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Showing posts with the label pre-purchase inspection

Option period: What is it and how does it affect the purchase and sale of homes

What is an option period? An Option Period is written into a real estate contract to give the buyer a specific number of days in which they can rescind the contract and receive a refund of their security deposit. Its goal is to give the buyer time to learn more about the home through independent inspections and appraisals, negotiate repairs and other elements of the contract, and obtain approval for financing if applying for a mortgage . The buyers will pay the option fee to the seller that is not refundable, it’s the charge for review period and typically ranges from 100$ to 200$. The option period usually lasts from 1 to 10 days. It begins the day after the acquisition contract is signed and ends at 5 p.m. local time on the specified end date. During the Option Period, the property is labeled as a "pending option" (OP). If the customer needs more time, they will potentially negotiate with the vendor to increase the option Period for extra days. The Option Period all