Market price now or when purchased?

9 Replies

When you are doing wholesale lease options and are offering the seller market price. When the tenant/buyer closes on the property will it be the market price at the time of signing the agreement or the market price when they actually buy it. For example after two years of renting to own it?

@Natalie Mendoza   That is correct.  The option to purchase price is set at the beginning of the deal.  Both parties are aware, or should be aware, that real estate markets are fluid and prices fluctuate, creating the possibility the value at the time the option is exercised may be higher or lower.

Direct them back to what they're getting. If you're solving their problem, that should be what they ought to care about. If they want to take a chance and hold it to sell later, that is always an option they have. But there's a reason they want to sell today.

If the seller is worried the property value may increase, they're letting you know early on they're greedy and not motivated. You might want to burst their bubble and remind them that values decline, as well.  And with the Consumer Price Index released today showing the highest rate of inflation in 13 years, that's a very likely possibility.  Don't chase sellers, Natalie.  Remember, you're looking for motivated sellers.  Don't be a motivated buyer.