I am guessing that you want a three year lease option and the property owner is only willing to give you a three year lease at $1300 per month plus a $1200 security deposit but will sell the property to you at the end of your lease at a price to be established by appraisal at the time.
What is the market rent for the house? How much is the house worth today?
If the market rents are $1300 per month or higher, why should the owner give you a rent credit when the owner can rent to anyone else on a straight lease for $1300 per month. Now if the market rent is only $1000 per month, then you have an argument in your favor for a rent credit.
In many areas of the country, home prices are still falling. In three years, the property may be worth the same as it is today. There is a chance if your area has high foreclosure activity for the next couple of years, the appraisal will come in even less than today’s market value.
Of course, after renting for a couple of years you may decide that the house is not for you after all or life events dictate that you have to move. I would not be too concerned that the owner is not willing to lock in an inflated sale price for the property for the next three years. It may just turn out that the seller did you a favor.
Why are people so greedy and hard to deal with. - Posted by Albertha
Posted by Albertha on August 04, 2009 at 10:57:07:
Here’s the deal. That there is no deal here. I’m finally getting to go into a home that I can eventually own and buy out. Potential seller says no rent credit. Now that peeves me some because at the end of the 36 mth period I will have dropped some S48,000K into the house. I am very desperate for this house because I’ve been trying without success for a very long time now. I don’t like to be gouged though. Do you think once the seller realizes that I am a very trustworthy person that she may give me a rent credit? Also, she wants to sell at fair market value when I buy out, don’t want to set price now. What if when the time comes and I can’t get financed. What then? I guess I got to walk…right? Is there anything I can do right now to make sure that I will be successful like maybe get into the real estate business to make more money? Get a second job? I guess that is one that I have to answer. This seller seems to be not real knowlegeable when it comes to unconventional deals very insecure. putting this together is very hard on the nerves. Any advice or suggestions would be appreciated. I really felt like telling her to take a hike. Maybe I should have.
regards