Getting the Best Deal in a Lease Option Contract

When looking to rent to own a home, negotiating the best deal with the seller can save you thousands of dollars. It’s always important to read over rent to own contracts with the mindset that anything within reason can be negotiated. However, before you begin to negotiate you must have a solid idea of your financial situation, what you can afford versus how much you would like to pay and when you can move in. Get out a pen and paper and work out the numbers so you can figure out your negotiation angle.

Do Your Research

Conducting internet searches to find prices of a variety of homes in the area you are looking to rent to own can give you a clear idea of what the housing market is like and what a reasonable or average price for a home is in that area. Some sellers offering rent to own contract deals will try raising your monthly payments just because they are negotiating a rent to own deal. If you know what the price of the home should be then you will avoid getting ripped off and have better grounds for negotiating a lower price. You can find out about foreclosed homes, sold homes and housing costs on your county clerk of the court website and on renting and leasing websites.

Approach the Seller with a an Amiable Attitude

Speaking with a cooperative and friendly attitude is a much more successful approach toward negotiation than an emotional or defensive attitude. The seller is typically more willing to cut down his price a bit to help out someone he thinks is goodhearted than someone he thinks is rude. When approaching the seller with a new price or deal, listen carefully and sympathetically to his response without agreeing to his stance. Do not argue with him, instead list your reasons for the price you are asking based on research and offer some of the positives he will have if he accepts the deal.

Withhold Information About Yourself

While indulging information about your family or pets may get you and your seller off to a friendly start it is important not to let her know too much. For example, if you plan on paying any upfront payments in cash, don’t let the seller know until the deal is sealed because she may not negotiate price if she thinks you’re in a solid financial situation. It is also important to never let on that you’re desperate to buy. If the home is the only one in your price range or it’s the house you’ve always dreamed of, don’t let that on. You’ll get the best deal if the seller believes you have several other options.

Choose Your Battles Wisely

When negotiating a rent to own contract it is important to choose only the most detrimental items to haggle. If you wish to change everything in the contract you may have better luck looking for another home. The more you want to change, the less chance you will have of changing anything in the contract because the seller may think you are trying to rip him off or aren’t serious enough about closing the deal.