Alex 0 Report post Posted October 11, 2007 Hi guys, I had a seller yesterday who was trying to sell his house but was open to renting it, yet he was not open to lease option because of the following reason. He said that if the value of the house was to increase, then he could potentially lose out. If the value of the house went down, then the tenant buyer would opt to buy the home. I tried to explain that the tenant buyer puts down an option consideration (which of course would go to me) which he would essentially lose out on if he decided to walk. Is there anything else I could have said to counter this objection? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted October 11, 2007 Mr. Youngblood, I would have asked the homeowner what rock he has been living under. This guy was concerned about runaway appreciation?? In this market?? Seriously, the risk he is facing is further declines, and by locking in a price now he will be ahead of the game in a year. And that's exactly what I would have told him. Share this post Link to post Share on other sites
Alex 0 Report post Posted October 11, 2007 Mr. Youngblood, I would have asked the homeowner what rock he has been living under. This guy was concerned about runaway appreciation?? In this market?? Seriously, the risk he is facing is further declines, and by locking in a price now he will be ahead of the game in a year. And that's exactly what I would have told him. Good point. Sellers in the DC area feel as though there is no where else to go then up, being a great job market and all. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted October 11, 2007 Mr. Youngblood, I would have asked the homeowner what rock he has been living under. This guy was concerned about runaway appreciation?? In this market?? Seriously, the risk he is facing is further declines, and by locking in a price now he will be ahead of the game in a year. And that's exactly what I would have told him. Good point. Sellers in the DC area feel as though there is no where else to go then up, being a great job market and all.Uh huh. Florida has one of the strongest job markets in the country and one of the lowest unemployment rates. But prices are falling like Michael Vick's endorsement deals. Share this post Link to post Share on other sites
dan332 0 Report post Posted October 11, 2007 Mr. Youngblood, I would have asked the homeowner what rock he has been living under. This guy was concerned about runaway appreciation?? In this market?? Seriously, the risk he is facing is further declines, and by locking in a price now he will be ahead of the game in a year. And that's exactly what I would have told him. Good point. Sellers in the DC area feel as though there is no where else to go then up, being a great job market and all.Uh huh. Florida has one of the strongest job markets in the country and one of the lowest unemployment rates. But prices are falling like Michael Vick's endorsement deals. Unbelievable.. I just had a potential seller ask me the same thing.. ie what if the property appreciates.. "I am concerned I may be losing out on the back end" !!. I told him if he locked in todays price and they actually bought after 12 months he should thank his lucky stars. Maybe I should have asked hm for a fee for the right to cancel the option, seeing he is so bullish! Share this post Link to post Share on other sites
GetErDun 0 Report post Posted October 12, 2007 Even if he does loose out on the appreciation that "surely" will happen, remind him that he will be SAVING a huge amount of cash by not having to sell realtor fees, closing costs, etc. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted October 12, 2007 Even if he does loose out on the appreciation that "surely" will happen, remind him that he will be SAVING a huge amount of cash by not having to sell realtor fees, closing costs, etc. If you insist on being logical, the administrator of this board may have no choice but to ban you. Share this post Link to post Share on other sites
Jonathan RexfordFL 8 Report post Posted October 12, 2007 Even if he does loose out on the appreciation that "surely" will happen, remind him that he will be SAVING a huge amount of cash by not having to sell realtor fees, closing costs, etc. Well regardless on who pays the fees the fee will be paid. Either they will pay the fee to a realtor or they will pay the fee to the market place. But it will be paid. Someone has to market the home. That cannot be avoided. If you use lease option to market the property there is a cost that is directed to that purchase. Share this post Link to post Share on other sites
