We understand how frustrating it can be to search for a home in Austin. Half the battle is learning the key terms and what they mean in regards to Texas real estate. So each week we bring you Key Term Tuesday – our way of helping you decode the industry jargon that keeps you from owning your home search.
What is an Option?
Plain and simple: an option is the buyer’s right to cancel the contract for any reason during a specified time period. A buyer pays the seller for this flexibility via their option fee, a non-refundable negotiable amount (usually between $100-$500 in Texas). Typically the option period lasts 5-14 days, but the time frame is negotiable.
During the option period the buyer will complete inspections and negotiate repairs. If the buyer uncovers some defect, can’t come to agreement on repairs, or just changes their mind, they may terminate the contract and get their earnest money back. When the buyer cancels, the seller keeps the option money. If the buyer completes the sale, the option money is typically applied to their down payment.
Options are a straight-forward method that allows the buyer the time to make a thoughtful, informed purchase decision. There are strict time limitations when using an option and missing a deadline can be costly. Work with an agent who pays attention to all the details, big and small, and respects how important your purchase is to you.
Looking for a Real Estate Expert?
Our team has a combined 55+ years of experience helping home buyers understand the r. Check out our approach to Buying a Home in Austin to learn more about our team and how we work. Then, call us at (512) 827-8323 or email us at info@11OaksRealty.com to schedule a no obligation consultation.