Buying in Southlake and hearing about the “option period” for the first time? You are not alone. This short window can be the difference between a confident purchase and a stressful surprise. In this guide, you will learn exactly how Texas option periods work, what timelines and fees are typical in Southlake, how to plan inspections, and how to negotiate smartly in a competitive market. Let’s dive in.
What the Texas option period is
In Texas, the option period is a negotiated time after a seller accepts your offer when you can terminate the contract for any reason. You pay a separate option fee to secure this right. If you decide to end the contract within the option period and follow the notice rules in your contract, your earnest money is typically refundable.
The option period and fee are documented in the standard TREC One to Four Family Residential Contract (Resale). You will also review the Seller’s Disclosure Notice during this time, along with any other property disclosures. Keep in mind that the option period is not a financing contingency. Financing and appraisal items follow their own timelines in the contract and with your lender.
Typical timelines and fees in Southlake
Option periods are negotiated. Statewide, common lengths include 3, 5, or 7 days. In hotter segments of the market, buyers often shorten to 1 to 3 days to strengthen their offer. In some cases, buyers waive the option period, but that carries higher risk.
Option fees vary by market and price point. In many balanced situations, fees range from about $100 to $500. In high-demand or higher-priced areas, buyers sometimes offer higher option fees to stand out. Southlake’s higher price points and lower inventory often mean sellers favor shorter option periods or higher fees. If you want a longer inspection window, you may need to pair it with other strong terms like a higher price, larger earnest money, or a faster close.
How to use your option window
Before you make an offer
- Align with your agent on the shortest option period and highest option fee you are comfortable offering based on current Southlake conditions.
- Line up a licensed general home inspector and specialist inspectors who can work on short notice. Think foundation or structural engineer, roof, pool, HVAC, and a termite or WDI inspector.
- Ask for the Seller’s Disclosure, HOA documents, a recent survey if available, and basic utility information so your review can start fast after acceptance.
Right after acceptance
- Confirm the exact option deadline in writing and on your calendar, including time of day. Contracts may list a specific date and time, often midnight of the stated date. Verify what applies in your contract.
- Schedule the general inspection within 24 to 48 hours. For a 1 to 2 day option period, aim for same-day or next-day scheduling.
- Order specialists as needed: foundation or structural review, roof evaluation, pool and equipment check, HVAC, electrical, plumbing, chimney, and WDI. Radon is a lower priority in most of Texas but can be ordered if desired.
- Request HOA resale documents immediately to check assessments, rules that affect use, transfer fees, and any pending special assessments.
- Review the Seller’s Disclosure and any property-specific disclosures, such as lead-based paint for older homes.
After inspections and before the deadline
- Organize findings by priority: safety items, major structural or roof issues, systems failures, immediate repairs, and cosmetic items.
- Seek repair cost estimates for significant items. In North Texas, foundation work can be costly, so ask for professional evaluations if movement or cracks are noted.
- Decide whether to proceed, negotiate repairs or credits, or terminate. If you plan to negotiate, use the standard amendment or repair addendum and deliver it before the deadline.
- If you choose to terminate, deliver a written Notice of Termination according to the contract and keep proof of delivery.
After the option period ends
- If you did not terminate, the contract continues. You generally cannot back out later without risking earnest money unless another contract contingency applies.
- If the seller agrees to repairs or credits, document all terms in a signed amendment. Clarify scope, contractor responsibilities, permits if required, and timelines.
Inspection priorities in Southlake
- General home inspection: A licensed generalist provides a full-scope review of systems, roof, attic, visible structure, plumbing, electrical, and HVAC.
- Foundation or structural review: North Texas expansive clay soils can affect slab foundations, making structural assessments a high priority.
- Roof inspection: Evaluate age, condition, and remaining life. Roof replacements can be a large expense.
- Pool and spa: Many Southlake homes include pools. Schedule a specialist to inspect the shell, plaster, equipment, and safety features.
- Termite and WDI: Common in Texas and often required by lenders.
- HVAC and mechanical specialists: Helpful for older or high-end systems where performance and replacement costs matter.
- Electrical and plumbing specialists: Bring them in if your general inspector flags concerns.
- Survey and flood check: Confirm lot boundaries and whether the property sits in a mapped flood zone, which can affect insurance requirements.
- HOA review: Southlake neighborhoods often have HOAs. Review resale certificates for assessments, rules that affect use, and transfer fees.
Negotiation tactics in competitive offers
- Shorten the option period rather than waiving it. A 1 to 3 day period preserves your inspection right but requires fast scheduling and decision-making.
- Offer a higher option fee to sweeten your offer while keeping your right to terminate within the option window.
- Increase earnest money or offer a stronger price if you need a bit more time for inspections.
- If permitted, consider a pre-offer inspection or ask for seller pre-inspections. This can reduce surprises later.
- If you must limit the scope of your inspection requests, do so carefully with help from your agent or attorney. Limiting rights can raise risk and must be drafted clearly.
Sellers often push for shorter option periods, larger option fees, or a complete waiver in competitive settings. Waiving the option period is risky, especially for first-time buyers. If significant issues surface later, you may have limited remedies and could risk your earnest money. Most buyers are better served by a very short option period paired with strong scheduling and preparation.
Timing and documentation tips
- Deliver notices according to your contract’s notice provisions. Use the listed delivery methods and addresses. Save proof like email receipts or screenshots.
- Confirm how and when your option fee and earnest money are handled with the escrow or title company. Follow the contract instructions precisely.
- Verify how the contract counts days and what time the deadline ends. If your expiration falls on a weekend or holiday, do not assume it moves. Rely on the contract language.
- Coordinate inspections with your lender timeline. Appraisal and underwriting proceed on separate tracks, so move quickly to keep your closing on schedule.
Quick checklist for Southlake buyers
- Before the offer: Line up inspectors, request disclosures and HOA docs, choose your shortest acceptable option period and maximum option fee.
- After acceptance: Confirm the deadline and time, schedule the general inspection within 24 to 48 hours, order specialists, and request HOA resale documents.
- Before the deadline: Get repair estimates, submit repair requests or amendments in writing, or deliver a Notice of Termination with proof of delivery.
- After the option: If you proceed, capture agreed repairs in a signed amendment and track completion. If you terminate, confirm earnest money return with escrow.
Common mistakes to avoid
- Waiting to schedule inspections and missing your window to negotiate.
- Treating cosmetic items like deal breakers in a multiple-offer setting where sellers have leverage.
- Skimming HOA resale documents rather than reviewing assessments, rules that affect use, and any special assessments.
- Assuming the deadline moves if it lands on a weekend or holiday. Confirm contract language.
- Forgetting to keep written proof of delivery for notices and amendments.
The bottom line for Southlake
In Southlake’s higher-priced, low-inventory environment, the option period is both a safety net and a key negotiation lever. Plan your inspectors in advance, move quickly once under contract, and decide with data from your reports. Shorter option periods or higher option fees can help your offer stand out, but you should balance competitiveness with risk.
If you want a team that pairs white-glove service with fast execution, connect with the local experts at K2 Omni Group. We will help you structure the right option strategy, schedule inspections immediately, and negotiate with clarity so you can move forward with confidence.
FAQs
What is the Texas option period in home buying?
- It is a negotiated window after contract acceptance when you can terminate for any reason by paying an option fee, typically with your earnest money refundable if you follow notice rules.
How long is a typical option period in Southlake?
- Common lengths statewide are 3, 5, or 7 days, but in competitive Southlake segments buyers often shorten to 1 to 3 days to strengthen their offer.
Is the option fee refundable or applied at closing?
- The option fee is generally nonrefundable, although some sellers agree to credit it at closing if stated in the contract.
Can I get my earnest money back if I terminate in time?
- Yes, under the standard Texas contract, if you terminate within the option period and follow the contract’s notice requirements, earnest money is typically refundable.
What happens if I miss the option deadline?
- You may lose the unconditional right to terminate under the option, which can put your earnest money at risk. Always deliver notices early and keep proof of delivery.
Should I ever waive the option period in Southlake?
- Waiving can make an offer stronger but is risky. Most buyers are better off offering a short option period paired with rapid inspections and a prepared negotiation plan.
