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What Is an Option Period When Buying a Home?

HomeLight

Before inspections, you may fear the state of the home or the seller’s willingness to negotiate repairs if the home needs serious work. In the state of Texas, an “option period” allows a buyer to get these details before making the final choice. What is an option period? When does an option period begin?

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Working with buyers in the nation’s hottest housing market

Housing Wire

Richardson also noted that there have been fewer property inspection waivers issued by Fannie Mae in the last several months, keeping appraisers, inspectors and others in valuation very busy. One thing she does not recommend — unless the buyer is a builder or other very experienced player — is waiving the option period.

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When Can a Buyer Cancel a Home Purchase Agreement?

HomeLight

Contingencies: Conditions that must be met for the sale to proceed, such as home inspections, financing approval, and the sale of the buyer’s current home. What is an option period? Negotiation opportunity: Based on findings during the option period, buyers can renegotiate terms or request repairs from the seller.

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Option Contracts in Real Estate: A Flexible Tool for Buyers and Sellers

Redfin

In exchange for this right, the buyer pays a non-refundable option fee. The seller agrees not to sell the property to anyone else during the option period. Key components of an option contract Several components make up an option contract: Optionor and optionee: The optionor is the seller, granting the right to buy.

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How Long Does It Take to Close On a House With Cash in 2022? Here’s Your Timeline

HomeLight

Inspections: One week to book; 2 to 4 hours to complete. Cash buyers can waive an inspection in their purchase agreement, but it’s a very good idea to still have the property inspected “for informational purposes only.” An inspection can identify a serious hidden problem which could impact the home’s value.

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How to Find Rent-to-Own Homes: An Investor Guide

The Close

The terms of the rent-to-own contract outline the purchase price, the option period (when the tenant can exercise the option to buy), rent premiums, financing terms, and option fees. Order an independent appraisal, perform a property inspection, verify up-to-date property taxes, and check for any liens.

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Austin-Based REALTOR® Leverages Home Warranty Partnership in High-Demand Market

RIS Media

“We’re seeing buyers waiving everything, from appraisals, option periods and inspections,” says Riley, who notes that cash isn’t even winning these days. With 15 years of experience in the business, Riley launched her career in Atlanta before settling in Texas in 2008.