article thumbnail

What Is an Option Period When Buying a Home?

HomeLight

For example, states such as North Carolina and Georgia have a due diligence period that works in a similar way. A higher fee and shorter time frame might make the buyer’s offer more attractive to the seller, and sellers may ask for better terms which could extend the negotiation period. When does an option period begin?

article thumbnail

What Does Contingent Mean in Real Estate Sales

Realty Biz

They will also get their earnest money deposit back , and the home will go back on the market. While it is rarer for a home sale to fall apart because of a buyer not getting financing, it is still something where due diligence is essential. In real estate jargon, this is referred to as a “backup offer.”