Joseph44 0 Report post Posted January 14, 2009 Hi, all. 1st post in very long time. Question: when doing a non-exclusive option where you're allowing the seller to keep his sign up to sell, how can you negotiate a puchase price with the seller to make a profit? Hypothetical: $175,000 his sale price, how can you negotiate less so you make a profit? What am I missing? Thanks, and have a great day!! Share this post Link to post Share on other sites
<Steve> 82 Report post Posted January 14, 2009 I realize that some are looking into non-exclusives, but I am not a fan. If I am marketing the property at my expense, who's to say that if the seller's finds a buyer it is from my marketing. Also, it seems that if a seller does not do a exclusive, I question their motivation to working with me anyway. That's just me in general. But I guess if you have a really good relationship with the seller it can work well. Hi, all. 1st post in very long time. Question: when doing a non-exclusive option where you're allowing the seller to keep his sign up to sell, how can you negotiate a puchase price with the seller to make a profit? Hypothetical: $175,000 his sale price, how can you negotiate less so you make a profit? What am I missing? Thanks, and have a great day!!Seems like with a non-exclusive the seller can do what ever they want? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 15, 2009 Hi, Joseph. Welcome back! It has been a long time, indeed! I'm not quite sure I fully understand your question. But when doing a Pure Option, negotiating a purchase price is the same as negotiating a price in any other deal as the buyer. Obviously you want the lowest price possible.For example, let's say you negotiate a price of $160K for a 90 day option period. But it's nonexclusive, so the seller can continue to try and sell while you do likewise. A month later you find your buyer and so you exercise your option to purchase. You can either do a double close if the spread is big enough to make it worth the trouble, or you can assign your option for a fast assignment fee. The seller has his house sold at an agreeable price, and you made your money from the end buyer.If the homeowner were to find a buyer first, since your option is nonexclusive, your option becomes null and void and you move on. Like Steve said, it's always better to have an exclusive deal to protect your interest, but sometimes you need to be flexible to get the deal. You decide if the deal is worth giving up some degree of control. Share this post Link to post Share on other sites
Joseph44 0 Report post Posted January 15, 2009 Thanks Michael C for the warm welcome,I love your answer I thought it was terrific I guess I have been away too long.This is still a good place to learn and I'm always learning.Thanks and have a great day!! Share this post Link to post Share on other sites
