What do I do during option period? (Houston: real estate, insurance)

[TheStupid]

OK, this must sound really stupid, but what do I do during my option period besides doing TREC inspection? This is about buying a used house in Houston, TX.

Am I allowed to go to the property anytime I want and probably sleep in the house?

I was reading this, but 2-5, 7, 8 cannot be obtained during option period.

Why would a Buyer terminate during the Option Period?

This includes but not limited to the following:

1. Inspection Report findings
2. Insurance & CLUE Report findings
3. Survey Issues such as encroachments, etc.
4. Title Commitment Issues such as liens, etc.
5. Flood Determination Reports
6. Seller Disclosure or Non-Disclosures
7. Buyer’s Financing
8. Property does not satisfy Underwriting Requirements
9. Property conditions and repair estimates



Diego Jaramillo - Houston Real Estate Blog : Residential Contract Termination Period Fees

[modster]

The option period is basically so you can do your inspections. Typically people get the structural guy, and a separate termite inspector. If it is an older house and issues arise in the inspection, (which they always do), then the buyer can either a) withdraw from the transaction altogether during the option period. b). go back to the seller and ask for repairs or more money off the price or an increase in the seller contribution to closing costs. c). Just proceed along if the inspection report is satisfactory. The other typical outcome is sometimes if there are a number of things that come up the buyer (or seller) will need a few extra days to obtain bids. Extensions can usually be arranged in such circumstances.

Also know that lenders frown on "repair allowances" so you can't have that anywhere. If the seller gives a concession it will pretty much have to be in a price reduction or contribution to the buyer's closing costs. The lender will also have limits on how much the seller can kick in on closing costs also, so if your deal starts out with closing costs assistance, then it will probably have to come off the price.

The other items on your list may also be issues that can arise. The underwriting requirement, however, extends beyond option period. If the house doesn't appraise, for example, that could be a factor that causes the transaction to crumble but would not have to happen within the option period for the buyer to be eligible for their earnest money back.

As far as going into the house at any time, no. It is basically for inspections.

[caldvn]

Originally Posted by TheStupid

Am I allowed to go to the property anytime I want and probably sleep in the house?

I haven't heard of this, but you can always talk to your realtor to arrange it. It would be up to the seller to agree to it.

[westres1]

No you cant sleep in the house...it isnt yours yet.