Paul Weese, Steamboat Springs Broker and Outdoor Enthusiast (Colorado Group Realty)

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Rainmaker
6,966,338
Roy Kelley
Retired - Gaithersburg, MD

It is reasonable if acceptable by the purchaser.

Why don't you use a conditional contract that is subject to the zoning, etc. if the buyer is paying for the process.

Jun 04, 2018 02:05 PM
Ambassador
4,511,654
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Seems low to me but, I don't know what your market is like, Paul. 

Jun 04, 2018 07:17 PM
Rainmaker
571,917
Greg Large
ERA Real Solutions - Grove City, OH
A Tradition of Trust

reasonable would depend facts not included such as whether for the Buyer or Seller, and other factors, some as mentioned by Fred Griffin .  I think Barbara Todaro gave a detailed explanation why an option may not be considered the best path.

Jun 04, 2018 04:59 PM
Rainmaker
868,138
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

I wouldn't tie up a property for 2 months for  $1000.00

Jun 04, 2018 02:33 PM
Ambassador
2,604,703
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

    Will the option money apply to the purchase price?   

      Please explain, "dilapidated".  Do you mean junk, abandoned buildings, buried fuel tanks, EPA brownfield?   How much will it cost to get the land in shape for permitting?

Jun 04, 2018 01:52 PM
Rainmaker
2,100,602
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

You have many great answers here.

Jun 04, 2018 07:27 PM
Ambassador
3,071,241
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

after reading the comments, option is not what we use for that.  We simply do it with contingencies and protect our buyers EMD if they can't use the land for it's intended purpose.

Jun 04, 2018 07:18 PM
Rainmaker
1,135,646
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

As an optioner I couldn't see giving up some rights to a property for a total of 16 weeks for such a small sum. As an optionee, if I thought it would work, I'd be dishing out these deals left & right. I don't think I can ever remember anything less than 20% that came to fruition and I've done a bunch.  

Jun 04, 2018 04:08 PM
Rainmaker
4,244,779
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hmm note to self: ponder reasonable. 

Jun 04, 2018 03:27 PM
Rainmaker
4,433,184
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

This is virtually impossible to answer not knowing what dilapidated means, what the seller's interest is, demand for the property, etc. In 25 years I've yet to do any kind of option on a property purchase... I haven't found that sellers are especially receptive to option offers.

Jun 04, 2018 02:09 PM
Rainmaker
5,579,193
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

why is an option needed???

Jun 04, 2018 01:47 PM
Rainer
302,007
Don Baker
Lane Realty - Eatonton, GA
Lake Sinclair Specialist

Don't have enough information to make an informed decision.  

Jun 04, 2018 01:44 PM
Rainmaker
938,355
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Do you think it's reasonable? Not knowing anything about your market, it would be pretty hard for others to opine from the outside looking in.

Jun 04, 2018 01:42 PM
Rainmaker
1,346,863
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Whatever is customary in your market and the buyer will accept is reasonable. I know you want more, but we have not of the facts of the deal or your market.

Jun 04, 2018 06:19 PM
Rainmaker
536,432
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Tighten up those timelines.

Jun 04, 2018 07:57 PM
Rainmaker
1,178,943
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Many dilapidated lots sell more than empty clean lots. The last one I saw in the paper as national news sold over $1M.... A clean empty sold $200K less.

In our area cash 1 week closing. Want to back out you lose 10% EMD.

Jun 04, 2018 07:26 PM
Rainmaker
687,723
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

Not really

Jun 04, 2018 01:31 PM
Rainmaker
1,598,130
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

Something new I learned from old question! 

Thank you.

Jun 26, 2019 04:02 PM
Rainmaker
1,708,235
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Whatever is agreed to is reasonable.

Jul 04, 2018 11:20 AM
Rainmaker
5,264,612
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

We don't have options in Denver.

Jun 08, 2018 06:13 AM
Rainmaker
844,112
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Not enough information. Options could be written/structured in many different ways.

Jun 05, 2018 12:27 PM
Rainmaker
514,474
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

I would do a contract with an extended feasibility study to find out what the city/county agencies would allow to happen there. If the property was listed in my area, this would be expected.  If it's an unlisted property the seller may be thrilled to have something happening, unless they planned to develop it themselves. 

Jun 05, 2018 12:09 PM
Rainmaker
4,433,809
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Good luck.

Jun 05, 2018 11:18 AM
Ambassador
3,145,610
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

What is reasonable?

Beyond that, I do not see why an option would be necessary. 

Jun 05, 2018 09:26 AM
Rainmaker
878,686
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

I've used options in real estate successfully as an investor in the past...and I've got to say...I'm with Tammy Lankford, on this one. 

Jun 05, 2018 07:46 AM
Rainmaker
4,300,798
Richard Weeks
Dallas, TX
REALTOR®, Broker

Not enough details to answer

Jun 05, 2018 06:52 AM
Rainmaker
4,799,651
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

If it works for both parties it can be reasonable.

Jun 05, 2018 06:20 AM
Rainmaker
4,509,621
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

If the seller accepts it why not? Why does the buyer think this is a good offer? What are the problems and does the option money go toward the purchase price?

Jun 05, 2018 06:02 AM
Rainmaker
3,070,784
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Jeff Pearl nailed this one!

Jun 05, 2018 04:38 AM
Ambassador
4,316,065
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Paul Weese - checking other answers! Not good at this.

Jun 04, 2018 10:50 PM
Ambassador
5,698,959
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

All about supply and demand and what they buyer is willing to pay.

Jun 04, 2018 09:47 PM
Rainmaker
1,424,950
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Sorry, I don't do options so I can't advise.

Jun 04, 2018 09:04 PM
Rainmaker
3,986,000
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I use 10% as the option amount with a solid closing date

Jun 04, 2018 08:40 PM