Answers by Teodora Choneva

A lease-to-purchase can be a smart strategy in a slower market, but your concern is very valid—it comes down to structuring it correctly. The main risks to you as the seller are: 1. Tenant-buyer doesn’t close This is the biggest one. If they walk away in 1–2 years, you’re back on the market—possibly with more wear and tear and in an uncertain market. 2. Property condition Even well-intentioned tenants don’t always maintain a home like an owner would. Without clear agreements, you could inherit deferred maintenance. 3. Market changes If prices rise, you may have locked in a lower sale price. If prices drop, the buyer may be more likely to walk away. 4. Legal & structure complexity Seller financing / lease-options need to be structured carefully (especially in Illinois) to protect you legally and financially. That said, there are ways to reduce your risk significantly: Require a non-refundable option fee (3–5%+ ideally) Charge above-market rent with a portion credited toward purchase Do a full buyer screening (credit, income, lender consultation upfront) Set a shorter timeline (12–24 months max) Include maintenance responsibilities clearly in writing Lock in a fair but slightly favorable price today When it makes sense: Your home isn’t getting strong offers The tenant is financially close to qualifying You want income now and are okay waiting for the sale When to be cautious: Tenant has weak financials or no clear path to financing You’re already worried about property condition You need certainty, not “maybe” Bottom line: Lease-to-own isn’t inherently risky—it’s badly structured agreements that create problems. If done right, it can give you income, a future buyer, and better terms than today’s market.

For a $400,000 home, the salary you need really depends on your down payment, interest rate, and existing debt—but I’ll give you a realistic range based on what I’m seeing with buyers in the Orland Park area right now. A simple rule of thumb: Most lenders want your total housing payment to stay around 28–33% of your gross monthly income. Example breakdown: Purchase price: $400,000 Down payment: 5–10% Current rates (approx): mid-6% to 7% range Estimated monthly payment (with taxes & insurance): ~$2,800–$3,300 Based on that, most buyers are qualifying comfortably with a salary around: $95,000 – $120,000/year But here’s what really matters (and most people miss): If you have car payments, credit cards, or student loans, your required income goes up If you put 20% down, your required income drops significantly Property taxes in Illinois (especially in suburbs like Orland Park) can make a big difference in affordability What I tell my clients: Don’t focus only on price—focus on the monthly comfort level. I’ve seen buyers approved for $400K who felt stretched, and others at the same price who felt completely comfortable because of better financial positioning. My advice: Before deciding, talk to a lender and get a fully underwritten pre-approval, not just a quick estimate. That way you know your real numbers and can shop confidently.