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In Real Estate there has historically been different types of valuation methods: appraisal value, market value, judicial value, forced sale-cash value, forced sale-terms value and now, there is option value.
Option Values
If you own real estate, you might not realize that your property is actually worth more than you think it is. Most people think that a property value is just what someone will pay you for it. There is one additional item that has value to any real estate and that item is called its option value. An option value is the amount of money somebody is willing to pay a property owner for the ability (but not the obligation) to purchase the property owner's real estate.
Once you know the option value of your home, you are free to do what you like with your option. Some real estate owners might be interested in realizing some of the cash out of the option value of their home. This is done by selling the option to buy their home to an option investor (optionee). The best part for the real estate owner is that selling the option to their real estate does not mean that they must transfer title to the new owner and walk away immediately. An option sale simply means that the option buyer has the option (but not the obligation) to purchase your real estate at some point in the future at whatever terms the real estate owner and the option buyer agree to. The very best part is that the real estate owner has just been paid cash (option payment) for selling the option to the option investor.
Visit the Option Value Institute to learn more about options in real estate and what you can do with them.
OptionsEquities.com
What does optionsequities.com do?
In exchange for a fee paid to a real estate property owner (option payment), we obtain the option to purchase the real estate by way of an option agreement.
What is an option agreement?
A legal document between two parties that gives one of the parties the option (but not obligation) to either purchase or sell an asset, at an agreed upon price by or before an agreed upon date. An option agreement is normally accompanied with an option fee that is payable to the person who is granting the option.
What is the benefit of an option agreement in real estate?
For property owners an option agreement enables the owner to get cash just for giving another person the option (but not obligation) to purchase their property. If the property is a home, the homeowner still owns the property and lives in the home normally. So long as the option is not exercised by the optionee (the person who has the option to exercise the option - buy the property), the home owner (optionor) has the right to do whatever they want in the property. They can sell it, renovate it, paint it, have parties, pay property taxes, pay insurance, call the plumber, repair the fence, raise a family, do whatever. It's still the property owner's house. The best part is that the property owner just received cash simply for giving another person the option to purchase their home.
For property buyers an option agreement enables the buyer to pay money to a property owner for the option to purchase the property at some time in the future pursuant to the terms of an option agreement. The benefit for the buyer is that they are able to secure the option to purchase a property at a desirable price so that if the option is exercised, the option holder (optionee or property buyer) can crystallize an immediate and possibly substantial profit.
Can an option be cancelled?
Yes. If you are a property owner and have given the option to another party to purchase your property by way of an option agreement in exchange for you being paid an option fee and suppose you have decided that you no longer want to have someone else have the option to purchase your house by way of an option. Pursuant to the terms of an option agreement, you may have the option to cancel the option so long as you pay an option cancellation fee. The option cancellation fee is an amount that would be agreed upon at the time your option is negotiated.
Can you sell your home even after you have sold the option to the home?
Yes. Depending on your option agreement, you are free to sell your home to anyone for any price. Once you sell you home, all you have to do is pay the option investor their cancellation fee and pay whatever registrations you might have on title (mortgages, home equity credit lines, liens or caveats) and keep the remainder of the cash.
What is the option value of my real estate?
The option value of your real estate is contained in an Option Value Report. OptionsEquities.com relies upon option value reports prepared by a Qualified Option Valuator who is a member-in-good-standing with the Option Value Institute. Although the cost of an Option Value Report is borne by the person seeking to sell an option, only Accredited-Class® option investors are permitted to order an Option Value Report.
Customer Support:
Have you sold an option on your real estate with OptionsEquities.com?
Go to www.myoptionagreement.com (LOGIN REQUIRED) in order to log in to your property vendor (optionor) account.
Have you bought an option from OptionsEquities.com?
Go to myoptioninvestments (LOGIN REQUIRED) in order to log in to your property buyer (optionee) account.
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