2,220,654
Click on the links below to view the answers for the same questions priviously asked in AR.
1. https://activerain.com/questions/show/54121/how-are-options-advantageous-for-real-estate-buyers-
2. https://activerain.com/questions/show/60027/how-are-options-advantageous-for-real-estate-sellers-
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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Kris Collis, Associate...
East Stroudsburg, PA
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Kathleen Daniels, Prob...
San Jose, CA
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Bob "RealMan" Timm
Minot, ND
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Nina Hollander, Broker
Charlotte, NC
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Kat Palmiotti
Kalispell, MT
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Ron and Alexandra Seigel
Carpinteria, CA
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Bob Crane
Stevens Point, WI
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Anthony Acosta - ALLAT...
Atlanta, GA
5,230,119
Developers often use these - Developers write option Offers to cover their time to perform their Due Diligence, ascertain that water/sewer are available, run plat plans by county planning, etc. As they move through each step, they pay another option fee.
Good luck with your studies.
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John Pusa
Glendale, CA
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Anthony Acosta - ALLAT...
Atlanta, GA
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
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Richard Weeks
Dallas, TX
6,393,609
Good for tieing up a property.
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Anthony Acosta - ALLAT...
Atlanta, GA
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
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Debe Maxwell, CRS
Charlotte, NC
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Bob Crane
Stevens Point, WI
3,345,091
I wish you all the best with your real estate studies.
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Bob "RealMan" Timm
Minot, ND
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Debe Maxwell, CRS
Charlotte, NC
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Anthony Acosta - ALLAT...
Atlanta, GA
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Kathleen Daniels, Prob...
San Jose, CA
2,390,620
I LOVE the option to tell you that your RE school instructor sucks at what he/she does and for you to post anonymously tells me you are two peas in a pod.
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John Pusa
Glendale, CA
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Debe Maxwell, CRS
Charlotte, NC
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Kathleen Daniels, Prob...
San Jose, CA
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Anthony Acosta - ALLAT...
Atlanta, GA
5,583,278
I like Anthony Acosta - ALLATLANTACONDOS.COM answer.... good guidance for you....
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Debe Maxwell, CRS
Charlotte, NC
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Anthony Acosta - ALLAT...
Atlanta, GA
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Bob "RealMan" Timm
Minot, ND
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Nina Hollander, Broker
Charlotte, NC
1,196,798
Got here late. You have received your answer(s)
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Debe Maxwell, CRS
Charlotte, NC
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Kathleen Daniels, Prob...
San Jose, CA
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Anthony Acosta - ALLAT...
Atlanta, GA
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Bob "RealMan" Timm
Minot, ND
1,311,397
Options can be of value when a developer wants to tie up a property when doing due diligence to see if it can be developed.
Some buyers use an option to obtain the right to live in a property on a rental basis and buy it later when they can afford it or their credit is better.
I am sure there are other uses for options.
I have never had a transaction that involved an option.
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Debe Maxwell, CRS
Charlotte, NC
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
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Bob Crane
Stevens Point, WI
7,836,419
Options are handy when rezoning is needed.
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
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Debe Maxwell, CRS
Charlotte, NC
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Bob Crane
Stevens Point, WI
2,781,173
Options are tools to be wielded by the RE pros..
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
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Debe Maxwell, CRS
Charlotte, NC
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Bob Crane
Stevens Point, WI
5,104,931
What Anthony Acosta - ALLATLANTACONDOS.COM said. Asked and answered a gazillion times here in the Rain. And why does this question need to be asked anonymously?
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Kathleen Daniels, Prob...
San Jose, CA
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Anthony Acosta - ALLAT...
Atlanta, GA
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Bob "RealMan" Timm
Minot, ND
1,725,996
More choices
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Debe Maxwell, CRS
Charlotte, NC
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Kathleen Daniels, Prob...
San Jose, CA
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Bob "RealMan" Timm
Minot, ND
1,556,633
Locks in price, and that is it.
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Kathleen Daniels, Prob...
San Jose, CA
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
5,216,509
Good for vacant land acquisitions when rezoning is necessary or for commercial property where a change of use is required by the buyer.
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Debe Maxwell, CRS
Charlotte, NC
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
1,712,676
Depends on what the purpose is.
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Debe Maxwell, CRS
Charlotte, NC
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
4,882,805
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Debe Maxwell, CRS
Charlotte, NC
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
1,622,432
In an option contract, only the seller is bound. The buyer is not required to buy and has time to decide and make all necessary investigation to make their decision. The buyer can ultimately decide not to exercise the option to buy ( even if that would mean loose their collateral, commonly between 3% and 10% of the property's market value at the time of signing a contract).
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Debe Maxwell, CRS
Charlotte, NC
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
1,543,823
Having more than one home to choose from before a buyer buys are options too.
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Debe Maxwell, CRS
Charlotte, NC
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Bob "RealMan" Timm
Minot, ND
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Doug Dawes
Topsfield, MA
5,772,575
Answered many times, see Anthony Acosta - ALLATLANTACONDOS.COM answer. A
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Bob "RealMan" Timm
Minot, ND
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Nina Hollander, Broker
Charlotte, NC
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Doug Dawes
Topsfield, MA
2,071,025
No idea
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Valeria Mola
Sunny Isles Beach, FL
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Evelina Tsigelnitskaya
Sunny Isles Beach, FL
1,598,452
No idea.
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Valeria Mola
Sunny Isles Beach, FL
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Evelina Tsigelnitskaya
Sunny Isles Beach, FL
900,128
If you're not ready to buy, for example, for whatever reason, you might be able to negotiate a rental with an option to buy at some point. Many details wouls have to be spelled out, but basically gives the buyer some flexibility.
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Bob "RealMan" Timm
Minot, ND
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Debe Maxwell, CRS
Charlotte, NC
1,502,998
Anthony naild this. But this question still violates the T&C of AR.
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Bob "RealMan" Timm
Minot, ND
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Debe Maxwell, CRS
Charlotte, NC
289,607
4,160,899
Many good responses.
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Bob "RealMan" Timm
Minot, ND
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Debe Maxwell, CRS
Charlotte, NC
5,868,554