Posted by Heidi W on December 21, 2001 at 11:22:03:
If you can help with the Option Help Needed post above, please reply to this post - so title makes sense. Sorry for the confusion.
hfwhite@san.rr.com - Posted by Heidi W
Posted by Heidi W on December 21, 2001 at 11:18:28:
How do OPTIONS work?
I live in a high priced area (San Diego) and I want to specialize in Lease/Options and Options. I’ve listened to the Ron Legrand techniques for both of these - but I’m a little confused about the Option side.
If someone has a house valued at $1M, but it’s been on the market for $800K and has not sold, how likely are they to entertain an Option for $600-650K from me? Will I need to ‘pay money/consideration’ for this option - if so, how much?
Assuming they accept my option offer, then I need to ‘agressively market’ this house now and try to get whatever I can over the option price within a set period - correct?
If the house is not taken off the market (i.e. - still listed with an agent) - then who pays the commission, should I find a buyer within the set time. Once I have a ‘bona-fide offer from a buyer’ - does the clock stop ticking - or do they have to go through qualification first?
I’m concerned about running out of time and losing my consideration money. I’m also concerned about revealing the ‘sales price’ to the seller. If I’m making $50-$100K on the deal - I don’t want them to know.
Have any of you ever done these types of deals? Any tips?
I start my advertising campaign Jan 1st - ready or not. Time to stop dreaming and start doing.
Regards,
Heidi W