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What is Option Period?
In the state of Texas, option period is the unrestricted right to terminate a contract. However, it is only a time period that is negotiated during the buyer and seller, and on the last day of option period, you only get until 4:59PM. It is an opportunity to make an educated decision about whether or not you want to go through with the contract. Buyers usually take this this time to do the following:
- Have their home inspections
- Get quotes on flooring, roof, paint, landscaping,…
- Measure the room dimensions of the home
- Have their family members take a look at the home
- Negotiate for repairs, reduction in sales price, closing costs…
- Other due diligence
Do you have to pay for Option Period?
Yes. The amount that you pay is negotiable, and this payment will be made to the title company. Option period money must given to title company within three days after the contract is executed.
When does Option Period Start?
The day AFTER the contract is executed.
How long is Option Period?
I have seen between 1-15 days, but again, this is negotiable. Having fewer days for option period is more desirable to a seller. However, on the LAST DAY of option period, you only have until 4:59pm.
Can you extend Option Period?
This is negotiable, and you would have to pay to extend option period. This also could potentially delay closing.
Do you have to have an Option Period?
No, you do not have to have an option period. Option period is negotiable, and the seller could also say no option period.
How to make the best use of your Option Period time?
1.COMMUNICATE:
You may walk through the property and think the following:
How much would this cost to______....
I like the layout, but I want to change_____...
I wonder if I need to update_____...
I have to go out town on ____... and want to make sure that____...
I really wish my (insert loved one) could see this because_____...
If you have those thoughts, communicate with me! We will need to contact individual/professional tradesman, and compare schedules to make sure you have enough time. It would be wise to contact these individuals before your option period begins to make sure everyone is on the same page.
Also, if you choose to have inspections, and receive quotes, and want to negotiate, we need to do this sooner rather than later in option period time. Again, on the last day, you only get until 5:00 pm.
2. Try to be there when the licensed individual/professional tradesman is there.
That way you can communicate with the person face to face, ask questions you didn’t think of beforehand, and walk through the property with an expert in their field.
3. Be cognizant about the timeline.
We will be working around MULTIPLE individuals’ schedules during this time:
- Your schedule
- Your loved one's schedule
- My schedule
- Listing agent schedule
- Seller(s) Schedule
- Inspector’s Schedule
- Professional Tradesman’s Schedule
- Etc.
With that in mind, please do not put things off until the last minute. Remember, this is your unrestricted time to terminate the contract.
I will be with you every step of the way during your home buying journey! I can absolutely recommend professionals to help facilitate your decision whether or not to purchase this home. This time is valuable so that you do not make a rushed decision. If you ever have any questions, please let me know, and I’d be happy to help.
Do you want to purchase a home in East Texas? Hit the "Call Kelly" button, or fill out the contact information today!
Kelly Raulston
“Reliable and Ready” REALTOR® since 2016. I was born in Monroeville, Pennsylvania, but was raised in Texas since 1997. When I found out we were moving to Plano, Texas, I remember looking forward to riding a horse to school and a brand-new pair of cowboy boots! Growing up in Plano prepared me to be competitive, quick, and to have a strong work ethic.
I graduated from Stephen F. Austin State University in Nacogdoches, Texas. Axe’em Jacks! That is where my love for East Texas began. The nature, warm smiles, football games, and community values can't be beat! I graduated summa cum laude with a degree in Interdisciplinary Studies. I was a middle school math teacher in Tyler, Texas. I met my husband, Travis, in Sunday school, and we have been married since September 2016.
I love being a REALTOR® in East Texas! Relationships are genuine, the area is beautiful, and the market is rockin’! I am an involved REALTOR® to better the community. Some of the organizations I am involved with are: The Professional Development Committee, Texas Real Estate Political Action Committee, and Tyler Educational Networking Group. Some awards I have won were “The Hustle Award” in 2016, and “Rookie of the Year” in 2017.
When I am not working with my clients, I like to spend quality time with my friends and family doing the following: running, target practice, read and participate in book club, and playing with my dachshund Greta.
