We have been house hunting for several weeks, and then one day, “the house” comes on the market. This is the home is the perfect commute to work, is in a sought out location, has a floor plan that is best for your family… it checks off all of your non-negotiable boxes on your list. You have already been pre-approved, and have your pre-approval letter. We submit and offer, and after negotiating the terms in the contract, you and the seller have come to an agreement, and we have an executed contract! The day after the contract is executed, that is when Option Period starts.
What is Option Period?
In the state of Texas, option period is an opportunity to make an educated decision about whether or not you want to go through with the contract. This time period, you have the unrestricted right to terminate 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 seller. Option period money must given to seller within three days after the contract is executed.
How long is Option Period?
Usually between 5-10 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 5:00pm.
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?
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
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. I am looking forward to working with you in the future!