The option period is the first few days of your real estate contract during which the buyer can terminate for any (or no) reason. Note: the seller can NOT back out during this time. They can push back and not agree to repairs or concessions (maybe they received a higher offer after we executed ours), but only the buyer has the right to terminate and get their option money back.

The buyer does research on the condition of the home (gets an inspection). If the buyer is comfortable with the condition of the home and the transaction moves forward to closing, the option fee (and earnest money) are applied to the buyers closing costs at closing.

If the buyer is NOT comfortable with the condition, can’t successfully negotiate repairs, and decides to terminate the contract, the seller/title refunds their earnest money, but keeps the option fee.

It is negotiable, but we typically say between 4-7 days:

• Fewer if the home has been pre-inspected by a reputable inspector.

• More, up to 10 days, if there’s a septic system or other inspections are needed.

We can always ask for a few more days if we need to get some experts out for some estimates. The fewer the number of days, the more attractive it is to the seller.

Yes, but we typically don’t recommend this unless it’s a tear down or we’re super comfortable

with the pre-inspection done by the seller and the house is super new, etc.

General inspection – the inspector comes in and takes a close look at all of the major systems of the home. We are given a 30+ page report with photos, videos, and detailed descriptions of his findings. They include items that are no longer up to code, items that are deficient, and things that could potentially be safety items. We tend to focus on the items that could cost us significant cash, and safety items.

For an additional fee, they can also inspect the sprinkler system, do a termite inspection, septic systems, and pools. The buyer is responsible for paying for all inspections.

If the inspector finds something potentially concerning a major home system (roof, structure, HVAC, etc.), we usually like to get an expert out to give us their opinion and an estimate to remediate any potential problems.

It varies, but a general inspection is usually about $400 to $600. Here are a few of our favorite inspection companies:

Inspect It Austin, Avid Inspection Services, PPLCAvid Inspection Services, PLLC, or Lockett Real Estate Inspections

Applicable add-ons: Termite $80, Sprinkler $50, Septic $200-$400, Pool $80-$250

If the inspector is worried or recommends more specific inspections by a licensed professional, we may choose to have an HVAC inspection $100, plumbing ($75-$300), or foundation inspection ($100-$400).

We tend to focus on the items that could cost buyers lots of money down the road and things that could be safety items. That being said, we come up with a short list of items that we would like to address. We can either ask for the seller to do the repairs or for them to give us $ at closing so we can handle the repairs after closing. The seller can agree, say “nope,” or counter and meet us in the middle.

I usually recommend asking for a credit in lieu of repairs. This keeps the contract cleaner, allows us to have more control over who we choose/hire to complete the repair and how it’s done. It tends to keep things very clear, minimizes disagreements during the contract period, and we won’t have to worry about if the repair was done properly.

New construction contracts typically do NOT include option periods. Instead, they usually allow us to bring in our inspector during or at the end of the build to issue the report. They will typically address the items found on the report before closing. Some buyers choose to get an inspection about 9-10 months after they move in and ask the builder to address the items before the 1 year home warranty runs out. We’ll discuss all of this if you choose to build a new home