Handling Lease Option Objection with Selling Price

"I must get my asking price or I'm not selling"

Every lease option investor will hear this objection from a home seller at some point during their lease option investing career. Probably one of the most common challenges is getting the seller from "La-La Land" to reality!

Sellers usually think rigidly about pricing - they have a specific figure in their head and they don't want to budge from that.

First you need to verify that their asking price is within true market value, not just for right now, but for where you market is likely to be at the end of the lease option period. This is particularly true for declining markets. The best way to do this is do get accurate comparables for the home.

The deal must be a win-win-win for you, the lease option seller and the lease option buyer. If the seller's asking price is too far out you'll need to show them the comparables and try to get them to acknowledge reality.

The most important thing to keep in mind when dealing with a seller who is fixated on price is to remember that you have a lot of other terms you can negotiate to still make the deal work for you. Just make sure the seller has enough equity for the deal to work.

Give them their price, but make sure the option period is for a long time and get a high dollar amount on your monthly option credits. If they don't want such a long lease option term than make sure your monthly payment is low (with full option credits) so that you can generate a high monthly cash flow.

Too many investors turn down a deal flat out if the seller's price won't work for them. Just remember that you have plenty of choices with other terms when putting together a lease option deal.

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