An Accepted Contract is just the Beginning
Whether you’re the buyer or seller, an accepted Contract is just as exciting. But the stress of it all has just begun. Thankfully, Advantage Real Estate is here to help during this time. We can guide you through from beginning to end of all the potential problems that might arise.
An option to back out
In Texas, most contracts have a termination period, called the option period, which is usually under 12 days. This is security for the buyer. The buyer pays the seller a fee for a specified period of time during which the buyer can cancel the contract. The Buyer can exercise this option period for ANY reason without the risk of losing his or her earnest money. In short, a termination period creates the right to terminate within the specified number of days for a specified price.
A closer look at the property
Buyers usually hire inspectors during the termination-option period. After the inspection, if serious problems are found with the home, the Buyer can either ask for a price reduction or negotiate certain repairs prior to closing. Or the buyer may simply choose to cancel the deal all together.
A transaction can unravels when a buyer cannot obtain the financing specified in the contract or the property does not meet the lender’s requirements. For example, if the appraisal of the home comes in lower than the purchase price, or there may be issues with obtaining insurance for the home.
The list goes on
Option periods, inspections, and financing can be three common hurdles during the transactions, although there are many others. Problems with title insurance or the survey, disagreements about items that convey, issues related to homeowners associations, or damage to the property after acceptance of the contract but before closing are a few examples of issues that can arise.