What to Do During The Option Period in a Real Estate Contract

In Texas, there is a place in the state promulgated residential real estate contract for an option period. This is a time period, usually 7 to 10 days, during which the buyer can back out of the contract for any reason. So what should home buyers do during the option period?

With the assistance of their Buyer´s Agent, there are several things that should be during the option period. The first thing that should be done and it should be done immediately after going under contract is ordering a home inspection and a pest inspection. If the home inspections turns up something serious like a roof or air conditioning problem, a licensed contractor should be called for a more thorough inspection.

In Central Texas many homes have septic systems as sewer service may not be available. These should also be inspected during the option period. A septic inspection may cost $450 or more, but it is more prudent to spend the money up front than experience an expensive repair.

Some homes will also have wells if city, county or private water is not available. Having the seller provide a well report is a good thing because the buyer can call the company that drilled the well and have the report interpreted. A well inspection will inspect the quality of the water to make sure bacteria is not present. The inspection will also look at mechanical parts and the storage tank if the system has one.

There may be inspections advised for other things as well. If the home has a pool, a boat dock or a tram or stairs to a lake, it may be wise to have them inspected.

Home buyers can spend quite a bit of money for inspections, but if they forego inspections and something fails after closing on the purchase, they may spend a lot more then.

Sam Chapman is an Austin REALTOR® who has lived and worked in the Austin area since 1987. Sam enjoys helping people buy or sell Lake Travis waterfront homes and he enjoys volunteering in the community. Read Sams Austin Real Estate Blog.