You want to move fast in Northwest Hills without stepping on a landmine. The option period in Texas is your short window to inspect, negotiate, or walk away while keeping your earnest money protected. In a neighborhood where condition varies and competition can spike, understanding this tool gives you speed and leverage. Below is a clear guide to what the option period is, local norms in 78731, and how to use it to win with confidence. Let’s dive in.
What the option period is
Plain-English definition
The option period is a negotiated, short timeframe that gives you the unconditional right to terminate the contract for any reason. If you deliver written notice within that window, your earnest money is returned per the contract. The seller keeps only the agreed option fee.
How it works in your contract
You and the seller agree to two numbers: the length of the option period and the option fee you pay to the seller. The option fee is typically due when the contract goes effective and is nonrefundable. If the option period expires, you lose the unconditional right to walk away based on inspections, though other contract provisions may still apply.
What it is not
The option period is separate from financing, appraisal, title, or HOA review items. Those have their own timelines and notices. Do not assume those are covered by your option unless the contract states it.
Northwest Hills norms to expect
Typical local ranges in 78731
- Option period length: 0 to 7 days on competitive homes. A 3 to 5 day window is a common middle ground. Older listings or those with known issues may see 7 to 10 days.
- Option fee: often $100 to $300 in slower conditions and up to $500 to $1,000 or more when sellers want stronger commitment.
- Earnest money: commonly 1 to 2 percent of price or a set amount such as $5,000 to $20,000, depending on price tier and competition.
How property type shifts leverage
Northwest Hills has a mix of older construction, remodels, and homes with significant lot value. Heavily updated homes with low days on market tend to demand shorter options and higher fees. Older homes or properties with expected repairs often allow for longer option periods.
Your fast decision framework
- Get a current market read. Ask your agent for days on market, list-to-sale trends, and the multiple-offer picture for the exact price band.
- Choose your protection level. Decide if you want a conservative, balanced, or competitive approach based on your risk tolerance and the home’s condition.
- Mobilize inspections immediately. Have inspectors queued before you write the offer so you can schedule the moment the contract is effective.
- Act before the deadline. Deliver repair requests, credits, or termination in writing before your option expires.
Inspection priorities in 78731
What to inspect first
- General home inspection by a licensed inspector.
- Foundation or structural review, especially for older slabs or signs of movement.
- WDI and termite inspection.
- Sewer scope for older lines that may be clay or in need of repair.
- Roof evaluation for condition and potential leaks.
- HVAC performance and age for both cooling and heating.
- Pool inspection if applicable.
- Floodplain and drainage review using relevant maps and on-site observations.
- HOA, deed restrictions, and covenants for dues, assessments, and use rules.
How to fit this into a short window
Start scheduling the day the contract is effective. Prioritize foundation and sewer early if the home is older. If timelines are tight, pay for expedited slots and digital reports so you can make decisions fast.
Offer profiles that win here
- Conservative offer, maximum protection: 7 to 10 day option, $200 to $300 option fee, earnest money near 1 percent, standard 30 to 45 day close.
- Balanced local offer: 3 to 5 day option, $300 to $500 option fee, 1 to 2 percent earnest money or $5,000 to $10,000, 30 to 45 day close.
- Strong competitive offer: 0 to 2 day option, $500 to $1,000 option fee, 2 percent or higher earnest money or a larger flat sum, faster close and a price strategy aligned with demand.
- Aggressive risk-tolerant offer: waive the option or use a minimal 24-hour option with a larger fee. Only choose this if you fully understand the inspection risk.
Tradeoffs to use to your advantage
- Option days vs. option fee: fewer days plus a larger fee signals strength.
- Earnest money size: a larger deposit shows commitment and can stand out in a crowded field.
- Price vs. concessions: if you need to shorten the option, you can offset with price or credits.
- Repair approach: instead of broad repair demands, use targeted credits or a pre-agreed repair cap to balance speed and protection.
- Closing timeline: faster or flexible closings can beat higher prices if the seller values certainty.
A 5-day option calendar
Effective date, Day 0
- Send the option fee and earnest money per the contract.
- Schedule general, foundation, sewer scope, WDI, roof, and HVAC. Request next-day slots.
- Request HOA or deed-restriction documents and confirm title work.
Days 1 to 3
- Complete inspections and review digital reports.
- Order quick bids for big-ticket items such as roof, foundation, and sewer.
- Align with your agent on what is material versus cosmetic.
Day 4
- Decide: request repairs or credits, proceed as is, or terminate.
- Draft the amendment or termination notice for timely delivery.
Day 5, deadline day
- Deliver signed amendments or the termination notice before the cut-off.
- If proceeding, lock next milestones with lender and title.
Quick checklist
- Have inspectors and a structural engineer on call before you offer.
- Prioritize foundation and sewer on older homes.
- Use a shorter option with a higher fee if competition is intense.
- Put repair requests in writing early. Convert to credits when that speeds agreement.
- Document all notices, dates, and receipts.
Common risks to consider
- Shortening or waiving the option removes your unconditional exit tied to inspections. If major defects appear after your option expires, you may be obligated to move forward based on the contract.
- Terminating during the option forfeits your option fee. Larger fees increase out-of-pocket risk even as they strengthen your offer.
- If market speed shifts, yesterday’s norms may not hold. Calibrate with real-time data before you submit.
Ready to move in Northwest Hills?
A smart option strategy lets you act decisively without taking on unnecessary risk. If you want a clear read on current 78731 norms, a rapid inspection plan, and tailored offer language that fits your goals, connect with Joe & Cara Keenan for a private, concierge consultation.
FAQs
What is the Texas option period in simple terms?
- It is a negotiated window that lets you terminate for any reason by written notice before the deadline, recover your earnest money, and forfeit only the option fee.
How long is a typical option period in 78731?
- In competitive situations, expect 0 to 7 days, with 3 to 5 days common. Older homes or slower markets may support 7 to 10 days.
How much should I expect to pay for the option fee?
- Often $100 to $300 in buyer-friendly conditions and up to $500 to $1,000 or more when sellers seek stronger commitment.
What is the difference between option fee and earnest money?
- The option fee is paid to the seller and is nonrefundable. Earnest money is held in escrow and is generally returned to you if you terminate within the option period per the contract.
Can I ask for repairs after inspections in the option period?
- Yes. The seller can accept, counter, or refuse. You may then proceed, negotiate further, or terminate before the deadline.
What happens if I waive the option and discover issues later?
- You lose the unconditional right to terminate for inspection reasons. Your remaining remedies depend on the contract and applicable law.
How large should earnest money be in Northwest Hills?
- A common range is 1 to 2 percent of the purchase price or a set figure such as $5,000 to $20,000, adjusted for price tier and competition.
