Buying a home in Houston comes with a key safety net you should understand before you write an offer: the option period. If you have questions about how long it lasts, what it costs, or how it protects your earnest money, you are not alone. In this guide, you will learn how the option period works in Texas, what to expect in Harris County practice, and how to use it to make confident decisions. Let’s dive in.

What is the option period?

The option period is a short, negotiated window you pay for that lets you terminate the contract for any reason. If you end the contract properly within this timeframe, your earnest money is usually returned under the contract’s terms. This is your due diligence period to inspect the home and decide whether to move forward.

The option period is created in the standard Texas residential contract, often the TREC One to Four Family Residential Contract. It only exists if both parties agree to it and fill in the right sections.

Option fee vs. earnest money

• Option fee: A separate, typically nonrefundable payment you make to buy the unrestricted right to terminate during the option period. It usually goes to the seller, often held by the title company for the seller.
• Earnest money: A larger deposit that shows good faith. If you terminate within the option period and follow the contract’s notice rules, your earnest money is typically returned to you.

How it works in Houston contracts

Your contract will set the number of option days, the option fee, who holds the funds, and how notices must be delivered. To terminate, you must send written notice before the option period expires and deliver it as the contract requires, often to the seller or the title company, with a copy to the seller’s agent. The option period does not change other deadlines like financing or appraisal unless a separate addendum does so.

Typical lengths and fees in Houston

In Harris County and Greater Houston, common option periods range from 3 to 10 days. Seven days is frequently used. In hotter markets, buyers sometimes offer 0 to 3 days. Option fees often fall between about 100 and 500 dollars. In competitive situations, buyers may offer more, such as 1,000 dollars or higher, to stand out. All of this is negotiable.

Counting days and deadlines

Option days are usually measured in calendar days. Contracts often include a specific cutoff time on the final day. If the last day falls on a weekend or holiday, the contract language may shift the deadline. Always check your specific contract and record the exact deadline. The key is to deliver your termination notice in writing before the option period ends and keep proof of delivery.

What you can do during the option period

During the option period you can fully evaluate the property. Most buyers order inspections right away, then use the results to decide whether to move forward or negotiate.

Typical activities include:

• General home inspection and, if needed, HVAC, roof, pest, and sewer scope
• Radon or other specialty tests as appropriate
• Reviewing HOA documents, disclosures, surveys, and the title commitment
• Requesting repairs, credits, or price adjustments

What it does not cover

The option fee is paid to compensate the seller for taking the home off the market, so it is typically nonrefundable if you terminate. The option period does not replace other contract contingencies tied to financing, appraisal, title, or HOA approvals. If you waive the option period or set it at zero days, you give up the unrestricted right to terminate for property condition reasons. Also, the seller is not required to agree to repair or credit requests.

Buyer strategies in Houston

Use the option period to make smart, timely decisions without unnecessary risk.

• Schedule core inspections on day 1 to maximize time for review.
• Consider a phased approach, starting with structure, roof, pest, and HVAC, then add specialty tests if those findings warrant it.
• In competitive situations, shorten the option period rather than waive it, or offer a higher option fee to strengthen your offer while keeping some protection.
• Keep a clear paper trail. Submit repair requests and any termination in writing before the deadline, and preserve delivery receipts.
• If you terminate, coordinate promptly with the title company so your earnest money is handled per the contract.

Seller strategies

As a seller, you can shape the terms to protect your timeline and certainty.

• Request a shorter option period or a higher option fee in multiple-offer scenarios.
• Understand that a larger option fee compensates you if the buyer terminates, while buyers who keep option periods may still ask for repairs.
• Ensure the title company has clear instructions on option fee and earnest money handling to avoid disputes.

Risks and tradeoffs

Shortening or waiving the option period can make your offer more competitive, but it raises the risk that you discover issues after your unrestricted termination window closes. A higher option fee can appeal to sellers, yet it may deter some buyers or increase your upfront risk if you do not proceed.

Buyer checklist for Houston

Follow this quick plan to stay on track:

• Confirm the option period length and fee in your signed contract.
• Deliver the option fee immediately per the contract’s instructions, often to the title company.
• Book the general inspection and key specialists on day 1.
• Review HOA docs, disclosures, survey, and the title commitment during the option window.
• If requesting repairs or credits, submit your written list before the deadline and negotiate in writing.
• If terminating, send written notice before the option period expires and confirm the title company’s receipt for earnest money release.
• Keep copies of all reports, notices, and communications.

After the option period ends

Once the option period expires, you lose the unrestricted right to terminate. You can still rely on other contract contingencies if they apply, such as financing, appraisal, or title, but those have separate rules and timelines. Aim to finish inspections and any repair negotiations with enough time to make a clear decision before the deadline.

Local notes for Greater Houston

Market conditions shift in Houston. In stronger seller markets, buyers often shorten or even waive option periods. In more balanced periods, 7 to 10 days and typical fees are common. Local title companies routinely handle both earnest money and option fees, so verify their procedures early. Current Houston market trends also influence how aggressive you need to be with option terms when competing for a home.

Work with a trusted local guide

Your option period should reduce stress, not add it. With clear timelines, strong inspection planning, and practical negotiation, you can protect your earnest money and move forward with confidence. If you want step‑by‑step help crafting the right option terms for your goals in Houston or the surrounding suburbs, connect with the Kristen Manz-Greater Houston Living Team for concierge-level guidance.

FAQs

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

• It is a negotiated, buyer‑paid window that lets you terminate the contract for any reason and typically receive your earnest money back if you give proper written notice before the deadline.

How much is the option fee in Harris County?

• Option fees often range from about 100 to 500 dollars, and in competitive cases can be higher, such as 1,000 dollars or more. The amount is negotiable.

How long does the option period usually last in Houston?

• Common ranges are 3 to 10 days, with 7 days used frequently. In hot markets, buyers sometimes offer 0 to 3 days to be more competitive.

Is the option fee refundable if I terminate?

• No. The option fee is generally nonrefundable to the seller. If you terminate within the option period per the contract, your earnest money is typically returned.

Can the option fee be credited at closing?

• Yes. If both parties agree and document it in the contract or an addendum, the option fee can be applied toward your purchase at closing.

How do I deliver a termination during the option period?

• Send written notice before the deadline using a delivery method allowed by your contract, often to the seller or the title company, and keep proof of delivery.

What if I miss the option period deadline?

• You may lose the unrestricted right to terminate. Your options then depend on other contract contingencies and negotiation, so contact your agent right away.