Straight Option- What is it?
The option is a great way of selling and buying a real estate property. In this the seller sells the property to the buyer who in turn markets the property till he or she gets the property sold. The seller is then paid the price of the property by the buyer. The buyer here gets to have the profit that is the difference between hi buying and selling the property. The main advantage of this kind of agreement is that the seller is technically bonded by the option while the buyer is not but if the seller finds a buyer before the optionee does then the seller is released of any bindings there and then.
Advantages of using straight options
- The seller does not need to market the house
- There is no tenant
- The seller straight away receives cash on the sale of the property
- The sale is quick
- The buyer has no risks of capital as nothing is going from his pocket
- The more the price of the house the better are the gains
- If you are a novice in the field you get an idea of how the buyin and selling of the property takes place you get the feel of the market and you can decide if you really want to enter the market.
- There is no commitment that you have to make for a very long time. You have option to back out at any point in time.