Buying a home in Houston is exciting, but the option period can feel confusing if you are new to Texas contracts. You want time to inspect, review documents, and make a confident decision without risking your earnest money. This guide breaks down how the option period works in Greater Houston, what to tackle first, and how to use it to negotiate. Let’s dive in.
What is the option period
The option period is a negotiated window in the Texas purchase contract that gives you the right to terminate for any reason within a set number of days. You pay a separate, usually nonrefundable option fee for that right. The details come from the standard statewide contracts provided by the Texas Real Estate Commission (TREC) forms, not from state statute.
Two payments are common in Texas. The option fee goes to the seller as defined in the contract and secures your right to terminate during the option period. Earnest money is a separate deposit held in escrow with the title company to show good faith. If you terminate on time under the option, you typically lose the option fee, but you usually recover your earnest money, subject to the contract terms.
For general guidance on consumer topics like the option period and inspections, you can review resources from Texas REALTORS.
How it works in Houston
The length of the option period is negotiated and written into the contract. In practice, you will see anything from a few days to about two weeks. The deadline is firm. To terminate, you must deliver written notice as the contract instructs by the exact deadline.
The option fee is also negotiated. In many Texas markets, it ranges from about one hundred dollars to several hundred dollars. Depending on the contract, this fee may be credited to you at closing if you proceed.
Houston’s market can move fast. In multiple-offer situations, some sellers push for short option periods, like 1 to 3 days. If you are buying an older home or you are out of state, you might negotiate for 7 to 14 days to allow for specialized inspections. Flood risk and insurance availability in Harris County are key, so factor those checks into your timeline early.
For local market context and norms, check resources from the Houston Association of REALTORS.
What to do first
Use your option days wisely. Start strong in the first 48 to 72 hours.
- Schedule a general home inspection immediately.
- Pay the option fee as the contract requires and confirm receipt.
- Request seller disclosures, prior insurance claim info, survey, and any HOA documents.
If the general inspection reveals concerns, line up specialists quickly so you have time to negotiate or terminate before the deadline. The National Association of REALTORS inspection basics outline what a general inspection covers.
Houston-specific inspections
- Roof evaluation for age and storm wear.
- Foundation review, especially for slab-on-grade homes.
- Termite and wood-destroying insect inspection.
- Sewer scope for older lines or suspected issues.
- HVAC assessment, since Houston’s climate is demanding on systems.
- Mold or moisture checks if you see stains, odors, or prior water events.
- Pool inspection if applicable.
Houston flood due diligence
Flood risk affects cost, safety, and insurance. Do this early in the option period:
- Check official maps on the FEMA Map Service Center to see if the home is in a Special Flood Hazard Area.
- Review local studies and tools from the Harris County Flood Control District for added context.
- Ask for any elevation certificate and seller flood disclosures if available.
- Get flood insurance quotes to understand premiums and requirements.
Title, HOA, and insurance
Read your preliminary title commitment and survey for easements and encroachments. If there is an HOA, review covenants, bylaws, fees, and the resale certificate for any upcoming assessments.
Contact your insurance agent early to confirm availability and likely premiums for homeowners, wind, and flood coverage. The Texas Department of Insurance offers consumer information about these policies.
Coordinate with your lender on appraisal timing. Appraisal results may arrive after the option period, and your termination rights at that point depend on your financing contingency.
Negotiation strategies
Use inspection results to request repairs, a price reduction, or a closing credit. Focus on high-impact items like foundation, roof, HVAC, sewer, or electrical hazards. Cosmetic items are often better handled after closing.
If you need more time for specialty inspections, ask for a longer option period and offer a reasonable option fee to balance the request. In a hot market, a shorter option period might help your offer stand out, but it increases your risk.
If a seller will not grant a meaningful option period, you can still inspect, but you may lose leverage to terminate later and keep earnest money unless another contingency applies. Be sure all amendments and repair requests are in writing using the proper TREC forms.
Buyer checklist
Immediate (Day 0–2)
- Pay the option fee and confirm receipt per contract.
- Book a general home inspection within 48 hours.
- Gather disclosures, insurance claim history if available, survey, and HOA packet.
Early (Day 1–4)
- Order specialty inspections based on findings and property type.
- Price homeowners and flood insurance; confirm coverage availability.
- Check flood maps via FEMA and Harris County resources.
Mid (Day 3–7 or per your timeline)
- Review reports and decide to negotiate or terminate.
- If negotiating, submit a clear written request and set response timelines.
Final steps (before the deadline)
- If terminating, deliver written notice exactly as the contract instructs and keep proof of delivery.
- If proceeding, confirm repair scope, credits, and any warranties in writing.
Final thoughts
The option period is your time to verify the home’s condition, confirm insurance and flood risk, and align the deal with your goals. Stay on schedule, keep everything in writing, and use your findings to negotiate smartly. Your agent coordinates inspections, documents, and deadlines, and a real estate attorney can help with legal questions about the contract.
Ready to navigate your option period with confidence in Houston? Contact Anisa Hoxha Realty Group to plan your inspections, protect your timelines, and negotiate for the best outcome.
FAQs
What is the Texas option period in a home purchase?
- It is a negotiated window in the TREC contract that lets you terminate for any reason within the deadline in exchange for a separate option fee.
How much is a typical option fee in Houston?
- It is negotiated, and in Texas markets it commonly ranges from about one hundred dollars to several hundred dollars, subject to the contract.
Do you get earnest money back if you terminate on time?
- If you deliver written termination before the option deadline, you typically forfeit the option fee but recover earnest money according to the contract.
Should you waive the option period to win a bid?
- You can, but it increases risk since you lose the unilateral right to walk away after inspections; consider a shorter period instead of waiving.
What flood checks should Houston buyers do during the option period?
- Review FEMA and Harris County flood maps, request an elevation certificate if available, and get flood insurance quotes early to understand cost and requirements.
