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Looking at property that would be great for a highest bidders sale. For those who had done several a few questions: after using the option and marketing agreement Jackie Lange suggests in the Highest Bidder Manual upon acceptance of a bid by the seller do you enter into a sales agreement with the seller that replaces the prior agreement. Reference was made to doing a simultaneous close if you didn’t want either party to know what you made on the transaction. How is this possible when the seller has to approve the bid.
Mostly I am interested in knowing the details of processing the transaction after acceptance of the bid as far as paper work goes. Thanks.
CARLTON,
It depends how you write the initial option agreement with the seller. You have to get your purchase price set with the option price for the seller. You then hold the HBS and essentially sell your contract to the new purchaser. A double close prevents the buyer-seller from meeting each other but all you need is the agreement of the closing attorney.
I’ve done several HBS and never had an issue with either the buyer or seller.
Yes it come along with the site and of course I read the material through before coming to the forum for clarification. Jeff Bowman explained the process: still I am still puzzled about whether you can assign the option contract or after you have gotten a successful bid you have to complete a sales contract with the seller to go into escrow. In fact when using an option contract for any real estate transaction upon exercise of the option is it customary to enter into a sales contract to close?
In the e book on highest bidder sales it stated you can assign the contract or use a simultaneous closing if you didn’t want to seller to know how much profit you made. I was wondering how this is possible as the seller has to approve the bid according to the material in the e book. Just need clarification on what contract goes into escrow and how it’s possible the seller doesn’t know how much profit you are making given they must approve the winning bid.
Carlton,
Contracts (and Option is a contract) are assignable unless the contract says it’s not assignable.
When I give an Option, rarely do I allow it to be assignable. When I get an Option, most of the time it is assignable.
Another exit, instead of assigning the Option, is to exercise the option, buy the property, then sell there property to your buyer.
Bill Cook
770-815-8727PS Our Power of Options 2-day seminar is June 24 & 25, 2023 via zoom. Go to BillandKimCook.com is interested in learning how to make Options sing and dance.
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