The Buying Series: Offer Accepted? Then What?
Seller accepted your offer? Hooray! So, what happens now? The time between offer acceptance and entering escrow is a very precarious one that can leave buyers wondering what’s to come.
Not to worry, we’ll walk you through what can happen after a seller accepts your offer.
The Option Period & Money
Under normal circumstances, the option period is anywhere from 3 to 10 days. The option period money is nonrefundable money in the form of a personal check that goes to the seller. This money must be delivered to the seller during the first three days of the contract. If selected in the sales contract, the option period money will go towards your closing costs at closing. (Typically $100- $500 - credited back at closing.)
Learn more about the Option Period and Option Funds here.
The Earnest Fee Money
Generally, the earnest fee money is 1% of the sales price that is delivered to the title company in the form of a personal check. This money is refundable up until the end of the option period. The earnest money is refundable at certain points after the option period has expired but it is not an easy task to achieve. Therefore you should be confident moving forward that you are going to purchase the home. The earnest money is kept at title at an escrow officer of that title company. At closing the earnest money is credited towards your closing costs. (Typically 1% of the offer amount (negotiable) - credited back at closing.)
Learn more about the Earnest Money fee here.
The inspection occurs during the option period by a licensed inspector. During the inspection, you will receive a detailed report about your potential homes replacement and repair needs. The inspection should also give you piece of mind about your purchase. (Obtained during a buyer's option period in time enough to receive the report and negotiate any requested repairs (if applicable)).
This typically runs $350-$700 +/- depending on size and age of your new home. We are happy to assist in helping you to locate top preferred inspectors with the most competitive pricing.
After inspection is done, the seller and buyer negotiate repairs of the home. This
is done in two ways, 1) the repairs are done by the seller before closing and the
seller furnishes receipts as proof of the repair OR 2) the seller gives the buyer
closing costs in lieu of repairs. This way you will do the repairs or replacements
Any requested repairs that buyers would wish for the seller to complete prior to
closing / funding are typically negotiated during a buyer’s option period.
Please be advised that Lending Required Repairs are typically separate and are
oftentimes due to the request of an Appraiser who assessed the property’s value.
We can discuss this more in detail together.