Advice on an Option Fee?

[Cody Meyer]

Hi all, I'm moving to Waco, Texas soon and I'm looking at a few different properties. One of which is a multi family unit. The multi family is being offered with an option fee and since I'm new to all of this I vaguely understand how they work. I assume you negotiate a purchase price, pay the option fee, move in for X amount of time, and at the end of X amount of time, purchase at agreed purchase price? Let me know if I have that right. My big question is, would you work with a real estate agent before putting down the option fee and moving in? Although you're not buying the house at that time you are still negotiating a price. And honestly I've only been to the area in which I'm moving a few times, never been to the area in which the property is in. No matter how many times you walk the neighborhood on google earth it's no comparison to being there and living it. A real estate agent could be beneficial in many ways, like knowing the area much better than I do currently and even being able to vaguely tell me if its a decent deal. Keep in mind when I make the move I'd prefer to be moving directly into the unit. Any advice is appreciated! I'll absorb as much knowledge as you can offer!

[Steve Vaughan]

I would probably rent for a little bit as I scoped things out.  Rushing into an option arrangement may be a little hasty, IMO.

So this is just an option to buy?  Not a master or lease with that?  How long is the term?  2 years? 30 days? 60 day options are common with developers and land, etc is why I'm asking.

 I'd rent while I figured out these nuances of that market. It would be worth it but probably better than becoming texas toast right from the get-go.  Good luck @Cody Meyer!