Do you have a property for sale in Corpus Christi? If so, there are a few things you want to be aware of when handling the closing process.
Earnest Money- Most people do not understand the concept of earnest money. Earnest money is the payment from the buyer that signifies commitment to the contract. The seller is committing to take their house off the market, and removing any potential of them selling the house to any other buyer. In return, the buyer pays earnest to let the seller know they are serious about buying the house so that the sellers time is not wasted. You want to be aware of how much earnest money the buyer is putting down. Typically 1-2% of the sales price of the house is a good number. You want to verify that the earnest money is received by the title company. I have seen many buyer drag their feet with paying the earnest money. If the buyer is not going to be serious, then you want to find a buyer who is.
Option Period- Many people think that when they sign the contract of an offer, that the offer is solid and cannot be broken. What they don't realize is that there is something called an option period. Typically 10 days long, the option period is the period of time the buyer has to inspect the property to make sure the property is worth the price and there are no hidden defects or problems. The buyer can walk away from the deal without forgoing the earnest money, as long as they do so within the option period. It’s important to be aware of the option period, and make sure they your buyer does not request an very long option. The shorter the option, the more serious the buyer, and less likelihood that they will back out of the deal.
Understanding how earnest money works, and exactly what the option period is will put you in a better position to have a successful sale.
