We handle inspections in a very unique way in Texas. When you write a contract to purchase a home in in Texas, you can buy an “option period” (usually 7-10 days, negotiable) from the seller for $200-$400 (negotiable) that gives you the irrevocable privilege to back out of the sales contract for any reason, and still receive your 1 percent earnest money back. (During this time, the Seller cannot back out of the contract…only the Buyer has that right.)
NOTE: The $200-400 Option fee is paid directly to the seller…usually via a personal check. So when you sign the contract to purchase a home, you will give your real estate agent two checks: 1) Option fee check payable to the Seller, and 2) Earnest money (usually 1 percent of sales price) payable to the Title Company. Your agent will deliver both checks to the appropriate party and get a written receipt for proof, within 3 days of executing the contract. If the Option fee is not paid within 3 days, then the Option period does not exist and you are buying the home as is! Very important!
If you buy an Option period, it begins the day the contract is “executed” (signed and acknowledged by all parties). So you must be ready to get your inspections ordered ASAP. (Here’s a list of home inspectors.) Any and all inspections that you want to have done to the home must happen before the end of the Option period. In addition, if you find any defects that you cannot live with, then you must negotiate the repairs, or change in price, before the end of the Option period. At 5:00 p.m. on the last day of the Option period, if you have not had the Seller sign an Amendment agreeing to price modifications or repairs, then you are buying the home “as is.” Make sure you get your inspection reports several days before the end of the Option so you can review them and discuss with your agent and have time to submit an Amendment to the Seller.
In summary, the Option period gives you time to have the home thoroughly inspected and find any defects that you cannot live with. It also allows time to negotiate repairs with the Seller. At the end of the Option Period (and the timing is very strict) you can do one of the following:
- If you “exercise” your option (and decline purchasing the home), then you lose your option fee ($200-500), but you get your 1% earnest money back.
—Or—
- If you do not exercise your option (and continue the purchasing process), then the option fee is usually applied toward your closing costs.
Make sure you hire a real estate agent who knows how to properly handle Option Periods and protect your money.
REALTORS DON’T “JUST” SELL HOUSESReal estate agents don’t “just” sell houses; we sell a SERVICE to guide home buyers and sellers through the entire real estate transaction, which usually takes several months. We are more like real estate consultants than we are salespeople. That’s probably why 86 percent of all home buyers and sellers choose to hire a real estate agent when buying or selling a home! Buying or selling a home is not like buying or selling a TV, a computer, or a car. You can’t buy/sell a home in one day…even if the buyer is paying cash. There are MANY legal aspects, deadlines, and requirements that most people are not trained to handle. What’s more…mistakes along the way can cost you thousands and even hundreds of thousands of dollars. The financial risk is much greater than just about anything else you may buy.
Please read the list of my value-added services for home buyers |
FREE GUIDES & REPORTS
Click Image Below to Download a Guide or Report
View Helpful Videos on My YouTube Channel
Why You Should Hire Me
Candid Advice—I promise to give you candid advice on all homes and areas so you can make the best decisions. I won’t ignore potential defects that can cost you money, or effect your resale value, in the future…I point them out to you! My job is to protect you from defective homes as much as possible while helping you make a sound financial investment. (Read client testimonials)
Local Area Expertise—This isn’t just my business…it’s where I work and live (for 20 years) so I really know the area. I will help you narrow your options and find the best neighborhood for you based on your specifications. For long-term resale value, the neighborhood you choose is just as important as the home you buy. (Download my Ultimate Sugar Land Guide)
Great Pricing Data—I will give you the most in-depth data you have ever seen…to help you make the wisest decisions. This includes a professional CMA when you are ready to purchase a specific home…so you don’t pay too much. (Also see Pricing a Home Correctly)
Premium Customized Home Searches—Yes, you can search on your own, but no other home search available can filter down to the school level…and filter out the subdivisions that may be known to flood. Tell me exactly what you want, and I can narrow down your options better than any search you have access to. (Request a Premium Customized Home Search)
Video Walkthroughs—If you or your spouse lives out of the state or country, then you will enjoy my detailed video walkthroughs. I have sold multiple homes to out-of-area clients “sight unseen” by providing High Definition video walkthroughs of potential homes. My videos show front and back yards, closets, pantries, laundry rooms, and the garage…as well as the entire home. This gives you a complete picture of the house (unlike those silly Matterports). I also point out any potential defects or deferred maintenance that I see. (view sample video walkthrough)
Easier Process—Moving your family (and possibly changing jobs) is stressful enough. I’m your transaction manager and will guide you, step-by-step, through the process so you never miss an important deadline. I assist with inspections, repair negotiations, home warranties, HOA compliance inspections, hazard insurance, surveys, appraisals, title commitment, home warranties, title company, and more. (Get Details of My Value-Added Services)
Connect With Sheila
