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What Is an Option Period When Buying a Home?

HomeLight

In the state of Texas, an “option period” allows a buyer to get these details before making the final choice. Keep in mind that option periods are specific to Texas and other states will have different processes that give buyers the time they need to make the final decision. What is an option period?

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When Can a Buyer Cancel a Home Purchase Agreement?

HomeLight

What is an option period? The option period is a specified timeframe within a real estate contract during which the buyer has the exclusive right to terminate the agreement for any reason. Negotiation opportunity: Based on findings during the option period, buyers can renegotiate terms or request repairs from the seller.

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Working with buyers in the nation’s hottest housing market

Housing Wire

She might also recommend increasing their earnest money to 2% or more, offer a very large option fee for a very short amount of time and even waive buyer’s approval. 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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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.

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“Back on the market:” How agents are navigating the uptick in contract cancellations

Real Trends

In most instances, if a buyer backs out of a deal due to something on the inspection or for any reasons within the option period, they won’t lose their earnest money deposit.

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Your Ultimate Guide to Buying a Home in Texas in 14 Steps

HomeLight

Option period: In Texas, this is negotiable, and the buyer can specify the number of days that they have to terminate the contract for any reason. In exchange, an agreed upon non-refundable option fee will be paid to the seller, but the buyer won’t lose their earnest money deposit if they decide to walk away during the option period.

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Find Cash Home Buyers in Los Angeles for a Fast, Simple Sale

HomeLight

The buyer does due diligence during the option period in California, which is typically one to 10 days. Although there are no required disclosures because the property is being sold as-is, there is an inspection period. The buyer and seller sign the closing documents. You receive a check or have money wired into your account.

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