DO YOU KNOW WHAT AN OPTION PERIOD IS?
If you are a buyer or seller, it is beneficial for you to know what an “option period” is and how it works. When a sales contract is offered to a seller, it often includes an option period. This is a short period of time (usually 7-10 days} during which a buyer can back out of the contract FOR ANY REASON. A fee is paid to the seller up front for this option; typically around$100-$200. During this period, the buyer usually gets an inspection of the home and any repairs needed can be negotiated between the two parties at that time. After the option period expires, it would be more difficult and costly to get out of the contract. The option fee is paid directly to the seller and is not refundable. If the contract goes forward, it can be credited to the buyers’ closing costs.If the buyer opts out, the seller retains the option fee. Most Realtors strongly recommend their buyers include the Option Period in their offer.