When you buy a home in Texas, the standard contract gives you a powerful tool: the option period. It's a short window, negotiated in your offer, when you can back out of the contract for any reason.

How it works

You pay the seller a small option fee for the right to terminate during the option period. The length of the period and the fee are both negotiable, and most buyers choose something in the range of 5 to 10 days. If you terminate within the option period, you typically get your earnest money back, but the seller keeps the option fee. In most cases the option fee is credited to you at closing if you buy the home.

What to do during the option period

This is when you schedule your home inspection and any specialized inspections, like a sewer scope, pool inspection, or foundation evaluation. It's also a good time to confirm insurance costs, review HOA documents, and double-check anything that matters to you, from commute times to school boundaries.

If the inspection turns something up

You have options. You can ask the seller to make repairs, request a price reduction or a credit toward closing costs, accept the home as-is, or walk away. A good agent will help you separate the deal-breakers from the normal wear and tear every home has, and negotiate accordingly.

One important warning

Deadlines in Texas contracts are strict. If you want to terminate, notice must be delivered on time. We track every date for you so nothing slips.

Have questions about buying in the Austin area? Let's talk.