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Rainmaker
1,052,211
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Option. Binds only the property owner, not the buyer or tenant. Usually secured with option money. They're under no obligation to purchase. They just have the right.

First right of refusal. Provides for a party, not always but often the buyer or tenant, to get first shot at a deal on the property should the seller decide to sell it. If a deal can't be made, or the buyer can't qualify, then their opportunity is lost.

Jan 23, 2018 04:10 PM
Ambassador
2,161,148
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Great answer from Candice A. Donofrio that doesn't leave anything to add.

Jan 23, 2018 04:24 PM
Rainmaker
5,583,278
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Candice A. Donofrio gave you the right answer....

Jan 23, 2018 05:44 PM
Rainmaker
1,543,833
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

I'm with Ryan Huggins - Thousand Oaks, CA and impressed by Candice A. Donofrio 

Jan 23, 2018 07:50 PM
Ambassador
2,684,109
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

  Candice A. Donofrio has the answer.

Jan 23, 2018 04:25 PM
Ambassador
5,230,130
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Two totally different addenda as Candice A. Donofrio so perfectly explained!

Jan 23, 2018 09:10 PM
Ambassador
6,393,609
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Candice explains it well.

 

Jan 23, 2018 04:34 PM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Jesus Henao - few good answers including one from Candice A. Donofrio.

Jan 23, 2018 08:28 PM
Rainmaker
5,217,017
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Candice A. Donofrio gets the prize for the answer to this one!

Jan 23, 2018 07:54 PM
Rainmaker
1,502,998
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Don't use 'em

Jan 23, 2018 07:23 PM
Rainmaker
2,781,173
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

One secures a right to purchase at a future date and the other says the property cannot be sold without it being offered to you first

Jan 23, 2018 06:34 PM
Rainmaker
3,988,007
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I couldn't say it any better than our friend,. Options are no longer used much in my area.

Jan 23, 2018 05:42 PM
Rainmaker
2,220,654
Anthony Acosta - ALLATLANTAcondos.com
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Candice A. Donofrio has your answer. 

Jan 24, 2018 08:28 AM
Rainmaker
3,071,489
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Candice A. Donofrio nailed this one!

Jan 24, 2018 04:33 AM
Rainmaker
5,104,931
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

You have your answer from Candice A. Donofrio 

Jan 24, 2018 04:08 AM
Rainer
231,224
Mike Rock
Complete Design - Granite Bay, CA
Granite Bay Luxury New Construction...For Less

the first right of refusal can typically not be resold. a option usually can

Jan 23, 2018 08:19 PM
Rainmaker
3,986,258
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Candace has a great answer

Jan 23, 2018 04:46 PM
Rainer
11,533
Jesus Henao
LEOLA Commercial, Inc. - Santa Clarita, CA
I am a commercial Real Estate Broker

How are options advantageous for real estate buyers?

Jan 23, 2018 04:27 PM
Rainmaker
1,712,676
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I'm late to the Candace party.

Jan 24, 2018 07:44 AM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Candice has a good answer.

Jan 24, 2018 07:33 AM
Rainmaker
1,466,207
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Jesus Henao A first right of refusal allows a tenant to have the first right to purchase a property should the landlord decide to sell during the lease period.

An option allows a potential buyer to lock in a piece of property for a specified period of time where at that time they can purchase the property. An option has to have option funds otherwise it is not an option. Should the potential buyer choose not to exercise the option, the funds will default to the owner.

Jan 24, 2018 07:12 AM
Rainmaker
716,049
Richard Bazinet /MBA, CRS, ABR
West USA Realty - Scottsdale, AZ
Phoenix Scottsdale. Sellers, Buyers & Relocations

An option is just that. First right, goes a step beyond, it's an obligation with a priority, it needs to be turned down first.

In the end, it's all about how the deal is 'written'.

Jan 24, 2018 05:31 AM
Rainmaker
2,241,576
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Lots of confusion about that right of refusal... more than just do you want to buy or not and moving on. If it is drawn up right to need a legal sign off to show it was exercised correctly. Run into them in divorces a lot on the family lake place sale, the splitting up assets when the marital knot gets untied.

Jan 24, 2018 04:14 AM
Rainmaker
4,272,548
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I have always had to pay for a first right of way but not for an option

Jan 23, 2018 08:53 PM
Ambassador
3,345,091
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Candice A. Donofrio wins best answer!

Jan 24, 2018 03:19 PM
Rainmaker
900,128
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

First right of refusal is an example of an option; there can be many different ones.

Jan 24, 2018 08:28 AM
Rainer
117,135
Christine Kankowski North SD and Temecula
House Match Inc - Poway, CA
Excellent Sales and Property Management

Thanks for the answers on this one. Learn something everyday

Jan 24, 2018 08:13 AM
Rainmaker
4,434,127
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Good luck.

Jan 24, 2018 06:22 AM
Rainmaker
1,622,432
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

We rarely use either. 

Jan 23, 2018 10:47 PM