03 Sep Option Period When Buying a Home
An Option Period is a specific amount of time, agreed upon between the buyer and seller, that allows the buyer time to perform their due diligence and conduct further investigations into the property. This period is commonly 10 days but can be extended by mutual agreement between the buyer and seller. This time allows for the buyer to conduct a proper home inspection and get quoted for any repairs that may have been found.
Once an inspection is complete, you may be at the mercy of your real estate agent’s expertise to help you determine the severity of any repairs and what action you should take. Once you have determined what repairs you require, an amendment is sent over to the seller’s agent informing them of which repairs you hope will be made by the sellers. From here, by way of the agents, you can negotiate the amendments updated terms and come to a conclusion. The option period allows the buyer an unrestricted right to terminate the proposed contract if you are unable to reach an agreement with the sellers following the inspection.
It is common for buyers to feel worried, concerned and rushed during this period as the home inspection is out of their hand and the negotiations can be difficult. The option period keeps the seller from selling the house to anyone else during this time. Though the seller is permitted to negotiate and accept back-up offers, they are still contractually bound to sell the property to you until the contract and its amendments are terminated.
The option period is important for buyers as they should do their due diligence so that there are no surprises when they finally purchase the home. Take the time to work with your realtors to find a licensed home inspector and to understand what moves to make when reconnecting with the sellers. In the housing industry, we all have excellent people who we can recommend, so never hesitate to contact Fairway with any questions you may have.
With stabilizing home mortgage loan interest rates, right now is one of the best times to consider all of your home buying or selling options. Whether you are buying a new home or looking to refinance your current home, you can trust Fairway Independent Mortgage of the Carolinas to make your home loan as stress-free as possible. Call one of our four offices today to get started or schedule an appointment with you to really look at your financial plans and help you make the best home loan decision or show you how the path toward ownership. Call us anytime.. We have locations in Matthews, Ballantyne, Lake Norman and Mooresville to make meeting convenient, or simply fill out our online application to get started.