What to Expect During the Option Period

Your contract has been accepted—what now?

Once an offer is accepted and all parties have signed, the contract is officially executed. Most buyers feel a sense of excitement at this stage—until they hear the words option period. The option period begins the day after the contract is executed. During this negotiated number of days, the buyer has the option to proceed with the purchase or terminate the contract for any reason.

What Happens During the Option Period?

During the option period, the buyer is allowed to complete their due diligence and ensure the home is in a condition they are comfortable accepting. This typically includes hiring a third-party inspector to evaluate the property and, in some cases, bringing in additional licensed professionals if further inspections are needed. This is an important time to dig deeper into any defects or concerns that arise before fully committing to the purchase.

What If the Inspection Report Is Lengthy?

I’ve seen inspection reports on new construction homes that are 40 pages long. It’s important to remember that an inspector’s job is to document every defect they find, no matter how small. Some items may be minor fixes, while others could be more significant and costly. When reviewing an inspection report, it’s helpful to remember that no home is perfect. The focus should be on what matters most to you and your family.

Reviewing the Results

Inspection reports are typically delivered within 24 hours of the inspection. Once received, the buyer reviews the findings and determines which items are most important. At that point, the buyer generally has three negotiation options: requesting repairs, requesting a credit to cover the cost of certain defects, or a combination of both. In some cases, buyers may decide the home is not the right fit and choose to terminate the contract during the option period.

Final Thoughts

Not all repair requests will be accepted, and many are countered. Ultimately, the decision to move forward or terminate the contract is in the buyer’s hands. That decision must be made before the option period ends. The option period gives buyers peace of mind and the opportunity to move forward with confidence—whatever direction they choose.