Posted by Bill K. (AZ) on May 03, 1999 at 14:25:26:
Stevie,
I justify it by letting the buyer know that I am essentially taking the home off of the market while he qualifies for the loan. Hence, he has the exclusive right to purchase the home during the term of the lease. The option consideration makes it worth my while to do that.
In addition, I haven’t heard of NOT crediting the option consideration to the purchase price. So, I’d have a harder time justifying that one.
Bill K. (AZ)
How do you justify Option consideration to your buyer? - Posted by Stevie
Posted by Stevie on May 03, 1999 at 14:19:36:
Wondering how you guys overcome objections regarding the demand for a 3-5% Option consideration (deposit) when Lease optioning a house.
I’ve had sellers balk at asking for such a high “deposit” especially when it’s not going to be credited toward the purchase price of the home.
Thanks,
STEVIE
Not credited - Posted by Sean
Posted by Sean on May 03, 1999 at 17:08:58:
Well, if it wasn’t going to be credited towards their eventual purchase it would need to be justified by the house being underpriced by 3-5 percent.
Confusion. - Posted by Redline
Posted by Redline on May 03, 1999 at 14:41:16:
Stevie,
You’re confused. This option considerations IS credited towards the price of the home IF they eventually excercise the option! If they DON’T, then it is NOT refundable. There’s a difference there. There should be no objection there because the people you’re wanting (usually) should have NO intentions of NOT excercising!
RL