Posted by rod on July 10, 2002 at 19:06:12:
Were can we get straight option agreements?
straight option - Posted by diana
Posted by diana on July 07, 2002 at 17:46:10:
I keep seeing “straight option” lately. Does this just mean getting an option to purchase a property for a certain price.
Also, does this mean the owner can still continue to sell it to someone else when a better offer is received?
What happens if I get a “straight option” on a property, does it have a certain length of time on it? Do I ask to be able to show the property while I have it under option?
Just need some clarifying here.
Diana
Re: straight option - Posted by Matt KY
Posted by Matt KY on July 07, 2002 at 18:40:06:
I keep seeing “straight option” lately. Does this just mean getting an option to purchase a property for a certain price. YES
Also, does this mean the owner can still continue to sell it to someone else when a better offer is received? THATS UP TO YOU AND THE OWNER. YOU SHOULD LET HIM KEEP MARKETING. ODDS ARE HE WONT FIND A BUYER ANYWAY.
What happens if I get a “straight option” on a property, does it have a certain length of time on it? YOU SET THE TIME WHEN YOU MAKE THE AGREEMENT. GET 3 MONTHS BARE MINIMUM. TRY FOR A YEAR.
Do I ask to be able to show the property while I have it under option? YES. PUT IT IN THE AGREEMENT. GIVE AT LEAST 24 HR NOTICE TO OWNER.
Just need some clarifying here. FIND A BUYER AT ABOUT $2K-$7K HIGHER, ASSIGN THEM THE CONTRACT FOR THE DIFFERENCE.
THATS THE JIST OF IT.
Re: straight option - Posted by JA - MIA
Posted by JA - MIA on July 07, 2002 at 21:46:22:
why would a seller agree to have his property tied up for months on a straight option? It’s basically, “I’ll see what I can do you Mr. Seller, without a true commitment”?
if i were a seller, i’m surrendering all future possibilites of a sale while someone else controls the offers.
as an investor, how do i approach this kind of seller? obviously, it’s a major win for me, as i have no earnest money to lose. why would a seller go for this?
thanx, joe
Re: straight option(clarification) - Posted by Lynn
Posted by Lynn on July 08, 2002 at 06:48:48:
Joe:
Your statement below:
"Why would a seller agree to have his property tied up for months on a straight option? It’s basically, “I’ll see what I can do you Mr. Seller, without a true commitment”?
“If i were a seller, i’m surrendering all future possibilites of a sale while someone else controls the offers”.
Now if you read the response below-it tells you plainly that you and the owner can both find buyers. The whole “straight option” process is negotiable. The owner still has the “right” to market his property if that is stated in your option agreement. However, if you fnd a buyer first, the owner has to honor the contract and sell to your buyer(PERIOD)!
Re: straight option - Posted by Houserookie
Posted by Houserookie on July 07, 2002 at 22:37:57:
Sellers will choose this route for a number of reasons. Some would rather help you and not big real estate companies. Some people just want out( like retirees ). Maybe they’ve had negative experiences with realtors? But the #1 reason why sellers write options is that they think you have special skills and knowledge that they don’t.
If you can give them reasons to believe that you know things that they don’t, they’ll sign the option.
Austin