You found the right home in Southlake, but now the clock starts ticking. In Texas, the option period can be your safety net, giving you time to inspect, ask questions, and decide whether to move forward. If you understand how it works, you can protect your budget and negotiate with confidence. This guide breaks down what the option period is, how to use it well in Tarrant County, and smart strategies in competitive Southlake and nearby Keller markets. Let’s dive in.
What is the Texas option period?
The option period is a short, negotiated window in the Texas purchase contract when you can terminate for any reason. You pay a non-refundable option fee for this right. During this time, you can complete inspections, review disclosures, and decide whether to proceed.
The most common contract is the TREC One to Four Family Residential Contract. It includes a specific paragraph for the option period, number of days, and the fee you will pay. You can review official forms and guidance from the Texas Real Estate Commission.
How it protects you
- You can terminate for any reason within the deadline by giving written notice.
- You can negotiate repairs or credits after inspections, then decide whether to proceed.
- If you terminate properly within the period, your earnest money is typically refundable per the contract.
Key contract basics to know
- Option fee and days are negotiable. You must deliver the fee as stated in the contract and on time. Keep proof of delivery.
- Termination must be in writing and delivered before the deadline using a method allowed in your contract. Save confirmations, such as email receipts.
- Earnest money and option fee are different. Earnest money shows good faith and is usually held by the title company. The option fee is separate consideration for the right to terminate and is typically non-refundable.
- Missing the deadline ends your unrestricted right to terminate. Other contingencies may still apply if they are part of your contract.
For consumer-friendly explanations of Texas contracts, explore Texas REALTORS resources.
Typical timelines and fees in Southlake
In many Texas markets, option periods are commonly 5 to 10 days. In competitive Southlake neighborhoods, buyers often offer 0 to 3 days or even waive the option to strengthen an offer. Keller can be similar, but conditions vary by price point and submarket.
Option fees are often $100 to $500. In very competitive situations or higher-end homes, you might offer a higher fee for a shorter option period. Both the length and the fee are negotiable and should align with your strategy and the local market.
If you want broader market context, the Real Estate Center at Texas A&M University provides regional housing analyses that can help frame supply and demand.
How to use your option period: step by step
- Pay the option fee as required and confirm delivery.
- Schedule a general home inspection right away, preferably day one.
- Line up specialists if needed, such as foundation, roof, HVAC, or WDI (termite) experts.
- Review seller disclosures, surveys, and any permits or past repair records.
- Get repair estimates for major items to support negotiations.
- Submit your inspection objections or repair requests in writing before the deadline.
- Negotiate solutions: seller repairs, closing credits, or price adjustments.
- If you choose to terminate, deliver written notice on time and keep delivery proof.
- If you proceed, document agreed repairs or credits in writing and track timelines.
If you need more time, you can request an extension in exchange for an additional option fee. The seller is not required to agree, so ask early if needed.
Inspection costs in Tarrant County
- General home inspection: about $300 to $700
- WDI or pest inspection: about $50 to $150
- Sewer scope: about $100 to $300
- Roof evaluation: about $150 to $400
- Foundation or structural: about $300 to $1,000+
- HVAC, plumbing, electrical specialists: about $100 to $400 each
To find qualified inspectors and learn more about standards, visit the American Society of Home Inspectors.
Competitive offer strategies in Tarrant County
- Offer fewer option days with a higher fee to signal certainty.
- Prioritize fast inspections so you can negotiate early.
- Ask your agent to check local norms through current MLS data to avoid overpaying on the option fee or undercutting your leverage.
- Use clear, concise repair requests supported by estimates. Sellers respond better to specific, documented asks.
Local listing behavior and norms shift. Your agent can review current activity in the regional MLS, such as NTREIS, to align your offer with what sellers are accepting right now.
Common pitfalls to avoid
- Missing the deadline. Set multiple reminders and confirm delivery of all notices.
- Delaying inspections. Vendor schedules fill quickly in Southlake, especially during peak seasons.
- Relying only on the general inspection. Order specialists if anything major is flagged.
- Not clarifying who receives fees. The contract should specify who holds earnest money and where the option fee is delivered.
Local tips for Southlake and Keller buyers
Southlake is a high-demand area, so expect tight timelines. Book inspectors immediately after your offer is accepted and prepare for a shorter option period. In nearby Keller, practices vary by neighborhood and price band, so match your strategy to local activity.
If you want to explore city services, permits, and local context, check the City of Southlake and City of Keller websites. These can help you plan for future projects and better understand the area.
Bottom line
The Texas option period is one of your strongest protections. When you use it well, you can uncover important issues, negotiate with the seller, and decide with confidence. In competitive Southlake and Keller markets, the right mix of timing, fee, and inspection strategy can help you secure the home you want while protecting your interests.
If you are weighing offer strategies or timing your inspections, our team can help you navigate each step with clarity and speed. Reach out to the Pickard Real Estate Group for local guidance tailored to your goals.
FAQs
What is the option period in a Texas home purchase?
- It is a negotiated window in the TREC contract when you can terminate for any reason by paying a non-refundable option fee and giving written notice before the deadline.
How does the option fee differ from earnest money?
- The option fee is separate consideration for your right to terminate and is typically non-refundable, while earnest money shows good faith and is usually refundable if you properly terminate within the option period.
How many days should my Southlake option period be?
- Five to ten days is common, though Southlake’s competitive market often sees 0 to 3 days; choose a length that fits inspection scheduling and your risk tolerance.
Can the seller refuse repair requests after inspections?
- Yes, the seller can decline; you can accept the home as is, negotiate a credit, or terminate within the option period if that right remains.
What if I miss the option period deadline to terminate?
- You lose the unrestricted right to terminate; other contract contingencies may still apply if included, but the option-based termination window closes.
Who should hold the option fee and earnest money?
- The contract can specify; earnest money is commonly held by the title company, while the option fee delivery should follow the contract’s instructions and proof of receipt should be kept.
