Did you Know? Real Estate Purchase Series by Shawn Manderscheid, 1st Edition

Did you know that in a real estate contract, the buyer will typically have an option period whereby they have the option to opt out of the contract within a week or so after the contract is signed by both parties for a small fee? The option period is often 7 to 12 days, and the option fee the buyer will initially pay the seller is usually between $100 and $200. During this period, the buyer has an opportunity to hire an inspector to thoroughly inspect the property and outline any needed repairs. This ensures they are fully informed of the condition of the property and are making a wise decision to follow through with the purchase. If the buyer opts out of the purchase within their option period, the seller simply retains the option fee, the earnest money is refunded to the buyer, and the buyer walks with no further responsibility to the seller. If the buyer does not exercise their option and the transaction closes, the option fee is typically refunded to buyer at closing. Inquire with your real estate professional for more information. If you are a buyer, make sure your buyer’s agent includes an option period in the offer he or she prepares for you.