What is the Option Consideration Fee?
A. An Option Consideration Fee is a non-refundable fee paid up front in order to make the deal binding. In order for any contract to be binding and irrevocable, there must be a commitment by both parties in either payment and/or performance. An Option Consideration Fee is usually a meaningful amount, typically 2½% to 5% of the agreed upon purchase price – but still less than what banks usually require. However, Alterna only requires a minimum of $3,500 to a maximum of $5,000, and the total amount is determined based on the house selected. From this fee, $1,500 will cover our services fee and the rest will be credited toward reducing the purchase price.
