Remember real estate contracts and norms vary from state to state. In Texas we use promulgated forms drawn by the Texas Real Estate Commission. They call for earnest money (usually a dollar amount..not mandatory but most always tendered) and a fee for an Option period.
So what is an Option period and why do I have to pay for it? The option period is a negotiated period of time that allows the buyer the opportunity to obtain inspections, get home insurance quotes and perform due diligence on any items of concern. There is consideration for this privilege because for ANY reason a buyer may opt out of the contract.
Needless to say this time frame makes a seller nervous! If there are repair requests the buyer’s agent provides the request in writing on one of our promulgated amendment forms (we have an amendment for everything) within the option period to be negotiated (hopefully not at the eleventh hour of the option period).
Once repair requests are negotiated and the buyer moves forward, at closing they are credited their option money back on the settlement statement. The buyer only loses their option money if they back out of the contract during the option period but they do obtain their earnest money. So what is this privilege worth? Whatever the amount negotiated!
Helping buyers decipher real estate information is just one of many reasons to employ my services as a Real Estate Consultant. If you are looking to make a home purchase in NW Austin I would love the opportunity to earn your business and exceed your expectations. I have systems in place, references and am a good listener and communicator.
FAQ #3: Why do I need to get pre-approved before looking for a home?
FAQ #2: Can I ask the seller to pay my closing costs?
FAQ #1: Why should I buy a home now?
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