What’s an Option Period and Why Should I Purchase it?
This blog post is long overdue! To my followers, I apologize for not blogging for the last month or so. I’ve been handling so many deals that I haven’t had time, however, I’m going to make an effort to stay on it.
With that said, today’s topic deals with option periods and inspections. I recommend that all of my clients get an inspection before purchasing a property. It’s super important to thoroughly check a home to ensure that you’re making a good investment. While there’s no doubt that you may have maintenance issues in the future, getting an inspection will not only help you anticipate future repairs but it will also help you determine what repairs you’ll ask the Seller to complete and also if this is a sound investment (i.e., there aren’t any major problems with the property).
In order to lock in your contract as well as have the options to perform an inspection, you’ll need to “buy” an option period. This is a period of time specified in the contract that allows you to perform an inspection, request that the Seller complete repairs and/or back out of the deal if necessary. The option fee is usually about $100-$200 and is typically 10 days; however, this is negotiated with the Seller.
Finally, in addition to having an inspection, it’s important that you review the Seller’s Disclosure as well. While it’s not AS thorough as an inspection, it will also provide valuable information about a property to the Buyer.