Why You Must Negotiate a Fixed Purchase Price at the Time You Buy the Option

Whatever you do when negotiating a real estate option, always insist that your real estate option agreement include a fixed purchase price for the property being put under option. And never agree to pay a purchase price based on the property's appraised value at the time the option is exercised. Doing so would defeat the whole purpose for using real estate options. After all, it would not make any sense financially to buy a real estate option without first locking in the purchase price of the property under option. As far as I am concerned, anyone who is foolish enough to buy a real estate option without knowing the actual purchase price of the property deserves to lose money! I once had a property owner, who I later found out was also a Florida licensed real estate broker, try to talk me into signing a one-year option agreement that included a clause stipulating that the purchase price of the property would be based on the property's tax-assessed value at the time the option was exercised, plus an additional $40,000. Needless to say, I told this guy what he could do with his cocka-mamie property valuation formula.

Real Estate Planning And Prosperity

Real Estate Planning And Prosperity

Entrepreneurs go against the flow. You've a business idea. Lots of individuals have business themes. The difference is that you, the entrepreneur, take action. Realty investors are the same.

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