In Texas, you have AN OPTION...
Buyers can have anxiety surrounding a home purchase. After all, it IS the largest purchase most people will make in their lifetime! The loan, picking the "perfect" home, the "right" neighborhood with the BEST schools...and it can all lead to a case of cold feet.
Luckily, the Texas contract has a provision to help ease any of the buyer's fears...it's called the Termination Option, or as it's often referred to as the "Option Period".
How does it work?
For a negotiable fee - usually in the neighborhood of $50-$200 - and for a negotiable amount of time - usually between 5-14 days - the buyer has the right, or OPTION, to back out of the contract for any reason whatsoever. The earnest money is then refunded back to the buyer, and Mr. and Mrs. Buyer can walk away with very little lost.
The #1 reason I've seen for buyers exercising their option is due to a failure to negotiate repairs with the seller during this time frame. Or perhaps the home inspection revealed major problems with the home - mold, foundation issues, etc. But it doesn't matter if it's inspection related or not. The buyer could have a bad dream about the home, find a better home or simply change their mind about purchasing entirely.
Should the buyers NOT exercise their option to terminate, the option fee that was paid becomes a credit to them at closing. Easy, peasy!
Have more questions about buying a home in Texas? Ask a REALTOR that you trust to guide you through the process! You've got plenty of OPTIONS...