I can't say there is a normal lease to own option fee, but typically it's a small percentage of the asking price for the home.
Most real estate investors pay as little as they can get away with to the seller. Then the Investor will obtain a more substantial, maybe around 10%, of the final sales asking price from the tenant buyer.
Let's break down the lease to own process into small parts.
If you plan to make all the current house payments, then this fee would be less than if the seller is planning on contributing to the house financially.
The other option fee is what you will collect from the tenant-buyer, and is normally is non-refundable. Customarily this fee is ten percent of the price that they will be paying for the home. The tenant-buyer leas to own option fee is then used as a credit towards their purchase price. And it will show as a credit to the buyer on the closing statement, when they close on the property.
It's important to always do what is right for all parties, and once you've done a few of these deals the amount of option fee you offer will become second nature.
The seller of the property is offered an option fee, since they are agreeing to the option of leasing the home with the intention of it selling to the tenant. So they get a small compensation for taking it off the active market for a short time.
Once you and the seller come to terms on the sales price of the home, you can then market the home to a qualified tenant, who will ultimately bu the home. So the tenant-buyer will be charged an option fee for the privilege of leasing the home before they buy it. Customarily, this lease to own option fee is around 10% of the sales price.
I'm keeping this brief, because the lease to own option fee is only one metric of the process. If you want to learn more about the lease to own process, check out these other articles that will help you with this profitable concept. . .