
This Houston real estate seller FAQ gives plain-English answers to the questions sellers ask most often when listing a home in Houston, Cypress, Katy, and Bryan–College Station. For the full overview of how I help sellers, see the
Selling a Home in Houston page. Can’t find what you’re looking for?
Reach out — I’m happy to answer.
How to Use This Houston Real Estate Seller FAQ
Six categories below cover the seller-side journey end-to-end. Click any topic to jump straight to it — or scroll through the whole page if you want the full picture.
- People & Roles — listing agents, brokers, REALTORS, buyer-agent compensation in 2026
- Pricing & Listing Strategy — CMA, list price, days on market
- The Listing Agreement — commission, term, IABS form, cancellation
- Marketing & Showings — photos, single-property websites, MLS, open houses
- Offers, Negotiation & Closing — multiple offers, option period, title, seller costs
- Special Situations & Houston Terms — capital gains, tenant-occupied, 1031, HOA, MUD
- Ready to Get Started?
People & Roles
What is a Texas real estate listing agent?
A listing agent — sometimes called a seller’s agent — is a Texas real estate licensee who represents the seller in a property transaction. The listing agent’s job is to price the home, market it broadly, vet incoming offers, negotiate on the seller’s behalf, and shepherd the contract through inspection, appraisal, title, and closing. In Texas, all real estate licensees operate under the supervision of a licensed broker and follow
Texas Real Estate Commission rules.
What is a Texas real estate broker?
A Texas real estate broker is a licensed professional who has completed advanced education and experience requirements beyond a salesperson’s license — including a minimum of 270 hours of qualifying real estate courses, 630 hours of related education, four years of active license experience, and passage of the Texas broker exam. Brokers can operate their own firms and supervise teams of agents. As the broker of Houston Prime Realty, I personally handle most of my listings end-to-end.
What is a REALTOR®?
A REALTOR® is a real estate agent or broker who is a member of the National Association of REALTORS® (NAR). REALTORS® commit to a Code of Ethics that goes beyond what state licensing requires. All REALTORS® are real estate agents or brokers — but not all agents are REALTORS®. Membership is generally required to access local MLS systems.
What’s the difference between a listing agent and a buyer’s agent?
A listing agent represents the seller’s interests in a transaction; a buyer’s agent represents the buyer’s. In most Texas transactions, each side has its own agent. The two agents negotiate price and terms, but each owes their fiduciary duty to their own client. A listing agent cannot also represent the buyer in the same deal unless both parties consent to “intermediary” representation in writing.
How are listing agents paid in 2026?
Listing-side commission is negotiated up front and spelled out in your written listing agreement before the home goes on the market. After the August 2024
National Association of REALTORS settlement, the listing agent’s fee can no longer be advertised on the MLS together with an offer of compensation to the buyer’s agent — but the listing-side commission itself is unchanged in concept. You and I agree on it in writing, and it’s paid out of sale proceeds at closing. For the full overview of pricing, marketing, and negotiation that the listing-side commission pays for, see the
home-selling process page.
Do I have to offer to pay the buyer’s agent?
No. After the August 2024 NAR settlement, sellers are no longer required to offer compensation to a buyer’s agent, and your MLS listing cannot publish such an offer. You can still choose to offer a concession that helps cover a buyer-side fee — many sellers do, because most 2026 buyers arrive with a written buyer representation agreement and may request the seller contribute as part of their offer. Offering or declining is a case-by-case decision. We’ll talk through your options before listing and again whenever an offer comes in.
Pricing & Listing Strategy
What is a comparative market analysis (CMA)?
A comparative market analysis (CMA) is a detailed pricing study built from current
Houston Association of REALTORS MLS sales data. I pull recent comparable sales in your neighborhood — same approximate square footage, bedroom count, condition, and lot — then adjust for differences and weight by recency. The CMA produces a defensible list-price range based on what real buyers have recently paid for similar homes. It’s the foundation of every listing I take.
Should I list above market, at market, or below market value?
Most Houston-area sellers do best listing at or very slightly above true market value. Listing far above market value typically backfires — the home sits, “days on market” builds up, and serious buyers assume there’s something wrong with it. Listing below market can drive a multiple-offer situation in hot neighborhoods (Cypress, Katy, Memorial), but it only works when there’s clear, current demand for that specific home type. We’ll decide strategy together once we look at the CMA.
How long do Houston homes typically take to sell?
The Houston-area timeline from listing day to closing day typically breaks down like this:
- Pre-listing prep: 1–2 weeks for photos, repairs, and staging
- Time on market: 2–6 weeks for well-priced homes; longer for high-end or unique properties
- Contract-to-close: 30–45 days for financed buyers; 7–21 days for cash
Most sellers go from “let’s list” to “keys handed over” in 60–90 days. Price point, season, school-calendar timing, and neighborhood demand all shift the curve.
What is “days on market” and why does it matter?
Days on market (DOM) is the number of days a property has been actively listed on the MLS. Buyers and buyer’s agents watch DOM closely — a low number signals fresh, in-demand inventory, while a high number prompts the question “what’s wrong with it?” even when nothing is wrong. This is why accurate pricing from day one matters more than starting high and dropping later. A long-on-market listing usually sells for less than a correctly-priced one would have on week one.
Do I need to make repairs before listing my home?
Usually some, rarely all. Cosmetic touch-ups — paint, carpet cleaning, decluttering, landscape tidying — almost always pay for themselves. Major repairs are a judgment call: fixing a known foundation issue or a leaking roof often nets more than selling as-is, but replacing an aging-but-functional HVAC rarely does. We’ll walk your home together and build a punch list that maximizes return without overspending.
Do I need to stage my home?
Vacant homes and homes with very dated or heavy furnishings often benefit from light staging, even if it’s just a few rented pieces in the main living areas. Lived-in family homes usually just need decluttering, depersonalizing (family photos, kid art), and a deep clean. For luxury listings, full professional staging can be worth its cost. We’ll decide what’s appropriate for your specific home and price point.
What is a pre-listing inspection — and is it worth doing?
A pre-listing inspection is a property inspection ordered by the seller before listing — typically $400–$800 — that surfaces issues before a buyer's inspector does. The advantage: you control how (and whether) to address what's found, instead of reacting to the buyer's inspector during the option period.
Two things to know before ordering one. First, in Texas you're required to disclose its existence on your Seller's Disclosure Notice, and to provide the buyer a copy of the report if they ask for it. Second, the inspection really pays off only when you're willing to make the repairs it turns up — fixing things proactively means fewer renegotiation surprises later. If you'd rather sell as-is, the cost won't pay you back, and the disclosed report can become a negotiation point against you instead of for you.
Worth considering for homes over 20 years old or with known concerns. We'll decide together based on your specific situation.
The Listing Agreement
What is a listing agreement?
A listing agreement is the written contract between you and the listing broker that authorizes the broker to market and sell your home. It defines the listing-side commission, the term (typically 3–6 months), how the home will be marketed, what concessions you will or won’t authorize, and how disputes are handled. In Texas, all the key terms — commission, term, exclusivity — are negotiable.
What is the Information About Brokerage Services (IABS) form?
The Information About Brokerage Services (IABS) form is a TREC-required disclosure that explains the different types of real estate representation in Texas — seller agent, buyer agent, intermediary, and subagent — and confirms which type applies in your transaction. Texas brokers must provide this form to clients at first substantive contact. You can read the current version on the
Texas Real Estate Commission website.
How long should my listing agreement last?
Most Houston-area listings use a 3–6 month term. Three months is usually enough for well-priced homes in active neighborhoods (Cypress, Katy, Memorial, Spring); six months makes sense for unique properties, higher price points, or markets where the right buyer pool is smaller. Either way, if your home isn’t getting the activity we expect, we re-evaluate price, marketing, and presentation early — not at the very end of the term.
Can I cancel my listing agreement if I change my mind?
Cancellation rules depend on what your specific listing agreement says. Most standard listing agreements include conditions for early termination — sometimes by mutual written agreement, sometimes with a small fee to cover documented out-of-pocket marketing costs. Personally, I’d rather have a conversation about what isn’t working than hold a seller to a contract they regret signing. We can talk through any concern at any point.
Marketing & Showings
What does professional listing marketing include?
Every Houston Prime Realty listing includes the following as standard, not as add-ons:
- Professional HDR photography — the visual baseline that drives showing requests
- Drone / aerial photography when lot size, acreage, or location warrant it
- 3D virtual tour or video walkthrough so out-of-town and busy buyers can pre-screen
- Single-property listing website (see below) with photo gallery, virtual tour, and neighborhood details
- MLS listing with full syndication to Zillow, Realtor.com, Redfin, Trulia, Homes.com, and dozens of regional sites
- Quality yard sign with sign rider, plus printed flyers in a brochure box
- Centralized Showing Service for showing requests and post-showing feedback
- Strategic open houses when they fit the property and the market
- Same-day response to every buyer-agent inquiry — this alone closes deals
What is a single-property listing website?
A single-property listing website is a dedicated web page just for your listing — not just an MLS entry — with the full photo gallery, virtual tour, neighborhood overview, and contact form. I link it from yard-sign QR codes, listing flyers, and any paid promotion. Drive-by traffic from yard signs converts much better to qualified leads when there’s a dedicated landing page than when it goes to a generic search portal.
How does my home end up on Zillow, Realtor.com, and other sites?
Once your home is listed on the
Houston Association of REALTORS MLS (or the Bryan–College Station MLS for Brazos Valley listings), the data syndicates automatically to Zillow, Realtor.com, Redfin, Trulia, Homes.com, and dozens of Texas real estate sites. The MLS is the source of truth; the public sites mirror it (usually with a delay of hours to days). The Houston Prime Realty mobile app pulls directly from the MLS feed, so its data is live, not delayed.
Do I have to leave the house during showings?
Yes, almost always. Buyers and their agents need privacy to walk the home, open closets, discuss honestly, and picture themselves living there — none of which they’ll do naturally with the seller present. For most Houston-area listings, showings run through the Centralized Showing Service with confirmed time windows, so you can plan your absence. If you have a unique situation (large dogs, work-from-home, mobility issues), we’ll build a showing protocol that works for your life.
Are open houses worth it?
Sometimes — not always. A well-marketed open house during the first weekend of a listing can drive showings in family-friendly subdivisions and starter-home price points. For luxury listings, vacant homes, or homes priced for a narrow buyer pool, open houses rarely produce the buyer. I’ll be honest with you about when one helps and when it’s just a chore. Open houses also let neighbors who may know future buyers walk through, which is occasionally how a sale happens.
How do I get feedback after a showing?
The Centralized Showing Service automatically requests feedback from every buyer’s agent after each showing. I forward you a summary — what buyers liked, what gave them pause, and whether they’re considering an offer. After a couple of weeks of consistent feedback patterns, we’ll know whether the issue is price, presentation, or just buyer pool, and we adjust accordingly.
Offers, Negotiation & Closing
What is an earnest money contract?
An earnest money contract is the standard real estate purchase agreement used in Texas. When the buyer signs, they deposit a small percentage of the sales price with a title company as good-faith evidence of intent to purchase. The earnest money is held in escrow until closing, at which point it’s applied toward the buyer’s funds at the closing table. The exact amount is negotiable.
What is the option period from a seller’s perspective?
The option period is the defined window after contract signing during which the buyer can terminate the contract for any reason and recover their earnest money. The buyer pays a small “option fee” to the seller for this right. In Houston, option periods are typically 5–10 days. As the seller, you continue to perform under contract (no other showings if you’ve agreed to that, repairs you’ve committed to, etc.) — but you should know that the deal is most at risk during this window. Inspections and most repair-request negotiations happen here.
What does “multiple offers” mean and how should I handle them?
Multiple offers means more than one buyer has submitted an offer at roughly the same time — common with well-priced listings in active Houston-area neighborhoods. You generally have three options:
- Accept one outright if it clearly outpaces the others
- Counter the strongest offer on price, terms, or both
- Request “highest and best” from all interested buyers by a stated deadline (see below)
I’ll lay each option out for you and we’ll choose the strategy that best matches your goals and the buyer pool.
What is “highest and best” and when should I ask for it?
When you have multiple offers, you can ask all interested buyers to submit a single “highest and best” offer by a specific deadline. This gives every buyer an equal chance to put their strongest terms forward and lets you compare final offers side by side without back-and-forth negotiation. Highest and best works when the multiple-offer field is genuine — using it when buyers can sense there’s only one real bid can backfire.
What are seller concessions and how do they work post-2024?
Seller concessions are credits the seller agrees to give the buyer at closing — typically to help cover closing costs, prepaid taxes and insurance, repair credits, or (post-2024) the buyer’s agent fee. After the August 2024 NAR settlement, concessions toward a buyer’s agent fee are negotiated off the MLS, usually as part of the offer or in a pre-listing conversation. There’s no “right” amount — it depends on your home, your pricing, and what makes your listing competitive for the kind of buyers you’re trying to attract.
What happens if the buyer’s appraisal comes in low?
If the buyer is financing and the lender’s appraisal comes in below the contract price, you typically have four paths: (1) reduce the price to the appraised value, (2) keep the price and let the buyer pay the difference in cash, (3) split the difference, or (4) terminate the contract if neither side will move. Most Houston-area appraisal gaps get negotiated to a workable compromise. I handle these conversations on your behalf so the buyer’s agent and lender stay productive instead of confrontational.
Who pays for the owner’s title policy in Texas?
In most Texas residential transactions, the seller pays for the owner’s title policy — that’s the title insurance policy that protects the buyer against title defects. It’s a customary cost, not a legal requirement, so it’s negotiable in any contract. The premium is set by Texas Department of Insurance rules and runs roughly 0.5%–1% of the sale price.
What is a seller leaseback?
A seller leaseback is a contract provision that lets you stay in the home for a defined period after closing — usually to give you time to move into your next home. Terms vary: sometimes the seller pays daily rent to the new owner, sometimes it’s at no cost as part of the negotiation. Leasebacks are common when you’re buying your own next home and timing doesn’t line up exactly. We’ll document the terms precisely in the contract so expectations are clear on both sides.
What does it cost to sell a home in Texas?
Total seller costs in Texas typically run 6%–9% of the sale price and include:
- Listing-side commission: negotiated up front in your listing agreement
- Optional buyer-agent concession: if you choose to offer one (no longer set in MLS post-2024)
- Owner’s title policy: typically paid by seller in Texas, ~0.5%–1% of sale price
- Survey: $400–$600 if a new one is needed
- Property tax prorations: seller pays for days owned in the calendar year
- HOA transfer fees: varies by community, typically $200–$600
- Repairs or credits negotiated from the buyer’s inspection
- Mortgage payoff and any liens released through the title company
I’ll give you a seller net sheet at our first meeting so you know exactly what you’ll walk away with at closing.
Special Situations & Houston-Area Terms
Will I owe capital gains taxes when I sell my Houston home?
Maybe, but for most primary-residence sellers, no. Under current IRS rules, single filers can exclude up to $250,000 and married couples filing jointly up to $500,000 of capital gain on the sale of a primary residence — provided you’ve owned and lived in the home as your primary residence for at least two of the last five years. Investment properties and second homes don’t qualify for the exclusion and may owe capital gains plus depreciation recapture on the depreciated portion. Capital gains rules are tax law, not real estate law — talk to your CPA before closing if you think you might owe.
Can I sell my home while it’s still tenant-occupied?
Yes — with some additional planning. In Texas, a sale doesn’t break an existing lease; the new owner becomes the landlord and inherits the lease terms. That changes the likely buyer pool (most owner-occupant buyers won’t wait out a lease, but investors will), and it affects showing logistics. We’ll talk through whether to sell occupied, time the listing to a vacancy, or negotiate a tenant buyout that opens the home up to a broader buyer pool.
What is a 1031 exchange?
A 1031 exchange (named for IRS Section 1031) is a tax-deferral mechanism that lets an investor sell an investment property and roll the proceeds into another investment property without immediately recognizing capital gains. It requires strict timing (45 days to identify a replacement property, 180 days to close) and a qualified intermediary to hold proceeds. 1031 exchanges apply only to investment / business-use real estate, not primary residences. If you’re selling a Houston-area rental or investment property and considering a 1031, talk to a qualified intermediary and your CPA early — the timing rules are unforgiving.
What is a short sale?
A short sale is a transaction in which the homeowner sells for less than they still owe on the mortgage, and the lender agrees to accept the shortfall to avoid foreclosure. Short sales require lender approval and typically take an additional 30–90 days compared to a traditional sale. They affect the seller’s credit less severely than foreclosure but are not painless. If you’re underwater on a Houston-area home and considering a short sale, talk to me and to a real estate attorney early in the process.
What’s involved in selling an inherited or estate home?
Selling an inherited home in Houston has a few moving pieces: probate timing (whether title has cleared into the heirs’ or executor’s name), stepped-up cost basis for capital gains purposes, splitting proceeds across multiple heirs, and deciding whether to make repairs or sell as-is. I’ve helped multiple families and executors through this and can connect you with a real estate attorney when one is needed. The process can be calm and well-paced if it’s set up right from the start.
What is an HOA transfer fee?
An HOA transfer fee is the fee a homeowners association charges to update ownership records, prepare resale certificates, and transfer access (gate codes, amenity passes, etc.) when a home in the association is sold. In Texas, HOAs are legally required to deliver a resale certificate within 10 days of request, and they typically charge for it. Fees vary widely — $200–$600 is common for Houston-area subdivisions — and the contract specifies who pays.
What is a MUD district and does it affect my sale?
MUD stands for “Municipal Utility District” — a political subdivision that provides water, sewer, drainage, and sometimes other services to areas outside city limits. Many newer Greater Houston subdivisions in Cypress, Katy, and outlying areas are in MUDs. MUDs levy property taxes that show up on top of ISD and county taxes. When selling, buyers will care about the total tax rate; a Texas seller disclosure also requires you to identify MUD and other special-district status. We’ll include this clearly in your listing so there are no surprises during the buyer’s due diligence.
Why are Houston property taxes higher than other states?
Texas has no state income tax, which contributes to relatively higher property tax rates compared to most other states. Your total property tax rate is the sum of all the taxing entities that overlap your property — usually county, city (if inside city limits), ISD, MUD (if applicable), and any special districts like emergency services. Combined rates in Greater Houston typically fall between 2% and 3.5% of appraised value. Sellers sometimes worry this hurts marketability; in practice, Texas’s no-income-tax tradeoff is well-understood by relocation buyers and rarely kills a deal.
Ready to Get Started?
Have a question this Houston real estate seller FAQ didn’t answer? Or ready to list your home? The first step is a quick conversation — no pressure, no obligation.
Or read more about working with a Houston real estate listing agent.
Kevan Pewitt, Realtor & Broker · Houston Prime Realty
7058 Lakeview Haven Dr, Suite 108, Houston, TX 77095
We answer frequently asked questions or FAQ about selling Houston real estate and real estate in the surrounding communities of Greater Houston including Cypress, and Katy.
A real estate agent is a person licensed by the state to practice real estate. A Texas real estate agent may assist clients in buying and selling real estate and in the management and rental of properties. A real estate agent must work under the supervision of a real estate broker. Texas officially calls a real estate agent, a real estate salesperson.
A real estate broker is an experienced real estate agent with a minimum of four years experience practicing real estate. In Texas, a real estate broker must have a four year college degree or an equivalent number of college hours and pass a comprehensive real estate brokerage exam. Real estate brokers typically work as Realtors and can supervise teams of real estate agents working under them. All real estate agents must work for a real estate broker.
A listing agreement is a contract between a real estate owner and a real estate broker to market a property for sale or lease. A real estate broker charges a percentage of the sales price or a fee when the property sells and closes. In Texas, all listing agreements must be in writing. Texas Realtors use a listing agreement drawn by the Texas Association of Realtors. See a Sample Texas Real Estate Listing Agreement.
In a seller lease back, the seller receives a short-term lease on the home they just sold to the buyer. The lease is usually for a period of a few days, but can go up to several months. The main reason seller lease backs are used is to protect the seller from moving out of their home and having the buyer fail to close on the sale. Seller lease backs can also be used when a seller is not yet ready to move, but the buyer wants to lock in the sale by a certain date. Sellers will often use this at the end of a school year to allow their children to finish the school year before moving.
A financing contingency allows a buyer to terminate the purchase contract and receive a refund of their earnest money if the buyer is unable to obtain mortgage financing within a defined period of time. The contingency period is negotiated between the buyer and seller and usually lasts between 7 and 21 days. The buyer does not have to be disapproved for the mortgage, they only have to believe they will not be approved. The buyer must give written notice to the seller that they are terminating the contract under the financing contingency during the negotiated period. A financing contingency protects a buyer from losing their earnest money if they cannot obtain a mortgage loan on their home purchase.
An option contract is a form of earnest money contract in Texas that gives the buyer the unrestricted right to terminate the contract during a set period of time after signing the contract. The buyer must pay a fee to the seller for the right to terminate the contract. A real estate buyer will normally have their inspections performed during the option period. The buyer will then have the opportunity to negotiate with the seller for any repairs that are needed during the option period.
The option fee and option period are negotiated between the buyer and seller. A typical option period is 10 days. The option fee can range from $100 to $300. If the buyer fails to deliver the option fee to the seller or listing agent within 48 hours of the contract execution date, they will lose the right to terminate the contract under the option clause.
An earnest money contract is the most common form of real estate purchase contract in Texas. When using an earnest money contract, a buyer agrees to deposit a small percentage of the sales price with a title company to be held until closing as a sign of their good faith intentions to purchase a home or other real estate. The amount of the earnest money deposit is negotiable between the buyer and seller.
A REALTOR is a real estate agent or real estate broker who is a member of the National Association of Realtors. All Realtors are real estate agents or brokers, but not all real estate agents are Realtors. Realtors agree to abide by the National Association of Realtors Code of Ethics and Standards of Practice. Real estate agents must be a REALTOR to join a Multiple Listing Service commonly known as a MLS in order to market their listings to other Realtors and their real estate buyers.
A MLS listing is a real estate listing that has been offered for sale or for rent on the MLS system by a real estate agent who is a member of a Multiple Listing Service. A real estate broker who belongs to a MLS submits their listings to the MLS and offers a commission to any MLS member agent that submits an acceptable offer that results in a closed sale.
A Multiple Listing Service, commonly referred to as a MLS, are used by real estate brokers to market their listings to other real estate brokers. A real estate broker who belongs to a MLS submits their listings to the MLS and offers a commission to any MLS member agent that submits an acceptable offer that results in a closed sale. Sellers benefit by having their home listing marketed by thousands of real estate agents. Buyers benefit by being able to have one buyer agent show them any home on the market. Real estate brokers and agents benefit by having a level playing field where the smallest brokerage can compete with the largest multi-state franchise.
Centralized Showing Service provides Houston real estate listing agents a way to outsource their appointment scheduling and feedback systems on their real estate listings. Buyer agents call the CSS contact number to schedule showings on a subscriber’s listings. CSS logs all real estate agents that show a listing agent’s listing, schedules the appointments with the home sellers, provides access information to she showing agent, and requests and processes feedback on the listings from the showing agents.
One of the first steps in purchasing a home or real estate is to get a mortgage pre-approval letter from a bank, credit union or mortgage company. A mortgage pre-approval letter is customary when submitting an offer on real estate in Texas. Buyers can contact any mortgage lender and request a pre-approval letter. The lender will ask for income information for the applicant and will pull a consumer credit report on the applicant.
The pre-approval letter will state if the applicant is likely to be approved for a mortgage loan and the price of the home or real estate the borrower is qualified to purchase based on their credit and income. Mortgage pre-approvals are based on the applicants income credit at the time of application and can be revoked or modified if their income or credit changes prior to closing. Sellers of real estate expect a pre-approval letter to be submitted with all purchase offers and will generally not consider an offer without one.
Buyers can obtain a mortgage pre-approval letter from any mortgage lender they choose. Check out Mortgage Lender Directory for a list of lenders we have worked with.

I have had several clients who have paid off their mortgage or paid cash for their home and did not carry homeowners insurance. This can be very risky. Just take a look at this photo, these Houston real estate owners let their insurance lapse and now their partially burned home is sitting vacant and has become a neighborhood eyesore.
Some investors prefer not to have the yearly cost of property insurance and will self insure. Some Houston real estate owners will fail to renew their policies due to the rising cost of property insurance. Cash buyers will want to save on upfront costs of buying a home and decide not to purchase property insurance. There are many reasons Houston real estate buyers can have for not having homeowners insurance. However, one look at the photo of this fire damaged home should make you think twice. You can find the names of several professional insurance agents in our Business Directory who can help homeowners find an affordable homeowners insurance policy.

A termination option is a clause in the standard Texas real estate earnest money contract that gives a buyer the unconditional right to terminate the contract during the option period. The buyer must pay a fee to the seller for the right to have the termination option. The length of the option period and the option fee are negotiable between the buyer and the seller. In Texas, a typical option period is around 10 days and the typical option fee is about $10.00 to $30.00 per day. However, option fees and option periods are completely negotiable between the buyer and seller.
A short sale is a situation where a homeowner is attempting to sell a home that is worth less than the amount owed on its existing mortgage with their mortgage lender accepting the loss. The homeowner’s mortgage holder must approve the sale. It can take an additional 30 to 90 days to obtain the lender approval for a short sale offer.
A seller lease back is a contract provision that allows the seller to stay in their home for a period of time after the closing date of a home sale. The seller may be charged a daily rental rate or it may be at no charge to the seller, depending on the terms of the contract. The seller lease back provision in a real estate contract protects the seller from having to move out of their home prior to the closing and then finding out the buyer is unable to close on the sale. We recommend all home sellers ask for this in the contract negotiations. Without the seller lease back, the seller is expected to vacate the home prior to the closing.
A financing contingency allows a buyer to terminate the purchase contract and receive a refund of their earnest money if the buyer is unable to obtain mortgage financing within a defined period of time. The contingency period is negotiated between the buyer and seller and usually lasts between 7 and 21 days. The buyer does not have to be disapproved for the mortgage, they only have to believe they will not be approved. The buyer must give written notice to the seller that they are terminating the contract under the financing contingency during the negotiated period. A financing contingency protects a buyer from losing their earnest money if they cannot obtain a mortgage loan on their home purchase.


