Escrow, Inspections, and Appraisals: What San Antonio Home Sellers Need to Know When Selling Their Home

Navigating the Under-Contract Phase

 

Congratulations—you've accepted an offer! But the sale isn't final yet. Between contract acceptance and closing, several critical steps must be completed: the option period with inspections, the appraisal, title work, and final preparations for closing.

 

This "under-contract" phase typically lasts 30-45 days and involves coordination between multiple parties—buyers, agents, lenders, inspectors, appraisers, and title companies. Understanding what happens during this phase helps you navigate it smoothly and avoid surprises.

 

The Texas Option Period


What Is the Option Period?


In Texas, buyers typically negotiate an "option period" (usually 7-10 days) during which they can terminate the contract for any reason and receive their earnest money back. The buyer pays a small, non-refundable option fee (typically $100-500) for this right.

 

This is the buyer's "due diligence" period when they conduct inspections, verify property condition, review HOA documents, and confirm they want to proceed.

 

What Happens During the Option Period?


Home Inspection

Professional inspector evaluates the property's condition—roof, foundation, HVAC, plumbing, electrical, structural components, and more. Inspections typically take 2-4 hours.

 

Specialized Inspections (if needed)

✅ Foundation inspection (common in San Antonio due to soil conditions)
✅ Roof inspection
✅ HVAC inspection
✅ Pool/spa inspection
✅ Pest/termite inspection
✅ Septic system inspection (for homes not on city sewer)

 

Your Role During Inspections:

✅ Provide access to the home (including attic, garage, exterior)
✅ Ensure utilities are on (inspector needs to test systems)
✅ Secure pets
✅ Plan to be away during inspection (2-4 hours)

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After the Inspection on Your San Antonio Home

Buyers typically receive a detailed report listing everything found—from major issues to minor maintenance items. Not everything in the report is a problem requiring action.

 

Possible Outcomes:

 

Buyer Terminates During Option Period: If buyer finds significant issues or simply changes their mind, they can terminate during the option period and receive earnest money back. This is uncommon but possible.

 

Buyer Requests Repairs or Credits: Most common scenario. Buyer submits repair amendment requesting you fix specific items or provide credit at closing for repairs.

 

Buyer Proceeds Without Repair Requests: Less common but happens with cash buyers, investors, or buyers purchasing "as-is."

Negotiating Inspection Items

What You're Required to Fix vs. What's Negotiable


Texas law requires sellers to disclose known material defects, but you're generally not required to repair items found during inspection—this is negotiable between buyer and seller.

 

Common Inspection Requests:

 

✅ Major Systems Issues
HVAC not functioning, roof leaks, foundation concerns, plumbing or electrical hazards, structural problems.

 

✅ Safety Issues
Missing GFCI outlets, handrail violations, tripping hazards, fire safety concerns.

 

✅ Minor Maintenance Items
Leaky faucets, worn caulking, missing outlet covers, cosmetic issues.

 

Your Response Options:


1. Agree to Make Repairs
You hire contractors to complete work before closing. Get multiple bids, use licensed contractors, and provide receipts to buyer.

 

2. Offer Credit at Closing
Provide dollar amount credit to buyer at closing, allowing them to handle repairs after purchase. Often simpler than coordinating repairs during escrow.

 

3. Negotiate a Compromise
Agree to some items, decline others, or offer partial credit. Most inspection negotiations result in compromise.

 

4. Decline All Repairs
In strong seller's markets or as-is sales, you can decline repair requests. Buyer must then decide whether to proceed or terminate (if still within option period).

 

Our Approach to Inspection Negotiations:


We help you evaluate which requests are reasonable based on:

✅ Item severity (safety issues vs. cosmetic concerns)
✅ Cost to repair vs. impact on deal
✅ Market conditions (seller's vs. buyer's market)
✅ Comparable sales and standard practices
✅ Your timeline and ability to coordinate repairs


Goal: Reach fair resolution that keeps the sale on track while protecting your interests and avoiding unnecessary concessions.

 

The Appraisal Process

What Is an Appraisal?


If the buyer is financing the purchase, their lender orders an independent appraisal to confirm the property value supports the loan amount. The appraiser evaluates your home and compares it to recent comparable sales to determine market value.

 

Appraisal Timeline: Typically ordered within 7-10 days of contract execution, completed within 7-10 days of order, report delivered to lender within days.

 

What the Appraiser Evaluates:
✅ Recent comparable sales (similar homes sold in past 3-6 months)
✅ Property size, layout, condition, and features
✅ Location and neighborhood characteristics
✅ Lot size and outdoor amenities
✅ Upgrades and improvements
✅ Overall market conditions

 

Appraiser Access: You'll need to provide access (typically 30-60 minutes). Home should be clean and accessible, with all areas available for viewing.

 

Appraisal Outcomes:


1. Appraises at or Above Contract Price ✅
Most common outcome. Sale proceeds as planned.

 

2. Appraises Below Contract Price ⚠️
Less common but creates negotiation opportunity. 

 

Low Appraisal Scenarios

 

Why Appraisals Come in Low:

✅Contract price negotiated above market value (often in multiple offer situations)
✅ Limited recent comparable sales in the area
✅ Market conditions changed between contract and appraisal
✅ Appraiser used questionable comparables or methodology
✅ Property condition issues noted by appraiser

 

Your Options When The Appraisal Is Low

Option 1: Reduce Price to Appraised Value
You accept the lower price. Buyer proceeds with original financing terms at the appraised value.

 

Option 2: Buyer Makes Up the Difference
Buyer brings additional cash to closing to cover the gap between appraisal and contract price. Only works if buyer has extra cash available.

 

Option 3: Negotiate a Compromise
Split the difference—you reduce price somewhat, buyer brings extra cash to closing for the remainder.

 

Option 4: Challenge the Appraisal
If we believe the appraisal used poor comparables or missed key property features, we can provide additional comparable sales data to the lender and request reconsideration.

 

Option 5: Terminate the Contract
If neither party will budge, the deal may fall apart. Buyer gets earnest money back (if appraisal contingency exists), and you relist the property.

 

Our Strategy for Low Appraisals:


With roughly 1,000 transactions of experience, we've handled numerous low appraisal situations. We'll:

✅ Review the appraisal report for accuracy and methodology
✅ Provide additional comparable sales data if warranted
✅ Evaluate your position based on market conditions and alternative options
✅ Negotiate strategically to preserve the deal while protecting your interests
✅ Help you make informed decisions about price adjustments vs. remarketing

Title and Escrow

What Is Title Work?


The title company researches public records to confirm you legally own the property and have the right to sell it. They identify any liens, judgments, easements, or encumbrances that must be resolved before closing.

 

Common Title Issues:

✅ Unpaid property taxes or HOA dues
✅ Old liens from previous loans or contractors
✅ Judgment liens from unpaid debts
✅ Errors in property records or deed descriptions
✅ Unreleased prior mortgages

 

Most title issues are resolved quickly by paying off liens or correcting records. In rare cases, complex title problems can delay closing.

 

What Is Escrow?


"Escrow" refers to the period when the contract is executed but closing hasn't occurred yet. During this time, earnest money is held by the title company in a trust account, and all parties work toward meeting contract conditions.

Staying on Track to Closing

Key Milestones and Timelines:

 

Days 1-10:

✅ Option period and inspections
✅ Inspection negotiations
✅ Appraisal ordered and completed
✅ Buyer's lender processes loan application
 

Days 10-25:

✅ Title work completed
✅ Inspection repair negotiations finalized
✅ Any agreed repairs completed
✅ Buyer's financing moves through underwriting
Final loan approval (clear to close)
 

Days 25-30+:

✅ Final walkthrough (24-48 hours before closing)
✅ Closing documents prepared
✅ Closing scheduled
✅ Final utilities coordination

Common Delays

⚠️ Buyer financing issues (additional documentation needed, employment verification, credit issues)


⚠️ Title problems requiring resolution


⚠️ Appraisal delays or low appraisal renegotiation


⚠️ Repair completion taking longer than expected


⚠️ HOA document delays


⚠️ Buyer's home sale contingency (if applicable)

 

We proactively manage timelines, follow up with all parties, and address potential delays before they derail your closing.

Your Responsibilities During Escrow

Maintain Property Condition
You're obligated to maintain the property in the same condition as when the contract was signed (normal wear and tear excepted). Don't remove fixtures, landscaping, or items included in the sale.

 

Complete Agreed Repairs
If you agreed to repairs, complete them using licensed contractors and provide documentation to the buyer before closing.

 

Keep Utilities On
Maintain water, electric, and gas service through closing day for final walkthrough and buyer's inspection verification.

 

Prepare for Final Walkthrough
Buyer conducts final walkthrough 24-48 hours before closing to verify property condition and confirm agreed repairs are complete. Home should be clean, empty (if you've moved), and in agreed-upon condition.

 

Coordinate Your Move
Plan your move-out timeline to align with closing. In Texas, possession typically transfers at closing unless otherwise negotiated.

When Things Go Wrong

Buyer Tries to Terminate After Option Period
Once the option period expires, buyer can only terminate based on specific contract contingencies (financing denial, appraisal issues, title problems). We protect your rights if buyer attempts improper termination.

 

Buyer Requests Additional Repairs After Inspection
Once inspection negotiations are complete, additional repair requests are not required unless new issues arise. We'll evaluate case-by-case.

 

Financing Falls Through
If buyer's financing is denied, they can typically terminate and receive earnest money back (if financing contingency exists). We'll help you determine next steps—accepting a backup offer, relisting, or other options.

Final Walkthrough

What Happens:

✅ Buyer and their agent walk through the property 24-48 hours before closing to verify:

✅ Property condition unchanged since contract
✅ Agreed repairs completed satisfactorily
✅ All items included in sale are present
✅ No new damage occurred
✅ Systems functioning properly

 

Your Preparation:

✅ Home clean and empty (or as negotiated)
✅ All agreed repairs complete with documentation
✅ Utilities on and systems operational
✅ Garage door openers, keys, and manuals ready for buyer
✅ Any included items (appliances, fixtures) in place

 

If Issues Are Found:
Minor issues are typically resolved with credits at closing or quick fixes. Major issues (new damage, missing included items, incomplete repairs) may delay closing until resolved.

Frequently Asked Questions

Q. What is the option period in Texas real estate?
A. The option period (typically 7-10 days) is when the buyer can terminate the contract for any reason and receive their earnest money back. Buyer pays a small, non-refundable option fee ($100-500) for this right. This is their due diligence period for inspections.

 

Q. Do I have to fix everything found in the home inspection?
A. No. Texas sellers are not required to make repairs found during inspection—this is negotiable. Buyers may request repairs or credits, and you can accept, decline, or negotiate compromise based on item severity, market conditions, and overall deal strength.

 

Q. What happens if the appraisal comes in low?
A. If the appraisal is below the contract price, options include: you reduce the price, buyer brings extra cash, you negotiate a compromise splitting the difference, challenge the appraisal with additional data, or the deal terminates. Your agent will help you evaluate the best strategy.

 

Q. How long does the under-contract phase typically last?
A. From contract acceptance to closing typically takes 30-45 days. This includes the option period (7-10 days), inspection negotiations, appraisal (7-10 days to complete), buyer's financing approval, title work, and final preparations for closing.

 

Q. What is a final walkthrough and when does it happen?
A. The final walkthrough occurs 24-48 hours before closing, allowing the buyer to verify the property condition is unchanged, agreed repairs are complete, included items are present, and systems are functioning. Your home should be clean, empty (if moved), and in agreed-upon condition.

 

REVIEWS

Meagan Maldonado

The Realtor Who Makes You a Priority! Tami is incredible, to say the least—a total superstar! We are relocating to the area, and this amazing woman has been by our side from the moment we started viewing online listings. Once we landed to do physical walkthroughs, she got us into every home we wanted to see and provided helpful advice every step of the way. Even though she is clearly a very busy lady, she made our visit her top priority and never made us feel like a burden; she just kept giving more of her time. On our final house hunt day, we found "the one." She has been a powerhouse through negotiations and guiding us through the financials. Her unwavering support got us a fantastic deal and we could not be happier. A+++! I’d recommend Tami to anyone looking to purchase in the area. When you look up "extraordinary" in the dictionary, you’ll no doubt find Tami’s photo! Thank you 1000x over!

Kerry Halligan

Words cannot express how grateful I feel to have you representing my family in one of the most stressful times in life. Real estate agents are not all the same. Tami you are not at all like the average transactional agent. I would say every individual in or looking in the greater San Antonio area is missing out not having you on their side. Thank you for being you!

Majuana brown

I can’t say enough amazing things about my realtor, who also happens to be my sister. Tami helped us successfully sell three homes and purchase two homes plus acreage, and every single transaction was handled with professionalism, integrity, and incredible attention to detail. Tami treated our deals with the same care and diligence she gives all of her clients, never cutting corners and always advocating for our best interests. Her knowledge of the market, negotiation skills, and constant communication made what could have been overwhelming feel smooth and stress-free. I would trust her with any real estate transaction and highly recommend her to anyone looking for a realtor who truly goes above and beyond.

SCHEDULE A CONSULTATION WITH TAMI PRICE

Tami Price
Tami Price

Agent | License ID: 572393

+1(210) 620-6681 | info@tamiprice.com

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