Buyer's Option
The Buyer's Option Period is the most significant paragraph in the contract. So of course they put it last.
It gives the Buyer, for blank dollars, the option to back out of the contract for any reason or even for no reason at all, during the first blank days.
This creates time for buyer inspections, estimates, and to negotiate repairs and concessions with seller.
If you still have not read the contract form, please read paragraph 23 of your contract now.
If repairs needed are of the type that a lender is going to likely require, then actual repairs are normally negotiated. Otherwise, in lieu of repairs, a contribution from the seller toward the buyer's share of closing costs is often negotiated. This results in cash left over (less out of pocket) for the buyer. The buyer can then choose the repair professionals and oversee the work. Or choose to delay or do the work themselves. The advantage to the seller is not having to schedule and manage the work. The cost is often approximated though having bids is a good idea.
It gives the Buyer, for blank dollars, the option to back out of the contract for any reason or even for no reason at all, during the first blank days.
This creates time for buyer inspections, estimates, and to negotiate repairs and concessions with seller.
If you still have not read the contract form, please read paragraph 23 of your contract now.
If repairs needed are of the type that a lender is going to likely require, then actual repairs are normally negotiated. Otherwise, in lieu of repairs, a contribution from the seller toward the buyer's share of closing costs is often negotiated. This results in cash left over (less out of pocket) for the buyer. The buyer can then choose the repair professionals and oversee the work. Or choose to delay or do the work themselves. The advantage to the seller is not having to schedule and manage the work. The cost is often approximated though having bids is a good idea.
PB Status
When the property is in the option period, the correct status to show in MLS is PB. This is short for under a Pending contract and open to consider Back-Up offers. Pending Backups for short. Usually if a back-up offer is accepted the seller will let the buyer know. This can put some pressure on a buyer to ask for less concessions after inspection. More often the potential back-up buyer will simple ask the seller's brokers to contact them if the contract might fall apart. Each option has pros and cons for both buyer and seller. Should you be part of a back-up you will want to discuss your specific situation with John.
When the option period ends, the status can be changed to P, which is simply Pending. It is very common for the PB to P change to be skipped. There are many ways a contract can fall apart besides inspection issues. So being open to back-ups all the way up to the closing of the transaction doesn't hurt a seller.
When the option period ends, the status can be changed to P, which is simply Pending. It is very common for the PB to P change to be skipped. There are many ways a contract can fall apart besides inspection issues. So being open to back-ups all the way up to the closing of the transaction doesn't hurt a seller.
