I have a prospective buyer interested in a Lease-Option on my property but we’re having a hard time coming to terms due to differing goals. He wants to keep payments down and have a long purchase period. I of course want to make it worth my while to enter into a lease option. I’m looking for advice on how we can somehow come together:
My desired terms:
$5k down (applied to down payment if purchased)
$1495/month with $200 rent credit
1-year purchase at $375k
$5k down and then an additional $5k down at 12 months and 24 months (all $15k total applied to down payment at purchase)
$1100/month with no rent credit
3-year purchase at $365k
Btw, market rent is $1195-$1295. Home value based on comps is right in the ballpark of where we are (~$370k) and home values in the area are probably still dropping at this time.
(1) The length of the option period. I would like to put in a graduated purchase price depending on how long it takes to exercise but he’s not going for that.
(2) Sub-market monthly rent (low monthly is very important to him).
Any thoughts on how to structure while meeting both of our goals?