The option period is one of the last hurdles that you must overcome.
So you made it through all the showings and negotiated a contract. It ought to be smooth sailing now, right? Well, you still need to make it through the option period.
In a Texas real estate contract, the option period is a function that gives the buyer the unrestricted right to terminate for any reason during that period. The option period begins on the day that the contract is executed and can last up to 60 days. In this market, they’re typically five to seven days. That’s when we’re going to do all the inspections.
Once all the inspections are done, if there are any repairs that the buyer asks the seller to do, they will prepare an amendment and send over a copy of the inspection report. The seller can agree to all of it, counteroffer to do some repairs, or reject all the buyer’s requests. That may cause the buyer to cancel the contract.
It’s written in the contract that if the option fee is zero, then the buyer gets no option period. In this market, we’re typically seeing about $100 per day for an option period. That money is deposited at the title company with the earnest money. If the buyer closes, it’s credited back to them at closing, so it costs them nothing. If they terminate the contract, the money goes to you as damages.
If you have any more questions about the option period, selling in general, or anything else real estate-related, please feel free to reach out. I’d be happy to help.