How long can I keep a house under contract so I can find a buyer?

Question

I found a house that I might want to try and get under contract and then wholesale.  About how long do I have to find a buyer from when I get the house under contract to when I the buyer is going to want me to close?  I want to make sure that I have ample time to try and find a buyer.  If I don't find a buyer I will just give up my earnest money and walk.  Thanks for the help!

Demos Loizides · Answer

There are 3 parts to a contract:
- an offer
- an acceptance
- consideration

Most everyone understands the offer and acceptance. Consideration is basically where I don't get something for nothing. Let's see, if I use an option to purchase agreement with no earnest money deposit, am I getting the contract for nothing?

No. My agreement says I will be marketing the property to find an end buyer. There's time and effort put into the marketing. I'm saving the seller 6% (in most cases) on Realtor commissions. They are saving $6,000 for every $100,000 of agreed upon price.

I'm getting a contract for a specified period of time in exchange of marketing the property and saving the seller thousands of dollars in Realtor commissions. I'm getting something for something.

I've even seen the sales price on some contracts, labeled as consideration. So basically, unless the seller is giving me the property for $0, there's consideration.

It's all legal and everything's OK in the world.

Will Barnard · Answer

How long you have depends on how good of a negotiator you are (dealing with homeowners only - REO's are a whole different game).
I have seen option contracts for 90 days. If the homeowner is foolish enough to lock up their property for extended periods of time without an EMD, that is their loss and your gain.

Curt Davis · Answer

Are you trying to lock up bank REO's are FSBO homes?

If your working with fsbo its easy, you can lock up a home with little to no money down. If your dealing with a bank you will need a POF letter and a minimum of $1,000 in EM.

If DemosL is not putting down any EM he is most likely working with the actual owner of the home. Most home owners are not smart enough to ask for earnest money or actually make sure you are actually going to buy it and not flip it.

Demos Loizides · Answer

LeJon - although you posted the same thing several times, I will only give you one answer. Most contracts have a blank to put in the closing date. Just write in a date that is 45-60 days from the time you sign the contract.

LeJon Ratchford · Answer

LOL, Now come on I,m not that desperate for a answer. My computer kept stating bigger pockets server was busy. So Kept trying to post not realizing it was actually posting. Anyways I appreciate the responds.
LeJonR

LeJon Ratchford · Answer

I have a gentleman who is will to let me whole sell his property, but he does not want me to have it under contract forever in case I do not have buyer after a certain period of time. Say I get him to agree to let me have it under contract for 45-60 days how would I add this to the contract?
LeJonR

Brian Haskins · Answer

You can give your self as much times as you want and as long as the seller will allow. You can do 15 days, 30 days, or as long as you want.

Brian Haskins

Demos Loizides · Answer

Sheripha - You probably can't use an option to purchase agreement on bank owned properties. You usually have to use the Regional Realtor contract (the kind that kill a lot of trees). Their contract won't expire the way an option does. You usually don't have to put up a real EMD until several days after your offer is accepted. If you can't find an end buyer before for the REO, you can lose your EMD if you don't know what you're doing.

Steph Davis is a great person to speak to on this.

As for your question about needing a lawyer to draw up a contract where there's no EMD, I don't need one. That's for deals where the seller is not a bank.

Account Closed · Answer

I'm a newbie with a question: In contracting or optioning REOs and you put up EM; if your contract/option expires and you don't have a buyer, what happens with that EM...do you lose it?
Also, if you are doing the same deals with owners and no EM is asked, won't you need a lawyer to draw-up this contract?  What's their fee in these deals?

Thanks

Terry Royce · Answer

Don't you still need some amount of money on an option? Even one dollar?

To have the contract remain binding?

How long can I keep a house under contract so I can find a buyer?

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