Option to Contract or ?

[Mark Buskuhl]

I have a flip property on the market that has not brought anyone who qualifies conventional (FHA sweet spot $189k). The 91 day FHA flip rule doesn't expire until late September which means the contract can't be dated before then. There are other issues such as "love the house, hate the neighbor" that nearly every prospect has left for feedback. I want to get this gone as we are around 20 DOM now at a price point that should have multiple offers.

There is a buyer now who really wants the house, his agent and mortgage broker are all on board but I am trying to figure out how to structure the deal. The listing agent is my wife so don't expect her to solve this problem. A post dated contract is not good for him or me.

I am thinking more along the lines of an option to contract where he has the exclusive right at X date in the future to purchase the property for Y amount subject to all the other terms and conditions of the TREC 1-4. He pays me a non-refundable option fee ($2000) which is credited at closing should he exercise his right to contract at Y date. Guarantees him the right to buy the house and covers me from him changing his mind. Any standardized docs out there exist? I really don't want to pay an attorney $500-$1000.

I'm willing to get creative on this one as my backup plan was to just cancel the listing 30 days prior to the 91 day expiration and relist when it was FHA eligible while resetting the DOM clock at the same time. No one wants a 60 DOM sub $200k house.