Option Period

By definition, an option period is “the unrestricted right to terminate a contract on a home for any reason within a presented period of time.” In layman’s terms, it is the time between when your offer to buy the home is accepted and the time you must inform the seller of your intent to purchase. The length of the option period is negotiable as agreed upon by the buyer and seller, but the standard time is 7-10 days. An option fee is paid by the buyer as a good faith symbol and will or will not be applied towards the purchase price upon final acceptance. If the buyer terminates the contract, the option fee is forfeited.

Initially, the option period may seem like a time to just relax and think about whether you would like to purchase the home in Houston, but that is not the case. The minute the option period begins, so does the work. It is important to know that per Texas law, the option period ends exactly at 5:00 P.M. on the last day of the period, unless an extension is agreed upon. Also, REMEMBER that Texas follows the common law doctrine of caveat emptor, or buyer beware. What this means is that the seller has no duty to disclose any problems with the home subject to three exceptions:

The seller must disclose if he made an affirmative misrepresentation…basically if he lied and knew it.
The seller must disclose if he has any relationship with the agent…it could cause a legal problem if the seller and the real estate agent are in a business together.
The seller must disclose if he has taken steps to conceal a condition, such as throwing a rug over water damage.

Other than those exceptions, you may be on your own. Because of this fact, you need to hire inspectors for anything and everything before you buy a house. Check out our Inspections Page for a non-exhaustive list of possible inspections. The standard inspections are: home inspection, termite inspection, mold inspection, HVAC inspection, home plumbing inspection, and an electrical inspection. There are many others that are available to ensure that your home is ready for the move-in date.

WHAT OCCURS DURING AN OPTION PERIOD?

Inspections, reports, and insurance shopping are all events that occur during the option period. Ensure to schedule the home inspections early. Some home inspectors in Texas will provide a report same day while others may take a day or two to compile. After the inspection reports are given to Calvin, he reviews them line by line looking for anything that may cause concern. If something arises, he will demand that the seller address the issue and negotiate an extension of the option period. Also, during the option period, a buyer will be researching homeowner’s insurance. These quotes usually take a day or two to receive. As with inspections, ensure that you request an insurance quote early in the week to avoid a last minute rush.

WHY WOULD A SELLER AGREE TO AN OPTION PERIOD?

It may seem surprising that a seller would agree to an option period, knowing that the buyer can terminate for any reason. An option period is beneficial to the seller in allowing him or her to keep the option period fee if the contract is terminated or allows him to sell his home to a satisfied buyer. There is no loss for either party. Because there is no real risk to either party, a clause for an option period is standard in most Texas real estate contracts.

If the buyer decides to terminate the contract, the seller must obviously be notified. The buyer must sign and submit the termination document before the expiration deadline of 5:00 P.M. on the agreed upon day. Calvin Kim will ensure that you receive as much time as you need under the option period. His job is to alleviate the stress and pressure of buying a home. Contact Calvin if he can assist you with your home buying process in The Greater Houston Area.

What Clients Say

In my 45 years of using realtors, Calvin was the BEST that I have ever had the opportunity of working with! Simply stated... Calvin was Outstanding!!! Calvin listened to my list of wants, needs and desires! He provided me with many different homes that he thought would meet my wish list! Calvin scheduled several showings and he was always on time and was very helpful of pointing out different things that I may have missed! He was always quick and very responsive to communicating with me via calls, text and emails! Calvin found me the perfect home... a home that checked off every one of my boxes! I highly recommend Calvin! If I need a realtor in the future, Calvin will be my first choice!

smehlers55
May 25, 2022

Highly recommend Calvin. He has been around the area doing real estate for decades that he provides historical context as well as developments with sophisticated knowledge. We had an introductory call where he listened to our needs and general profile then knew exactly how to engage with us and help us find a good home. He’s responsive - we were looking for a home while traveling internationally so he helped us do virtual tours and made sure our discussions didn’t get delayed due to time difference. He has genuine care for the client to know what to look for so you are stuck with a house that has undiscovered problems along the way. I’m today’s crazy competitive housing market in Houston, you need someone like Calvin to find a home that you can really be satisfied with. Especially folks you are coming with no knowledge regarding the Houston metropolitan area, reach out to Calvin. You won’t go wrong with him.

Haley Park
July 17, 2021

It was great experience purchasing home with Calvin. He explained all detail steps and has fabulous manageability with lender and seller. From my perspective, Calvin has better knowledge than any others. Really appreciate his effort and strongly recommand Calvin.

ChristopherCho6
May 30, 2021

Calvin is caring, most importantly his professionalism and communication is simply outstanding. Our experience with him was amazing. Thank you again Calvin.

faisal suleman735
December 24, 2020

Very helpful, his top of everything you ask. Highly recommend Calvin. Great person, very understandable and listens very well. Doesn't give you pressure on anything!~

Mimi Kim
December 18, 2020

I can't begin to say how wonderful it was to work with Calvin. It took us a long time to put our house on the market and Calvin was always working with us the entire way. His knowledge of real estate and properties was superb. He was extremely helpful in bouncing ideas and discussing strategies. Calvin is the realtor who can deal with high level strategy but also deal with all the details in a deal. I always felt confident that if there something issues in the process, Calvin would find it and ensure everyone understood the issue. I'd give him more than 5 stars if I could.

Jong hak Kim
October 27, 2020

Calvin was so helpful and friendly. He helped me navigate and sort everything through so well, and carefully guided me through the process until the end. I highly recommend his services. He definitely is experienced, and will do his best to help you!

lde7058
October 21, 2020

From the beginning of discussion, I was very comfortable with his honest, accurate and strong sense of ownership. He always showed great memories and shared all information with professional knowledge. His marketing strategies, negotiation skills, and attention to details ensuring the process was very professional and effective. I will be referring Calvin Kim to all of our friends who need real estate assistance in the future because of his excellent service mindset and looking forward to working with him again.

nauticus4
October 18, 2020

Calvin was extremely involved in every aspect of the process. He always kept me in the loop and took care of all the work without needing to be asked. I have worked with other realtors in the past and Calvin exceeded all expectations by far, I would not hesitate to hire Calvin as my realtor if I...

jaewonhong
October 15, 2020

We can't believe that Calvin sold our home for free! We can't say enough of what Calvin has done for us. We saved thousands of dollars, and we used it to purchase our new home! Thank you for all that you have done

jonnykim0311
September 9, 2020