Im looking into the idea of a non-exclusive option to purchase. I would give the seller the standard Escrow check for say $500-1000. The seller however still has the right to sell the property, but in that instance the Escrow funds would be returned to me… but if he doesnt sell it and I do not exercise the option to buy, I forfit the check. I would be listing the property on the MLS in the meantime (im a realtor). I could also have him sign a non-exclusive (Exclusive Agency) agreement that says he can sell the property on his own to any NON-agent, otherwise he owes me a commission. This will give me more assurance he doesnt steal my buyers. Can you see any flaws to this system? If not Im going to set it off
F-Props I am not quite sure that you are trying to accomplish…If you explain a little that would be great I think I have an idea on what you are trying to do…
I’m not sure why you are giving the seller up to $1000.00 for escrow and risking that amount if you don’t exercise the option. I have an option to purchase a property right now. I’m listing it on the MLS, giving the info to area investors, making up neighborhood flyers all in an attempt to find a buyer.
I gave $10.00 earnest money. I’ll lose $10.00 if I don’t find a buyer in the next 60 days. Why? Because they are desperate to sell and don’t have the equity to hire a Realtor.
be careful , being an agent and not keeping a arms lenght transaction… if you get non-exclusive (Exclusive Agency) agreement you are representing them for their best price and interest… Be sure to CYA with disclosures. you dont want to be seen as taking an unfair advantage risking your license if they complain. Be sure not to act as a net listing either… this is why as an investor it is best to keep your distance or buy in a LLC… just be careful when your supposed to be representing them… IMO…
I was wondering do you sign an purchase agreement at the same time when signing an option agreement or do you get the purchase agreement sign the day you excerise that option.
It sounds to me like what you want is a right of first refusal and not an option.
You don’t pay for right of first refusal. You set the price and the agreement is that you get the house for that price, but if someone else comes along with money to buy the house, you must buy it immediately, or the next buyer can have it.
Did you ever work these into your strategies? I’m curious, why the deposit if the contract is non-exclusive i.e. not taken off the market for the seller? There would be no risk to the seller no?
As a realtor your probably used to complicating your life with rules and regulations and overthinking everything & enuf paperwork to choke a stump grinder…
I suggest getting the property locked down with a purchase contract, for 30 days. If you cant sell it in that time it prob wasn’t a great deal.
Why screw around with a non exclusive contract? The sellers you want are motivated and willing to sell you the house with a $10 earnest deposit and your confident smile and listening skills.
But if your trying to sell a house at or near full value, just list it.
Do not risk 500 buks, I’ve been there.
