Thinking about making an offer on a Richardson home but worried about what you might find after you sign? You are not alone. The Texas option period gives you a short window to inspect the property and decide if you want to move forward without pressure. In this guide, you will learn what the option period is, how it works in Richardson, what to inspect, and how to negotiate with confidence. Let’s dive in.
What the option period means in Texas
The option period is a negotiated time in the Texas One to Four Family Residential Contract (Resale) that gives you an unrestricted right to terminate. You can cancel for any reason during this window as long as you deliver written notice before the deadline. Buyers use this time to complete inspections and decide whether to proceed.
The option right is separate from financing, appraisal, or other contingencies. If you terminate during the option period, the contract ends under the option terms. The handling of earnest money and the option fee follows the contract language you signed.
Option fee vs. earnest money
- Option fee: A separate, typically nonrefundable payment that buys your unrestricted right to terminate during the option period. In some contracts, it may be credited to you at closing if you proceed, but only if your contract says so.
- Earnest money: A good‑faith deposit that is usually refundable only if you end the contract under a valid contingency or as allowed by the contract.
Treat these as two different payments with different rules. Read your contract closely to confirm amounts, due dates, who holds the funds, and whether any credit applies at closing.
When the clock starts and key deadlines
The option period starts on the contract’s effective date. That is the date all parties have signed and the contract becomes binding. From that moment, your time to inspect and make decisions begins.
Most contracts require you to pay the option fee within a short window, often within 1 to 3 days after the effective date. Your contract also sets how and to whom the fee must be delivered. If you plan to terminate, you must deliver written notice within the option period using the delivery methods in your contract.
Example timeline (illustrative)
- Day 0: Contract becomes effective; option period begins.
- Day 1: Pay the option fee per the contract.
- Days 1–3: Schedule and complete your general inspection, then any priority specialty inspections.
- Before the option deadline: Send written termination or finalize repair or credit requests. If you do not terminate in time, your unrestricted right ends.
Inspections to prioritize in Richardson
Start with a general home inspection
Book a licensed general home inspector as soon as the contract is effective. The inspector will review visible systems and structure and flag items that need further evaluation. Most general inspections take 2 to 4 hours, depending on the home.
Add targeted specialty checks
Based on age, condition, and location, consider:
- Roof evaluation
- HVAC specialist review
- Plumbing and electrical checks
- Termite or wood‑destroying insect inspection
- Sewer scope, especially for older lines
- Pool or spa inspection, if present
- Structural engineer consult if the general inspector flags concerns
Credentials matter. State licensing is required where applicable, and certifications from respected inspection organizations are a plus.
Scheduling tips that save time
- Book immediately after the contract goes effective. Good inspectors fill up quickly.
- Coordinate specialty inspections to happen the same day as the general inspection when possible.
- Ask for verbal highlights on site so you can make quick decisions while waiting for the full report.
What inspections may cost
Costs vary by provider and home size, but you can expect:
- General inspection: commonly several hundred dollars
- Sewer scope: often a few hundred dollars
- Termite/WDI: often under a few hundred dollars
- Specialty inspections: variable and can be several hundred each
Use these as rough ranges. Get quotes upfront and book early so you have results before the option window closes.
Strategy during your option period
You have two main decision points: what to request during the option period and whether to proceed after the option ends.
- Request repairs or a credit: Use documented inspection findings and cost estimates. Keep requests clear, focused on safety, system function, and significant defects.
- Credit vs. seller repair: Sellers often prefer a credit at closing for predictable items. For structural or safety issues, you may prefer repairs before closing or choose to walk away.
- Short option with a higher fee: In competitive situations, some buyers offer a shorter option period paired with a higher option fee to strengthen the offer while keeping a brief inspection window.
- Extension requests: If you need more time, you can ask the seller to extend the option period. Expect to offer a fee or other consideration. Put any extension in writing and have all parties sign.
- Waiving the option period: Some buyers consider waiving it to compete. This increases risk because your ability to exit later is limited. Only consider a waiver if you have done careful pre‑offer diligence and are comfortable with the risk.
Risks and how to protect yourself
- Money at stake: If you terminate under the option, the seller typically keeps the option fee unless your contract says otherwise. After the option period, your earnest money can be at risk if you try to terminate without a valid contingency.
- Time pressure: Short option windows can lead to missed inspections. Prioritize the highest‑impact checks first.
- Documentation: Send all notices in writing using the contract’s delivery methods. Keep inspection reports, photos, estimates, and email records. Use the correct promulgated forms for amendments and repair agreements.
- When to involve an attorney: If there is a dispute about notice timing or delivery, complex structural or legal issues, or unusual contract language, involve a real estate attorney.
Local notes for Richardson buyers
Richardson sits near major employers and the Telecom Corridor, with easy access to UT Dallas and key commuter routes. These factors can affect how competitive a specific neighborhood or price point feels from week to week. Check current days on market and inventory with your agent before you decide on option length or fee size.
Some loan programs, including certain VA loans, may require a termite or WDI report. Coordinate with your lender early so required inspections fit inside your option period.
Your option‑period checklist
Right after the contract is effective
- Confirm option period length and the exact deadline in your contract.
- Pay the option fee on time and verify who is holding it.
- Book a licensed general home inspection within 24 hours.
- Line up specialty inspections based on age and condition.
During the option window
- Attend the inspection if possible and ask about safety or major issues.
- Order repair estimates for key items you might negotiate.
- Decide whether to request repairs, request a credit, accept the home as‑is, or terminate.
- If you terminate, send written notice before the deadline using the contract‑approved delivery method.
If you choose to negotiate and proceed
- Send a concise repair or credit request with supporting report excerpts.
- If the seller agrees to repairs, document scope, contractor standards, and timelines in a signed amendment.
- If the seller offers a credit, confirm it in writing and ensure it appears on your closing statement.
Wrapping up
The option period is your safety net. With the right plan, you can move quickly on inspections, make smart repair or credit requests, and keep your goals front and center. When you have a clear timeline and strong documentation, you protect your money and your peace of mind.
If you want a local advocate who understands construction details, valuation, and how to negotiate cleanly in Richardson, reach out to Jessica Cazares. Our team will help you use the option period to your advantage and keep your purchase on track.
FAQs
When does the Texas option period start and end?
- It starts on the contract’s effective date and ends at the exact deadline stated in your contract; your written termination must be delivered before that deadline.
How long should my option period be in Richardson right now?
- Option length is negotiated and often ranges from about 3 to 10 days; check current local competitiveness with your agent before deciding.
How much is the option fee and who gets it?
- The contract sets the amount and who receives it; it is a separate, typically nonrefundable fee that may be credited at closing only if the contract says so.
What inspections should I order during the option period?
- Start with a general home inspection, then add priority checks like roof, HVAC, plumbing, electrical, termite/WDI, and a sewer scope for older lines.
What should I do if I find problems during inspections?
- Use documented findings to request focused repairs or a credit, or terminate before the deadline if you cannot reach an agreement.
What happens if I miss the option deadline?
- Your unrestricted right to terminate ends, and attempting to cancel later without a valid contingency can put your earnest money at risk.
Can I extend the option period if I need more time?
- You can request an extension, but the seller must agree; any extension should be in writing and signed by all parties.
Is it risky to waive the option period to win a bid?
- Yes; waiving increases risk because you lose the built‑in exit window if inspections reveal major issues later.
