In the previous post we discussed the idea of negotiating an extension period for your rent to own home.
The article for extending your option period is discussed here.
Some rent to own agreements call for a sizable fee to be paid if you choose to extend the option period. Remember that everything is negotiable and in a buyer’s market you have a good chance of negotiating a reduced fee.
What Amount Should I Pay?
You should try to negotiate a fee of $100 or less to extend your option period by 12 months. We would consider that a “well negotiated deal!”
Remember though, this fee will not have to be paid unless you NEED it toward the end of your lease option period.
So don’t get overly caught up in negotiating numbers to the point you choose not to DOCUMENT some option extension and fee in your paperwork.
The key things here are:
- Agreeing on an extension
- Documenting accordingly!