Fair Price To Pay For The Option?
I am in the process of rehabbing a home and my realtor has found a couple that really want to buy the property. The problem is they had some credit problems a few years ago and are unable to obtain financing at this time. I have offered to lease option the property to them. My question is how much should I ask for the option rights to the property? They would like to set the option time for 4 years. That seems like a long time to me. I live in Massachusetts where housing prices are outrageous. I would love to do this deal, but I would really like to maximize the upfront money so I can start a new project. Any advise would be great. Thanks
Thanks for the quick reply. My realtor told me they have $30,000 they can use as a down payment. The reason she knows this is because these people were trying to purchase this house before me. The only reason I was able to find this deal was because it was owned by the Veterans Addministration and they were not excepting tradittional financing. So that took a lot of people out of the running. However, these people really wanted this home, even more so now that I am rehabing it. I also told my realtor I would give her $1000 if these people signed a lease option, which she agreed to.