One of the terms that may come up when you buy a home is "option period” in some areas, and “due diligence" in other areas. 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 ten days, but can be extended by mutual agreement between the buyer and seller. An option period allows for the buyer to conduct a proper home inspection and obtain quotes for any repairs that may have been found.
Once an inspection is completed, you may need to rely on 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 are required, this list is sent over as an amendment to the seller's agent, which informs the sellers about which repairs you hope to have made. From here, by way of the agents, you can negotiate the amendments 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 hands and the negotiations can be difficult. This is why finding a real estate agent whom you trust is critical. 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 do their due diligence so that there are no surprises when they finally purchase the home. Take the time to work with your agent 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 us 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.