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Seller Objections To
Lease Purchase
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By James A. Gage
A large percentage of the mail I receive are
from people that complain that sellers don't want to do a
lease purchase, they just want to sell their house. Or
sellers come up with too many objections. My questions to
those individuals are:
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How soon after a property is listed are you
calling? If you are calling only 2-4 weeks after a house is
listed, sellers are not as interested. They still believe
they will sell their home.
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Are you following up on those sellers who say
they are not interested now? While right now they may not be
interested in lease purchasing their home, they might be six
months down the road. Remember you are not in this business
for the short term, but the long term. So be sure to follow
up with every call you make. Your follow up can take the
form of a call or correspondence. Personally, I like to send
a letter. It allows me to send a business card and tell that
person again how I can help them with my program.
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Are you building a rapport with the seller?
If you are just calling and asking if a seller wants to do a
lease purchase or not, you are NOT building rapport. You are
also not getting any information on that home at all. You
also can't do any follow up even if you wanted to. This is
why you need a telephone script. A good telephone script
allows you to build a rapport with the seller. It also gets
all the information I need to decide if I even want to do a
lease purchase on this property. I do not waste my time
going to look at property, or setting up a meeting without
having all the information about a property (physical,
pricing and financial).
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Are you telling the seller the advantages of
lease purchasing their property? That they will get their
asking price or even higher. That you have a large pool of
tenant buyers that you can have drive by immediately. That
these tenant buyers want to purchase their own home, not
just rent. That you can get them a higher monthly payment.
That you can get them get positive cash flow each month.
That they will also receive non-refundable option
consideration. That the tenant buyer will do all minor
maintenance. That it is still their property until the
tenant buyer exercises the option. That there are no Realtor
commissions, closing costs, etc.
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Are they objecting to lease purchasing
because they think they are getting a renter? It is YOUR job
to explain the difference to them between a renter and a
tenant buyer. Renters give a security deposit that owners
must pay back, put in a separate account (in most states).
Renters don't care about the property; it is just another
house, townhouse, condo to them. If something breaks or goes
wrong, it's the owners problem not theirs, and they won't
pay their rent until the owner fixes it.
Tenant buyers are giving them non-refundable
option money (a down payment). Tenant buyers are receiving a
rent credit each month based on their payment record. Tenant
buyers are responsible for minor maintenance. Tenant buyers
want to be able to have their rent credit and option money
applied to the purchase price of this home. They don't want
to lose out. They want this home to become theirs. They are
going to take care of this property like it was their own.
You can tell a seller that many tenant buyers make
improvements ( with their permission, of course).
So be sure you explain to the seller the
difference between a renter and a tenant buyer.
And remember, there are going to be some
sellers who just want to sell their home. Tell them you wish
them the best, that you are here for them if it doesn't work
out, and go on to the next seller you can help. There are a
ton of them out there, you just have to make the call !
"You are who you are and where you are because of what you
have put into your mind."
For more information or pricing please do not hesitate to
call or e-mail. I can be reached at (508) 595-9567.
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