Buying in Dallas and hearing agents talk about the “option period”? This short window can be your best protection as a buyer, especially if you are new to Texas contracts. You want enough time to inspect, evaluate, and negotiate without risking your earnest money. In this guide, you’ll learn how the option period works in Texas, what it costs, how to use it in a competitive Dallas market, and how to keep your purchase on track. Let’s dive in.

What the option period is

The option period is a negotiated time after a contract is signed when you can terminate the purchase for any reason. If you follow the contract rules and terminate during this window, you typically get your earnest money back. The seller usually keeps the separate option fee.

Most resale contracts use Texas Real Estate Commission forms that allow you to negotiate an option period and an option fee. The option right only exists if the option fee is paid the way the contract requires and within the stated deadline. The contract also defines when the option begins and ends and how notices must be delivered.

The option period is different from financing or appraisal terms and from required disclosures. Seller property disclosures and federal disclosures still apply. The option is your buyer protection window regardless of what those disclosures say.

Timeline and fees in Dallas offers

Typical durations

Option periods are commonly a few days to about a week. In balanced markets, 5 to 10 days is common. In hotter seller markets, many buyers offer 3 days or even waive the option to compete.

Contracts typically count calendar days unless stated otherwise. Confirm how your contract measures time and always verify the effective date so you know your exact deadline.

Option fee vs. earnest money

The option fee is a negotiated payment to the seller for the right to terminate during the option period. It is usually modest, often in the low hundreds, but can be higher or lower based on market conditions. The fee is normally non-refundable if you terminate, though the contract may allow it to be credited to you at closing.

Earnest money is separate and is held by the title company or escrow agent. If you properly terminate within the option period, you generally receive the earnest money back. If the option fee is not delivered as required, the option protection may not be created, so timely delivery matters.

Start date and how to terminate

The option period is measured from the effective date, which is usually the date the last party signs. To terminate, you must deliver the required notice within the option window and use the delivery methods listed in the contract. If you miss the deadline, your unconditional right to a refund of earnest money may end and your remedies change.

Inspections to schedule in Dallas

What to prioritize

The option period is your time to inspect, gather reports, and decide whether to move forward. Common inspections include a general home inspection plus specific evaluations for the roof, HVAC, plumbing, and electrical systems. In Dallas, buyers often add a sewer scope and a foundation or structural inspection, especially in neighborhoods with older homes. Other specialty checks may include termite, chimney, pool, and environmental testing when appropriate.

Typical inspection costs

Buyers usually pay for inspections during the option period. Approximate ranges vary by vendor and home size. A general inspection often runs about $300 to $600. A sewer scope may be about $150 to $400. Structural or engineering evaluations can range from several hundred to over $1,000 depending on scope.

Scheduling tips

Book your general inspection immediately on Day 1. Popular inspectors can fill up fast. Specialty inspections like sewer scopes or structural engineers can take several days to schedule, so plan ahead. Keep written reports and estimates. Base any repair requests on documented findings and submit them using the contract’s requirements.

Negotiation strategies in a competitive Dallas market

Stay competitive while protected

• Shorter option period: Offer 2 to 3 days instead of a week to limit the seller’s exposure but keep essential inspection time.
• Higher option fee: Offer a larger non-refundable fee to strengthen your offer while keeping inspection rights.
• Split strategy: Pair a short option period with pre-offer or early-access inspections for key items like sewer and foundation if the seller agrees.
• Pre-offer due diligence: Where possible, complete a pre-offer inspection to make your offer cleaner and faster after acceptance.
• Conditional waivers: Some buyers partially waive the option while preserving protection for major structural or health-and-safety defects. These are contractual tradeoffs, so consult an attorney for legal advice.

Risks of waiving or shortening

Waiving the option removes your unconditional right to exit for any reason during that window. While other contract terms may still apply, your remedies are more limited for issues found later. Very short option periods can also rush inspections and lead to missed problems, which can be costly in Dallas where foundation and drainage issues are common in some areas.

7-day option period checklist

• Day 0 (effective date): Confirm the effective date in writing. Deliver option fee and earnest money as the contract requires.
• Day 1: Complete the general inspection. Schedule sewer scope and foundation/structural evaluation if indicated.
• Days 2–4: Review inspection reports. Order repair estimates for significant items.
• Days 4–6: Decide on repair requests, credits, or termination. Prepare written requests or notices per the contract.
• Day 7 (deadline): Deliver termination notice or repair proposals within the option period if needed. Confirm receipt using the delivery methods in the contract.

Local Dallas notes for East Dallas buyers

Some East Dallas neighborhoods include older homes where foundation, drainage, or sewer line concerns may be more likely. Prioritize inspections that address these systems if signs point to issues. Vendors can book up quickly, so early scheduling is essential. Title company practices can influence earnest money timing and survey review schedules, so coordinate closely with your agent and the title company.

Common outcomes during the option

• You accept the home as-is and move forward.
• You and the seller agree on repairs or a credit toward closing costs.
• You terminate within the option window. The seller keeps the option fee, and you typically receive your earnest money back if you followed the contract.

How your agent helps

Your agent’s role is to make the process clear and calm from start to finish. That includes setting an option strategy before you offer, coordinating vetted inspectors, confirming delivery of option and earnest funds, managing deadlines, and aligning inspection findings with negotiation goals. For legal interpretation or complex contract changes, your agent can help you consult an attorney.

If you want a structured plan that protects you without weakening your position, reach out to Katherine. With a vetted vendor network, proven negotiation strategies, and end-to-end transaction management, you can move forward with confidence. Connect with Katherine Roberts to request an appointment.

FAQs

What is the Texas option period in a Dallas home purchase?

• It is a negotiated window after contract signing that lets you terminate for any reason, typically getting earnest money back if you follow contract rules. The seller usually keeps the separate option fee.

How much is the option fee in Texas real estate deals?

• It is negotiated and often in the low hundreds, but it can be higher or lower based on market conditions. It is usually non-refundable and may be credited at closing per the contract.

Are option period days in Texas calendar days or business days?

• Contracts often use calendar days unless they say otherwise. Verify the exact timing and the effective date in your signed contract.

Who pays for home inspections during the Texas option period?

• Buyers typically pay for inspections and any specialty reports during the option period.

How do I terminate a Texas contract during the option period?

• Deliver the required termination notice within the option deadline using the delivery method listed in your contract. If you miss the deadline, your unconditional right to a refund of earnest money may end.

Should I waive the option period to win a Dallas bidding war?

• Waiving can strengthen an offer but raises risk for undiscovered defects. Consider a short option period or a higher option fee as alternatives and consult an attorney before limiting protections.