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advice Executing a successful domain "Option to buy" deal

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The cost to the domain owner of entering into an option agreement is that you have to take the domain off the market for a period of time. I wouldn’t recommend doing this on a domain that gets lots of qualified offers, unless the pot at the end of the option period is substantially higher than the offers you’ve received.
You can negotiate for the option payments to count toward the purchase price, or have some portion count toward the purchase price. Having less than 100% go toward the purchase is an incentive for the buyer to exercise the option sooner. In my case, with a relatively short option period expiring before the end of the calendar year, the option payments counted toward the purchase price. Had it been a longer option period, or if the buyer had asked for an extension, I would have negotiated for only a portion of the payments to go toward the purchase...
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