Does anybody know how to work a straight option?

I got another call from one of my mailers today. It is the owner of a home in Cupertino, CA. It is an affluent area of Silicon Valley, and homes are still selling for more than asking price. A realistic comp for this home is between $860,000-$900,000. It was recently remodelled, and has permits to be scraped and rebuilt a newer home. That seems to be the trend in the older areas of Cupertino. They scrape the old home (most built in the 60’s), and build a new home. If rebuilt, it could pull upwards of $1.4.

The lady was willing to let me have it for $850,000. Not really a deal, but if I could get her to agree to an option for around $825,000, I think I could sell it FSBO relatively quickly and make an easy profit.

What all is involved with an option??? Contracts used, fees I may have to cover at close, etc?

Controlling a property via Pure Option is simple, really. I use a Pure Option Agreement, and negotiate the best price for an agreed to period of time. The key, then, becomes marketing for a buyer. But in the market you describe, it seems to be the difficult part is finding the deal. And you’ve already got that done.

What are your plans with the option? Are you going to double close or assign the option?