Options
Hello All, I think I have an opportunity to do an option. I've been reading on the subject and still do not fully understand it all. Here is a possible situatuation:
I have an opportunity to buy a brand new home from a builder via a Agent. I want to see if they will allow me a 60 day escrow and during that time find another buyer. The house will be done in about 4 weeks.
When I find another buyer then what do I do? 
Of course the whole purpose of this is for me to get some quick cash by selling the property at a higher price. I believe I can at least make a 10k profit.
Where and how does the agent fit into this scenario?
How do I go about a double close?
Any help will gladly be appreciated!
Thanks,
MArquish
The agent will submit your offer to the builder. ON new homes there is usually not only a commission, but a bonus. I would not only ask the builder to pay closing costs, but ask the realtor to share his bonus with you. (It doesn't hurt to ask)
Although I do have an open mind, I would look closely at new construction spec homes that are listed with a realtor. They are typically priced at retail market levels and make may make it difficult to flip to someone else if that is indeed true. Make sure you know the market and your comps for the area are correct.
Good luck!
I agree with myfrogger...
'tis much easier to use options on SFHs with motivated (even semi - motivated) sellers.
Jason
[addsig]
Hey guys thank you for the great advice and rapid response. I'll keep you guys in the loop. I'm meeting with the builder personally this week.
Definitly check the comps and leave yourself an "out".
..once you find your buyer you can do an assignment of contract if your state allows this. But take heed, because your buyer will know how much you're making off of him and will most times frown upon this. Or you can just put the buyer under contract and do the double closing. You will need to find a title company that's able to do the double closing; all title companies are not created equal. Good Luck!
Not sure what it's like where you are investing, however when I bought my home from the builder, it was a condition of the sale that as long as they still had homes for sale in the development, they had first right of refusal to buy back my home for my purchase price should I decide to sell before they had closed the development.