Should I Consider Lease Option?
We have excellent credit and an income of around $110k but want to reduce our debt substantially before we buy. Our income has been rising from much lower levels, and a lot of debt accrued. None of it was buying luxuries or anything (not that that matters here, but I wanted to justify myself a little....) 
If we were in a market (we're in Atlanta) where prices were rising rapidly we'd probably buy now anyway, but this is not the case here. In fact, I'm guessing prices will go down instead of up. There are record foreclosures and bankruptcies and seemingly endless supply.
I would love to do LO because I want to get into a house we're going to stay in asap. But what if the price declines? I would want to pay market value at the time the option is up.
Is it possible/have you heard of a clause in the contract where the buyer pays the appraised value of the home when the option is up rather than setting a price at the beginning? That means if I'm wrong and the price goes up, I'd have to pay more, but that's okay too.
Or maybe such a clause wouldn't be necessary because the bank won't lend more than what it's appraised at.
Educate me. Thanks.
Yes, you can buy an option which states that should you exercise your option, that the price will be the FMV at the time you exercise the option by a mutually agreed upon appraiser.
However, that said, it is possible to find a motivated seller who will L/O you a property below current FMV, which if you structure it properly will still be below FMV at the end in any but the worst market.
[addsig]
GettingReady,
I am in Atlanta, and I may have a couple of properties that may fit what you are looking for. Drop me a PM and let's talk.
Prosperous investing,
td