Pros and Cons of the Option

■ You've tied up the property at a fixed price.

■ You don't have to qualify for or obtain a mortgage. You also don't have to come up with a down payment.

■ You don't own the property, so you're not responsible for mortgage payments, taxes, insurance, maintenance, or repairs.

■ You've got a relatively small amount of cash tied up.

■ But the money you put up is at risk if you can't find a rebuyer and exercise your option. If you don't exercise your option before it expires, you lose your option money (the amount you put up).

■ If property values go down during the option period, you'll have trouble finding a buyer.

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