Written by Vikki Head, Sales Manager
Maybe you have never bought a home before, or maybe you are a seasoned and repeating buyer/seller. Either way, one of the most important and sometimes misrepresented parts of a real estate transaction is the Option Period. In a residential contract, an option period is a timeframe (typically between 7-10 days) at the start of a contract that a buyer gives monetary consideration for and which guarantees the buyer the right to terminate the contract within that agreed upon timeframe.
Although the option period gives the buyer the right to terminate for any reason, it is normally seen as the timeframe during which a buyer could choose to get the property home and termite inspections, and then determine to move forward depending on the findings of those inspection reports.
There are a few important things to remember about the option period. The end time of your option is 5:00 pm on the agreed date. That could be on a weekend or holiday as well. So, it is very important to have a Realtor that is communicating with their client in a timely manner. Option period actually can be extended (say, if you can’t get an inspection scheduled soon enough) but both parties have to agree and sign a contract amendment to do so.
It’s crucial (if you do have an option period) to make sure your agent is knowledgeable and competent and can help you negotiate repairs if needed. It’s also important to note that in the current market, some buyers are opting to forego the option period altogether to make for a more appealing offer to a seller. The choice is yours, but the decision and details aren’t always easy. Contact our office today for any (and hopefully all!) of your real estate needs! 325-691-1410