Option consideration fee

6 Replies

How much do you typically ask for an Option Consideration Fee?

3% if Optionor / seller/ assignor.

I try to 'buy' with 1% as an Optionee but will do more if makes sense.

Thank you. A Guru has advised my business partner to ask 5-10% up front from a tenant/buyer. That seems excessively high to me.

Originally posted by @Amy Clark :

Thank you. A Guru has advised my business partner to ask 5-10% up front from a tenant/buyer. That seems excessively high to me.

 That is high, Amy.  So high in fact, there may be an implied right of ownership through a disguised sale.  

Some gurus will also say to put in the lease that the the TB has to handle all repairs and maintenance.  If you force them to act as an owner, they will be seen as one. 

There is also bad info out there to inflate the purchase price. 

Just don't get greedy. Good luck and keep researching!  Lots of good info here on BP.  

Yes I've spoken with several potential buyers and they are out off by the high fee. I probably could have had a buyer had it not been so high. Need to rethink and keep reading.

Are you leasing your properties in a nice, higher end neighborhood?

Yes it's a nice new neighborhood with lots of new homes still being built. Community has lots of amenities - pools, skate park, fitness center, neighborhood schools, etc.

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