Buyers can back out after inspection during Colorado’s mandatory 10-day option period for any reason—paying only the option fee ($100-$500), with full earnest money refunded, giving them leverage to exit on defects without penalty in Denver real estate deals.
Option Period Mechanics
After 15+ years in Denver real estate and thousands of transactions, I explain the option period as buyer’s free exit ramp: starting Day 1 post-acceptance, they order inspections (general, roof, sewer, radon—$500-$1,500 total). If issues arise—like foundation cracks or mold—they notify sellers, negotiate credits, or terminate fee-only. Post-option (Day 11+), earnest (1-3%) risks on financing/appraisal contingencies only; full waiver locks them in. Sellers can’t force repairs here—it’s designed for discovery.
Deadlines are strict—miss them, deal proceeds.
Denver-Specific Inspection Exits
Highlands Ranch real estate near Mountain Vista schools often triggers HOA reviews ($150-$400 fees, covenants checked alongside inspections), letting buyers bail on reserves shortfalls. Littleton bungalows flag clay pipe collapses common in expansive soils—buyers walk on $10K+ sewer quotes. Core Denver homes reveal urban drainage woes or historic wiring. Market cycles influence: spring frenzy pressures quick waivers, balanced winters allow thorough exits. Douglas County lots expose grading issues; compared to Littleton flexibility, Highlands Ranch adds village-specific snags. Radon (common here) prompts 7-10% walkaways.
Pre-inspections by sellers reduce surprises.
Practical Advice for Buyers and Sellers
| Phase | Buyer Right | Seller Prep |
|---|---|---|
| Days 1-10 | Exit fee-only | Disclose fully |
| Post-Option | Contingency only | Baseline inspection |
| Negotiation | Credits/repairs | Cap at 1-2% price |
Buyers, inspect Day 1-3—prioritize structural, document for counters, terminate early if deal-breakers.
Sellers, provide Seller’s Disclosure upfront—offer pre-list inspections to filter tire-kickers.
My hands-on, concierge-level service navigates inspections block-by-block, weighs school/HOA fits through market cycles, builds pricing from local sales, and negotiates relentlessly for smooth paths. Clients are long-term relationships and friends, not transactions—integrity, honesty, transparency, and relentless work ethic protect all sides.
If inspection exits concern your Denver real estate plans—Littleton, Highlands Ranch details—reach out anytime. I’m here for a no-pressure conversation and honest guidance tailored to the Colorado housing market.
Mile High Home Group - Welcome to Denver 
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