I'm currently negotiating with a seller with a straight option deal. We both have an understanding that i am willing to give him a deposit to lock in a property and with that I have the first option to purchase. If i decide not to purchase the property or assign it to someone else i would lose my deposit. So, I need some inputs in regards terms. I want to know how much deposit should I give the seller for a 800K property? How long should I have the option for? 3 months, 6 months, 1 year ? I already added an additional term indicating if I pay 1k i can extend the term for like 3 months. Trying to use less money as possible and gain leverage. I have a few international buyers in line but just in case it falls out I still have time to look for other buyers.
a 30 day option should be sufficient time if you already have a buyers list.
$100 option consideration is all you need.
You could include in your option contract that you will pay an additional $100 for a 30 day extension plus an additional 30 days to close.
Think about this... how much money does a real estate agent pay a seller to tie up their house for a SIX month listing agreement? Not a penny!
You do not need to pay a lot of money get get an Option.
I have paid less than $100 to get options on multi-million dollar homes. And I have paid $10 to get an option on old run down cheap junkers I planned to wholesale.
The price of the home does not matter. Your biggest option consideration is YOUR time and effort to find a buyer.
I have even had a seller pay me $1500 to take an option on their house - it was a split on the $ needed for marketing for a Highest Bidder Sale.
If you ask you get. If you don't ask, you don't get.
@Jackie Lange thank you for your input.
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