If you’re buying or selling a home in North Texas, you’ll see something called an Option Period in your contract — a short window that gives buyers time to inspect the home and back out if necessary. Whether you’re the buyer or the seller, understanding this timeline can save you thousands (and a ton of stress).
What Is the Option Period?
In Texas, the Option Period is a negotiated number of days after the contract is executed during which the buyer can terminate for any reason — no questions asked. To secure that right, the buyer pays an Option Fee directly to the seller via the title company.
Think of it as the buyer’s “inspection and due-diligence window.” During this time, inspections happen, repair requests are made, and decisions are finalized about whether to move forward with the purchase.
Typical Length and Fees in North Texas
Most Option Periods in Collin, Denton, and Dallas counties run 5–7 days, though it can vary depending on how competitive the offer is.
-
Option Fee: Commonly $200–$500
-
Payment Timing: Must be delivered within 3 calendar days of contract execution
-
Where It’s Paid: To the title company, which disburses it to the seller
If the buyer backs out during the Option Period, they lose the option fee but get their earnest money refunded. If they continue, the sale moves toward closing as normal.
What Buyers Should Do During the Option Period
Buyers should treat this week as a sprint, not a stroll. Here’s how to use it wisely:
-
Schedule Inspections Immediately. Typically, you'll start with a general home inspection, then hire specialists as recommended.
-
Review the Seller’s Disclosure. Look for known issues or repairs that might affect your inspection focus.
-
Get Contractor Bids if Needed. For major repairs, quick estimates help guide negotiations.
-
Submit a Repair Amendment Promptly. Don’t wait until the final day — sellers need time to respond.
In a fast-moving North Texas market, delays can cost you leverage or even your deal.
What Sellers Need to Know
For sellers, the Option Period means your home is “under contract,” but not yet fully locked in. You can’t accept backup offers unless the buyer terminates.
Smart sellers use this time to:
-
Stay responsive — prompt communication builds buyer confidence.
-
Be realistic about inspection repairs — focus on legitimate issues, not cosmetic ones.
-
Keep the property in showing condition — if a deal falls through, you’ll want to relist quickly.
Common Myths About the Option Period
“The buyer can extend it anytime.”
✅ Not automatically. Any extension must be agreed to in writing by both parties, usually with another option fee.
“If the buyer backs out, they lose everything.”
✅ Not true. They only lose the option fee, not their earnest money, as long as termination happens before the deadline.
“The seller can keep showing the home.”
✅ Technically yes, but it's not common. You can allow backup showings, but you can’t sell to another buyer unless this contract terminates.
FAQs
How do I know when my Option Period ends?
It ends at 5:00 p.m. local time on the last day listed in the contract. Always verify the date and time — missing it can cost a buyer their right to terminate.
Can the buyer renegotiate price during the Option Period?
Yes. This is the time to request repairs or price adjustments based on inspection findings.
What if the inspector finds foundation issues?
The buyer can request repairs, ask for credits, or walk away — all within the Option Period window.
Local Insight from a North Texas Realtor
In Frisco, McKinney, Plano, Prosper, Little Elm, etc I see many buyers underestimate how fast those five to seven days fly by. As soon as your offer is accepted, you should already have your inspector’s number saved and your schedule cleared.
For sellers, understand that a smooth Option Period often determines whether the deal holds together. Quick responses and reasonable negotiations can mean the difference between closing on time and starting over.
Final Thoughts
The Option Period protects both sides — it gives the buyer a safety net and the seller a committed, good-faith deposit. Handle it efficiently, and it sets the tone for the entire transaction.
If you’re planning to buy or sell in Frisco, Prosper, McKinney, or anywhere in Collin County, I’m always happy to help you navigate the details.
— Logan Walter, North Texas Realtor
