down payment.
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