Option Value of Real Estate
If you own real estate, you might not realize that your property is actually worth more than you think it is. Most people think that a property value is just what someone will pay you for it. There is one additional item that has value to any real estate and that item is called its option value.
An option value is the amount of money somebody is willing to pay a property owner for the right to purchase the property owner’s real estate without the obligation to do so.