Personal Property vs. Real Property

When you negotiate a contract, make sure you know what furniture, fixtures and appliances, if any, are being sold with the property. Technically, anything that’s permanently affixed to or installed in the home is real property. Everything else is the sellers’ personal property. This definition leaves a gray area that can lead to disputes between a buyer and a seller. When The HBH Group lists your property for sale, we will work with you to be very specific in what is included and excluded from the sale. If we are working with you as a buyer, we will also make sure that everything is spelled out clearly and you AND the seller know what you are purchasing contractually.

We always ask our sellers what permanent fixtures they intend to remove and remind them to spell it out clearly in the required disclosure forms. We will help you define what built-in appliances are real or personal property. What about a shelving system? A chandelier? Window coverings? If the buyer wants furniture or other nonpermanent items as a part of the deal, we will work with you to spell out these details in the contract to minimize dispute and problems that can result.

Ask us to go over the standard contracts with you before you receive or make a purchase offer. That way, you’ll know what to expect and be prepared to negotiate the best deal you can get. This offer also goes for FSBO's. If you need our assistance, please call us for a no obligation visit to assist you in being as safe as possible in selling your home.

Why Should I Need an Option as a Buyer?

I am often asked this question by buyers and it amazes me that people don't naturally see the benefit of an option out of a real estate contract. After all, having a few days to "really" make up their mind on a contract is a real power tool to a buyer. Further, the option offers the buyer time to perform the needed due diligence on one of the largest purchases that an average person will ever make.

The option clause was added to our contracts in Texas many years ago simply to put the buyers more at ease. If you are not aware, real estate contracts in Texas do not qualify for the 3 day right of rescission rules that apply to bill of sale and retail purchase agreements. For this reason, the option clause was added to our real estate contracts by the Texas Real Estate Commission (TREC) and the Texas Association of REALTORS® so that buyers had a way out for any reason or for none. This right is purchased with a sum of money and MUST be in the hands of the seller within 48 hours of the execution date on the contract.

I repeat, that this is a HUGE power tool for a buyer in the state of Texas. It offers the buyer time to get the property inspected by a TREC-licensed real estate inspector. During the option period, the buyer has a great amount of leverage with the seller to negotiate needed repairs. This is a great opportunity to get repair costs negotiated and all this prior to closing.


Other buyers (particularly investors) use the option period to make offers on MANY properties at the same time in order get the best deal on one or two of them. This is a common practice (much to the chagrin of sellers), but is another method for controlling the buying process. In this case, the buyer may end up incurring a few dollars in option fees on those the contracts that they opt out of, but they can keep the best deal or deals they were able to negotiate. Many of the investors that work with The HBH Group use this method with great results.

If you have further questions about the option process or any subject that we can help you with, please call our offices at (512) 438-3772 or check out our website at http://www.TheHBHGroup.biz/ where you can get more information on buying and selling or leasing and managing real estate.