Thursday, February 14, 2008
Home seller's question: rent or sell??
We had a negotiation if the office last fall with a home seller who had a unique situation.
The owner had his home on the market for about six months and had already moved to another area. And he needed to get out from under the mortgage payment.
Other than our buyer who was interested, he had a person who was interested in renting the home with an option to buy it at the end of the year.
I needed to convince the seller that he should sell to our buyer for less than what the rental guy wanted to pay next year, without letting him know how much our buyer wanted the home.
So I pointed out to him that:
1. The renter may not be able to get a loan in a year - which would put the seller back in the same situation.
2. The renter may break the lease and the owner would be saddled with landlord challenges.
3. The market values could drop and the buyer wouldn't want to pay as much next year.
4. The renter could damage the home or something in the home could break, and he would need to put more money in the home.
And a few more....
At least one of the scenarios must have struck a nerve for him because when he saw our offer (again that was significantly less than what the rent-to-own guy was offering) he took it.
Good deal and great house for our buyer, and we solved the seller's problem.
If you know who the rent-to-own guy was send him to our office so he doesn't get out-negotiated the next time!
The owner had his home on the market for about six months and had already moved to another area. And he needed to get out from under the mortgage payment.
Other than our buyer who was interested, he had a person who was interested in renting the home with an option to buy it at the end of the year.
I needed to convince the seller that he should sell to our buyer for less than what the rental guy wanted to pay next year, without letting him know how much our buyer wanted the home.
So I pointed out to him that:
1. The renter may not be able to get a loan in a year - which would put the seller back in the same situation.
2. The renter may break the lease and the owner would be saddled with landlord challenges.
3. The market values could drop and the buyer wouldn't want to pay as much next year.
4. The renter could damage the home or something in the home could break, and he would need to put more money in the home.
And a few more....
At least one of the scenarios must have struck a nerve for him because when he saw our offer (again that was significantly less than what the rent-to-own guy was offering) he took it.
Good deal and great house for our buyer, and we solved the seller's problem.
If you know who the rent-to-own guy was send him to our office so he doesn't get out-negotiated the next time!
Labels: rent-to-own negotiation
Subscribe to Posts [Atom]
