🏡 Southern Real Estate Weekly Update + Lease Option Contract Guide
Welcome back to our Southern Real Estate Weekly Update — your down-to-earth recap of what’s going on in the market and how to make the most of it. Whether you’re buying, selling, or just keeping tabs, we’ve got the scoop
📈 Southern Market Snapshot (Week of May 25–31, 2025)
🔹 Regional Highlights:
- Tennessee & North Carolina: These two continue to lead in mid-size city growth. Places like Knoxville and Greensboro are seeing an uptick in pending home sales — up 3.2% compared to last week.
- Texas Suburbs: Frisco, Georgetown, and Pearland have seen more listing activity, especially in new construction homes. Builders are offering closing cost assistance again. (Yes, finally!)
- Georgia: Atlanta’s inner-ring suburbs are seeing more lease-to-own activity, especially in neighborhoods priced under $400K.
- Florida: Inventory in the Panhandle (think Destin, Pensacola) ticked up 4%, cooling off prices just a touch — good news for buyers who’ve been waiting.
🔻 Price Movement:
- Median home prices are flat week-over-week, but compared to last year, we’re still up about 4.5% in most Southern states.
- The average days on market is sitting at 42 days, down from 49 in early spring — sellers are starting to price more realistically.
🧠 Quick Insight:
If you’re a first-time investor, lease-option deals are picking up steam again. They’re a great middle-ground strategy in this kind of market. If you’re curious, we’ve included a simple lease-option contract example below!
📝 How to Create a Lease Option Purchase Contract (With Example!)
A lease-option purchase (aka “rent-to-own”) allows a tenant to lease a property with the option to buy it later. It’s popular in a shifting market like ours where some buyers need time to save or build credit, and sellers want steady income while waiting to sell.
Basic Terms You Should Include:
- Lease Term: Usually 12–36 months.
- Option Fee: A non-refundable fee paid by the tenant for the right to buy later (often 1–5% of the purchase price).
- Purchase Price: Fixed now or determined at end of lease.
- Rent Credit: A portion of rent goes toward the purchase.
- Maintenance Agreement: Decide who handles what.
- Option Expiration: The date the purchase right expires.
🔍 Example: Lease Option Contract (Short-Form Sample)
Lease Option Agreement Date: June 1, 2025
Landlord/Seller: Sarah Thompson
Tenant/Buyer: Michael Reyes
Property: 123 Southern Pines Rd, Franklin, TN 37064
1. Lease Term: 24 months (June 1, 2025 – May 31, 2027)
2. Monthly Rent: $1,850/month
3. Option Fee: $7,000 (non-refundable; applied to purchase price)
4. Purchase Price: $365,0005.
Rent Credit: $300/month applied to purchase if option is exercised
6. Maintenance: Tenant responsible for utilities and lawn care. Major repairs by Seller.
7. Option Deadline: May 31, 2027 Tenant has the exclusive right (but not obligation) to purchase the property on or before May 31, 2027, under the above terms.
Signatures:
Sarah Thompson (Seller)
Michael Reyes (Tenant/Buyer)
💡 Pro Tip:
If you’re writing up a lease option yourself (or reviewing one), always run it by a local real estate attorney. State laws vary, and you want it enforceable and fair.
Wrapping Up
The Southern market is still warm (not overheated), and creative financing strategies like lease options are making a comeback. Whether you’re a buyer looking to break in or a seller trying to keep things flexible, this could be your moment.
Want help drafting your lease option agreement or finding rent-to-own properties in your area? Drop us a message — we’re always happy to help you navigate this market like a pro.
Until next week,— LTJ REAL ESTATE LLC 🧡
Would you like this blog post formatted for your website (e.g., WordPress, Medium, etc.) or emailed as a newsletter? I can also expand the contract into a downloadable template if you’d like.
References:
National Association of Realtors. (2025, May 30). Weekly housing market monitor: Southern regional update. https://www.nar.realtor/research-and-statistics/housing-statistics
Redfin. (2025, May 30). Housing market data center. https://www.redfin.com/news/data-center/
Zillow Research. (2025, May 31). Southern U.S. metro trends. https://www.zillow.com/research/data/
U.S. Department of Housing and Urban Development. (n.d.). Rent-to-own housing arrangements: Legal considerations and guidance. https://www.hud.gov/
Investopedia. (2024). Lease option: What it is, how it works, and example. https://www.investopedia.com/terms/l/lease-option.asp
BiggerPockets. (2023). How to structure a lease option agreement. https://www.biggerpockets.com/guides/lease-option-agreement