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Buying a property as-is with an option period

| Nov 17, 2020 | Firm News |

Few things are more exciting than buying your first home. Still, with housing prices increasing in many places across the Lone Star State, you may be looking for a bargain. Buying a house as-is may save you some money, at least initially.

When you purchase a property as-is, you accept it in its current condition. This means you may have little idea about damage, construction defects, mold growth, easements or anything else. If you go this route, you may want to pay an option fee to have an opportunity to do an inspection.

The option period

If you pay an option fee, you have an agreed-upon time, usually a week or 10 days, to perform some due diligence on the property. During this period, you can work with a certified home inspector to better understand the condition of the property.

An amended contract

If your due diligence uncovers some red flags about the condition of the property or essentially anything else property-related, you may be able to renegotiate the purchase price or otherwise amend the contract.

A chance to cancel

During the option period, you may uncover something that makes you want to walk away from the deal. You typically have the right to do so without losing your earnest money. The seller generally keeps the option fee, however.

While buying an as-is property is not for everyone, you can likely increase your chances of having a successful purchase by considering an option period. After all, if you decide you do not want the property, you want to be able to terminate the contract and find a different home to buy.

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