– Negotiating with Renters for Lease Option

Negotiating with Renters for Lease Option

Negotiating with renters or tenants for a lease with option take some practice.

But it is about positioning…

USP

USP means unique sales proposition, what are you offering?

Decoding Tenant Buyer Positioning: A Guide to “Easy Acceptance”

Source: Excerpts from “Positioning Tenant Buyers For Easy Acceptance of Y.txt”

1. Introduction: The Art of Negotiation-Free Transactions

• This section introduces the concept of “positioning” as a means to secure favorable lease/option agreements with minimal negotiation.
• It emphasizes the shift from traditional home selling to a service-oriented approach focused on helping clients achieve homeownership despite financial challenges.

1. Perception is Key: Becoming the Indispensable Hero

• This section delves into the importance of shaping buyer perception to establish trust and confidence.
• It outlines a 3-step process for effective positioning:

1. Attract clients through targeted advertising.
2. Empathize with their situation and demonstrate understanding of their needs.
3. Present a clear and simple plan for satisfying their homeownership goals.

III. The Power of a Unique Selling Proposition (USP)

• This section highlights the role of a well-defined USP in communicating the distinct benefits of choosing your services.
• It provides an example USP focused on credit rebuilding, payment history establishment, and equity building.
• It stresses the importance of expanding upon the USP to address potential client questions and concerns.

1. Alleviating Buyer Fears: Guaranteeing Continuity

• This section addresses a critical buyer fear: What if they are unable to secure a loan at the end of the lease/option term?
• It presents a strategy for alleviating this fear by incorporating a “continuity program” that guarantees options beyond the initial term.
• It emphasizes the importance of reassurance and flexibility in dealing with client anxieties.

1. Showcasing Value: Leveraging B&C Lenders and Equity Building

• This section introduces the concept of working with B&C lenders who cater to clients with credit challenges.
• It explains how emphasizing equity building through higher monthly payments can appeal to both the buyer and the lender.
• It subtly sets the stage for future negotiation of extra payments framed as beneficial for the buyer.

1. Addressing Objections: Navigating Price and Payment Concerns

• This section tackles common buyer objections related to price and extra monthly payments.
• It provides strategies for handling price objections depending on market conditions:
• In appreciating markets:Highlight potential appreciation gains.
• In slow markets:Emphasize sale uncertainty and risk.
• It outlines approaches for negotiating extra payments, emphasizing flexibility and the importance of accommodating buyer budgets.

VII. Extensions and Conversions: Strategic Concessions and Profit Centers

• This section discusses negotiating extensions, advising sensitivity to client requests while maintaining control over terms.
• It examines conversions to owner financing as a closing tool and outlines key negotiation points:
• Price increase, additional principal reduction, interest rate, amortization term, financing period length, points/fees.
• It positions conversions as a potential profit center while emphasizing the importance of client comfort and success.

VIII. Conclusion: Prioritizing Positioning Over Direct Negotiation

• This section reiterates the central message of the source: Focusing on building trust and commitment through effective positioning reduces the need for direct negotiation of financial terms.
• It summarizes the 2-step positioning system:

1. Communicating a clear USP.
2. Alleviating buyer fears through continuity guarantees and showcasing value through B&C lender and equity-building strategies.

Overall: This source provides a comprehensive guide to positioning tenant buyers for “easy acceptance” of lease/option terms. It emphasizes a client-centric, service-oriented approach that prioritizes building trust and alleviating fears to minimize negotiation and maximize profitability.