Buying on options

[Jacque]

If I had my eye on a property that I thought was suitable for future dvpt (townhouses, units) I would think that taking an option out on it for the 12 mths research I'd need to do (to obtain DA) would be a good idea. All I'm up for is the cost of the option fee with no holding costs.
For those of you out there who have done these, what tips can you pass on to get the owner to take out an option to sell? Especially for one whose house isn't actually on the market
I imagine a large option fee would appeal...
Any tips appreciated

 

[jassep]

Hi Jacque,

Look, I haven't done one of these, but I would imagine the biggest carrot in the whole thing is to offer a reasonable amount, say 1% of full retail value, as your consideration and then to EMPHASISE that NO MATTER WHAT, they get to keep that money! (barring bad faith on their part, of course!) ;o)

I could see that a RISK FREE $3-5k would be a nice incentive... ;o)

Also, if you can really see value in doing this, offer them, say 1% of the eventual equity/$$$ you make from the deal going to completion. But emphasise, that the only money they WILL make is the upfront consideration.

Just some random thoughts I hope help...