What is an option period?
First off, an option period is not something that is required but is highly highly encouraged and recommended.
Here in Texas an option period was developed to allow home buyers the opportunity to further examine the property in detail before the earnest money goes hard and they are locked into the contract completely, after the option period time frame is up the transaction moves in to what is called pending status.
An option period takes the property off the market to any other buyers while you the home buyer investigate your purchase further. During the option period the seller can accept back up offers on the home but no other offer can be accepted over yours by the seller in that time frame..basically the ball is in your court!
The option period is mostly know for and commonly referred to as the inspection period. This is the time frame where you are able to have the property inspected by a third party home inspector of your choosing...you may also have the property inspected for termites or have it looked at by any one to get price quotes if needed including home insurance prices. The option period is also the ideal time to double check any important zoning, or measurements to make sure everything is to your standards along with any HOA restrictions that are important to you, double check any and everything in this time period.
Again, the most important aspect of the option period is usually the home inspection and although it is not required it is highly encouraged and recommended you hire at your cost a professional licensed third party home inspector in the state if Texas of your choosing.
After the home is inspected by a licensed third party home inspector he or she will provide an inspection report for review. After review and discussion the option period gives us the opportunity to negotiate any repairs we feel are necessary or price reductions in lieu of. Just remember all of this needs to be done in the time frame negotiated with the terms of the signed and executed contract.
The option period is set on a daily basis and must be supported by a monetary value, there is no set price or length of time but compensation is a requirement and can be negotiated. The typical time frame is 5-10 days at $10 per day and should be negotiated to count towards the sales price if the contract is not terminated. Keep in mind the seller is agreeing to take their home off the market to potential buyers in this time frame so if you do decide to terminate for any reason they will keep the option fee, the earnest money will be released back to you but the option fee is forfeited with your right to terminate foe ANY reason during the given option period. Even if you simply just decide you do not like the home any more it is your right in the option period to walk away without further penalty ...so make sure your San Antonio Realtor negotiates an option period into the terms of your contract!
As always we are here to answer any questions you might have or help with your home purchase when the time comes so please do not hesitate to contact us anytime. We always aim to go above and beyond to represent our clients better than any one else while negotiating the best price and terms we can for our clients - we would love to have the opportunity to represent you on your next San Antonio real estate transaction. Thanks, talk to you soon.
Joseph K. Keresztury
All information deemed reliable but not guaranteed.