Can’t Decide Can't Decide Which Home to Buy? $300 Holds 3 Homes 10-14 Days in Texas.

I recently read in AR about a tactic showing up where buyers bid high on homes to secure a contract on them then why the home under appraises, the price is renegotiated. Legal? Absolutely. Ethical? It's is a legal tactic.

When my buyers can't decide which home to buy, out of say 2 or 3 properties, I suggest they put them all under a Termination Option, at any price, while they decide which one they want. The Termination Option Period (TOP), which is usually 10 days but can be negotiated to 14, usually costs $100 per home with no risk of losing the Earnest Money if they terminate within the bounds of the Option Agreement. They can always renegotiate the price, or anything else for that matter, during the TOP and back out if they can't get the deal they want. The state of Texas, maybe other states too, has given this priceless option, or loophole, to buyers to take as many homes off the market with little or no risk while they decided which home is best for them at a very low cost. There is no contractual obligation, whatsoever, by the buyer during this time frame. Is it fair to sellers? I guess the state thinks so. Personally, I think it creates more of a hostage situation for the seller. Wait while we decide whether or not we want to buy your home. Sure we want to close and move in in 21 days and we'll let you know in 14 days whether or not we REALLY want to buy your home.

Then, think about it this way...Sellers can take advantage of this option also by taking their competition off the market for a few days using the same strategy. After all, our Earnest Money Agreement does not ever state that the party putting the home under the TOP has any obligation or even intent to purchase the home, just an option to purchase. So, if you have a listing and there another listing just like it down the street at a lesser price, your seller can put that other home under option and be the only home on the market for up to 14 days for $100. Once again, Texas has created and left this loophole wide open for years.

How can it be fair to the buyer and seller? By doing away with the TOP and not tying the seller into sitting on their hands for 10-14 days waiting for the buyer to decided whether they want the home and how much they will demand in way of repairs, allowances or price deductions. Instead create a written agreement that does not bind either party to anything except to allow an unlimited amount of time for a prospective buyer to perform inspections, and THEN make an offer based on the inspection results. No more renegotiating the offer up to the last minute of the TOP. If another buyer comes in with an "as is" offer before the first buyer comes back with an offer, then let the sellers choose who they want to work with. That's a free market system and no one looses time or money. What do you think?

Katy Texas Real Estate

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Dale Ross, RE/MAX Fry Road, Katy, Texas