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Anyone sell their house via a "lease to own" agreement?

My dad's house has been on the market for about 12 weeks. Interest hasn't been overwhelming, and he already lowered the asking price twice, per the advice of the realtor, to keep his house in line with comparable sales. They just had an open house and one couple expressed an interest. In the next day or two, the realtor is expecting this couple to propose to lease the house for a period of about 6-8 months, at which point they would purchase his home. The realtor has also indicated that, when they make this proposal, they will contractually guarantee that they will purchase the home in March and will also agree to the purchase price now, in the contract. They will also propose that some percentage of the monthly lease payments be applied toward the purchase price of the home. Has anyone had any experience with such an arrangement? Any tips or suggestions? Potential pitfalls? Thanks!

Public Comments

1. Not at all a good situation. Regardless of any contractual agreements, how on earth can the contract be enforced if the buyer couple cannot obtain financing ? You cannot draw blood out of a turnip. Keep the house on the market for a REAL buyer.
2. You should propose this be part of a home purchase contract with the closing set for nine months to a year and an obligation for the buyers to lease the property pending the closing. Further the parties can agree to apply some amount of rent towards the purchase price or downpayment. Your risk is as follows. The real estate market is in free fall. It will likely be worse in six to nine months. Prices will fall and the likelyhood of your "buyer" completing the "sale" is non-existent if they have comparable homes at lower prices to select among. Your "buyer" is hedging his bet by selecting your home to "rent" while watching what is happening to the market. Can you imagine your surprise if your "buyer" backs out for any reason and suddenly you are selling your home in an even further depressed market...and owe real estate commissions for your trouble... Good Luck.
3. THe upside is you don't collect a security deposit, you collect a non-refundable down payment. If they move in 6 mos. they forfeit their deposit. If the house is vacant it is better to generate some revenue rather than let it sit empty.