You found a Southlake home you love. Now comes a detail that can protect your budget and your peace of mind: the Texas option period. This short window gives you the right to investigate the property and decide how to move forward without risking your earnest money. In this guide, you’ll learn what the option period is, how it works in Southlake’s luxury market, which inspections to prioritize, and smart negotiation moves to use the time well. Let’s dive in.
Texas option period basics
The option period is a negotiated number of calendar days in your Texas purchase contract. During this time, you have the unilateral right to terminate for any reason by delivering written notice to the seller before the deadline. This right exists only if the option clause is included in your contract and you pay the option fee.
You will see two separate payments in most Texas deals. The option fee is paid to the seller as consideration for your right to terminate. It is usually nonrefundable if you cancel under the option, though it is often credited back to you at closing. The earnest money is a separate deposit held in escrow by the title company. Your earnest money is typically refundable if you terminate properly within the option period or under other contract contingencies.
The clock starts on the effective date of the contract. If you want to terminate, you must deliver written notice as specified in the contract before the option period expires. This is a strict deadline. Work closely with your agent to follow the delivery method and timing in your contract.
Southlake market norms
Southlake sits in an upscale corner of Tarrant County where desirable listings can draw multiple offers. That dynamic often affects option terms. Sellers in competitive price points may favor shorter option windows or higher option fees. Buyers relocating or purchasing complex luxury properties often ask for more time to coordinate specialty inspections and contractor visits.
Typical option lengths in Texas range from 3 to 10 days for standard homes. For luxury or complex properties, 7 to 14 days is common and helps you schedule specialist evaluations. In hot situations, some sellers push for 1 to 2 days or even a waiver. Short options increase risk because you have less time to identify and price repairs.
Option fee amounts vary by property and competition. Across Texas, ordinary resale homes often see $100 to $500. In parts of Southlake, buyers may offer $500 to $2,500 or more to strengthen an offer or secure a longer window. Every term is negotiable, so align the fee and length with the inspections you need.
Plan your inspections
The option period is your due diligence window. Book your general home inspection immediately after your contract is executed. Inspectors often schedule within 24 to 72 hours, but that can stretch in busy seasons. If the property includes complex systems, coordinate specialty inspections right away.
High-priority inspections for many Southlake luxury homes include:
- General home inspection. A full assessment of major systems like foundation, roof, electrical, plumbing, and HVAC.
- Structural or foundation evaluation. Expansive clay soils in North Texas can affect foundations, so an engineer’s opinion is valuable if there are signs of movement.
- Roof inspection. Helpful for older or high-end roofing.
- Wood-destroying insect inspection. Often standard and sometimes required by lenders.
- Sewer scope. A camera review can reveal costly issues in older lines or landscaped areas.
- Pool and spa inspection. Common in luxury homes and worth a focused look at equipment, structure, and finishes.
- Specialty systems. Geothermal, solar, smart-home tech, elevator, detached guesthouses, or extensive AV may need specialized pros.
Expected cost ranges vary with size and complexity. A general home inspection often runs $300 to $600. A structural engineer can be $500 to $2,000+ depending on scope. Sewer scopes are often $150 to $400, and pool inspections $150 to $500. Trade specialists like roof or HVAC technicians commonly charge $100 to $500 each. Budget more for large properties with multiple systems.
Seven-day timeline example
A smooth option period follows a clear plan. Here is a simple seven-day model you can scale up or down based on your negotiated length:
- Day 0: Contract goes effective and the option period starts. Pay the option fee per the contract. Begin scheduling inspectors.
- Days 1 to 3: Complete the general inspection and any urgent specialty inspections. Order follow-up evaluations if needed.
- Days 3 to 5: Bring in contractors for quotes on major items. Avoid guessing on repair costs.
- Days 5 to 6: Review reports and bids with your agent. Decide whether to request repairs or credits, or to terminate.
- By end of Day 7: If you decide to terminate, deliver written notice before the deadline using the contract’s required method.
Negotiation strategy that works
Use the option period to build leverage with facts, not fear. Focus on major systems first. Foundation, roof, and HVAC deserve priority because they influence safety, longevity, and long-term cost more than cosmetic items.
Smart moves to consider:
- Lead with the big items. Identify structural, roof, pool, plumbing, and electrical issues before discussing minor fixes.
- Get written quotes. Contractor bids turn inspection notes into numbers and help you request realistic repairs or credits.
- Match time to complexity. If you are relocating or buying a property with multiple systems, ask for a longer option period. Offer a higher option fee if it helps secure that time.
- Know your limits in competition. Shortening or waiving the option can strengthen an offer but increases risk. If you shorten the window, preload your schedule with inspectors and contractors to move fast.
- Keep your lender looped in. Lender-required repairs that surface during appraisal or underwriting are separate from your option rights. Align timelines so you are not surprised late in the process.
Risks and safeguards to remember
The option period is your most flexible safety net. If you terminate on time and by the contract’s method, you usually preserve your earnest money. The option fee is typically nonrefundable, though the contract often credits it back to you at closing if you proceed.
Once the option period expires, your unconditional right to terminate under that clause ends. Other contingencies, like financing or appraisal, follow different timelines and rules. If you miss a deadline, you may put your earnest money at risk.
Seller disclosures are helpful but not a substitute for inspections. A Seller’s Disclosure Notice addresses known issues. Your inspections can uncover items the seller did not know about, especially in complex properties.
Local conditions matter. In Tarrant County, expansive clay soils can impact foundations. Pools, large roof systems, and elevated decks add complexity. Plan enough time for any specialist who needs to assess these features.
Buyer checklist for Southlake
Use this quick list to stay on track:
- Decide your target option length before offering. Common choices are 3, 5, 7, or 10+ days. Consider travel and specialty inspections.
- Budget for the option fee and inspection costs. Higher option fees can make offers stronger in competitive situations.
- Immediately after acceptance:
- Pay the option fee as the contract directs.
- Schedule the general inspection and high-priority specialists.
- Line up contractor visits if major repairs are likely.
- Before the option deadline:
- Review reports with your agent and any engineers or contractors.
- Decide whether to proceed, request repairs or credits, or terminate.
- If terminating, deliver written notice as required before the deadline.
- Track lender and appraisal timelines separately. Do not rely on appraisal as your only protection.
- Keep all documents: reports, bids, and notices.
Working with a local advisor
Your agent does more than write the offer. A strong Southlake buyer’s agent will coordinate inspector access, prioritize evaluations, and connect you with engineers and contractors who understand North Texas soil and luxury systems. They will also manage deadlines, prepare repair requests or termination notices, and advise you on what is typical in different Southlake neighborhoods and price points.
If you need a longer option period because you are relocating or the property is complex, your agent can frame that request and balance it with a competitive option fee. That clarity helps sellers feel confident saying yes while protecting your interests.
Ready to buy in Southlake with confidence? Reach out to Denise McCormick (TX) for concierge-level guidance, vetted vendors, and a negotiation plan that fits your timelines.
FAQs
What is the Texas option period in a home purchase?
- It is a negotiated number of calendar days in your contract when you can terminate for any reason by giving written notice on time, typically keeping your earnest money but not your option fee.
How much are option fees in Southlake luxury deals?
- Amounts vary, but buyers often offer $500 to $2,500 or more in competitive or complex properties; the exact number is negotiable based on price point and demand.
How long should my option period be in Southlake?
- Standard homes often use 3 to 10 days; luxury or complex properties commonly need 7 to 14 days to complete specialty inspections and collect contractor bids.
Which inspections should I prioritize during the option period?
- Start with a general home inspection, then focus on foundation/structural, roof, pool and spa, wood-destroying insects, sewer scope, and any specialty systems present.
Can I get my option fee back if I close on the home?
- Often the contract credits the option fee back to you at closing, but if you terminate during the option period it is typically nonrefundable; review your contract’s exact language.
What happens if I miss the option deadline?
- You lose the unconditional right to terminate under the option clause; other contingencies like financing or appraisal may still apply, but your risk increases if deadlines are missed.
Is waiving the option period a good idea to win a bidding war?
- It can make your offer more competitive, but it increases risk because you give up an easy exit if inspections uncover major issues; consider a shorter option instead and preload your inspections.
