Buying a home in Bexar County and keep hearing about the “option period”? You’re not alone. This short window can protect your earnest money and give you time to inspect the home without committing to close. In this guide, you’ll learn how the option period works in Texas, what it costs, how to use it for inspections and negotiations, and what to watch for in the San Antonio market. Let’s dive in.
What the option period means
An option period is a negotiated timeframe after the contract is signed when you can terminate the purchase for any reason. You pay an option fee for this unrestricted right. If you cancel within the option period, you typically get your earnest money refunded according to the contract.
This period exists to help you complete inspections and due diligence. If serious issues show up, you can exit and keep your earnest money. Details like exact dates, fees, and how to give notice are set in your contract.
What it is not
The option period is not required by law. It is negotiated between buyer and seller and can be shortened, extended, or declined depending on market conditions. It also does not replace other contract protections like financing contingencies.
How it works in Texas and Bexar County
Texas uses standard contract forms that include an option period provision. Local boards and title companies follow the contract language for deposits, notices, and handling funds.
There is no special county rule that changes the option period in Bexar County. Market conditions influence whether you can negotiate longer timelines. In hotter conditions, sellers often push for shorter or no option period.
Who handles the money
Your contract will specify who receives the option fee. It may be paid to the seller or to the title company. Earnest money is placed in escrow, usually with the title company. Both are typically due shortly after the contract is executed, so plan to deliver promptly.
Dates and notices to track
- Confirm the exact start and end of your option period.
- Note how you must deliver a termination notice if you decide to cancel.
- Track deposit deadlines for earnest money and the option fee.
- Coordinate inspection timing with any lender or appraisal deadlines.
Option fee vs. earnest money
Option fee (option money)
- Purpose: Pays for your unrestricted right to terminate during the option period.
- Typical amount: Often $100 to several hundred dollars. Buyers sometimes offer more in competitive situations.
- Refundability: Generally non-refundable to you. Some contracts credit it to the purchase price at closing.
- Timing: Due as the contract states, often at or soon after execution.
Earnest money
- Purpose: Shows good faith and sits in escrow until closing or resolution.
- Typical amount: Market dependent. Often 1 to 2 percent of price, or a flat amount like $1,000 to $5,000, with higher deposits on higher-priced homes.
- Refundability: Refunded if you terminate within the option period or under other contract rights. After the option period, your rights are limited to what the contract allows.
- Timing: Delivered to escrow within the contract deadline.
Timelines you can expect
Here is a common sequence you can adapt to your contract dates:
- Day 0: Contract is fully executed by both parties.
- Days 0–1: Deliver earnest money and option fee as required.
- Days 1–3: Schedule general and specialist inspections immediately.
- Days 3–7: Receive inspection reports. Decide whether to proceed, request repairs or credits, or terminate.
- Before the option deadline: Send written notice per the contract if terminating. If requesting repairs or credits, submit a clear, timely proposal.
- After the option deadline: Your unrestricted right to terminate under the option typically ends.
- Ongoing: Complete financing and appraisal steps. Confirm any agreed repairs before closing.
Common local timeframes
- Option period length: Often 3 to 10 days. In moderate markets, 7 days is common. In competitive conditions, you may see 0 to 3 days or no option period.
- Inspection scheduling: Book within the first 48 to 72 hours to leave room for review and negotiation.
Inspections that matter in San Antonio
Plan your inspection mix based on the home’s age, features, and what your general inspector observes.
- General home inspection: Structure, roof, HVAC, electrical, plumbing, interior, and exterior.
- Wood-destroying insect (WDI) inspection: Termites are common in Texas; many buyers order this.
- Foundation or structural specialist: Especially if you see cracks, sloping floors, or doors that stick. Expansive clay soils in our area can stress foundations.
- Sewer scope: Useful on older homes or if backups are suspected.
- Roof, HVAC service checks, pool or spa inspections: Order as needed for the property.
Regional considerations in Bexar County
- Foundation movement: Expansive soils and seasonal shifts can lead to cracks or settlement. Follow up with a specialist if your inspector flags concerns.
- Termites/WDI: A WDI report is commonly recommended.
- Drainage and grading: Heavy South Texas storms can expose drainage issues. Review lot grading and water intrusion risks.
Typical inspection costs
- General home inspection: Often several hundred dollars, commonly in the $300 to $600+ range depending on size and age.
- WDI inspection: Often about $75 to $150.
- Sewer scope: Often about $150 to $300.
- Foundation evaluation: Costs vary and are typically higher than general inspections.
Book inspectors immediately after execution so you receive reports before the option deadline.
Negotiating during the option period
Use the option period to confirm the home’s condition and make focused, well-documented requests.
- If serious defects arise: Terminate within the deadline or request repairs or credits.
- Prioritize safety and major systems: Electrical hazards, structural issues, roof failures, and significant WDI findings often take precedence.
- Get bids: Contractor estimates help you request realistic repairs or credits.
- Be strategic: Sellers want certainty. A shorter option period and clear, reasonable requests can be persuasive.
- Decide quickly: If the seller declines, choose to accept, ask for a credit, or terminate before the option expires.
After the option period, other contract rights may remain, but you typically lose the unrestricted right to terminate.
Buyer checklist for Bexar County
- Confirm your option period’s start and end times and how to deliver termination.
- Deliver earnest money and option fee and get a receipt.
- Schedule the general inspection and WDI within 24 to 48 hours.
- Line up specialists early: foundation, sewer scope, roof, HVAC, pool if needed.
- Coordinate inspection findings with your lender’s timelines.
- If defects appear, get estimates and submit a clear repair or credit request before the deadline.
- Keep copies of all reports and written communications.
Avoid these common pitfalls
- Waiting to schedule inspections, then running out of time to evaluate or negotiate.
- Assuming weekends or holidays extend your deadline. Track the exact date and time listed in your contract.
- Sending an informal text instead of following the contract’s required written notice to terminate.
- Forgetting to confirm whether the option fee will be credited at closing.
- Making vague repair requests without estimates or clear scope.
Get local guidance that moves fast
You deserve a clear plan, tight timelines, and strong negotiation. Our San Antonio team pairs award-level production with a tech-forward process so you can book inspections quickly, keep every deadline, and negotiate from facts, not guesswork. If you’re buying in Bexar County, let us help you navigate the option period with confidence.
Have questions or want a step-by-step plan for your offer? Connect with Lisa Guzman for local guidance.
FAQs
In Texas, is the option period required?
- No. It is negotiated in the contract. Sellers can accept, shorten, or decline it.
Who keeps the option fee if I cancel during the option period?
- The option fee is usually non-refundable to you and paid to the seller, though some contracts credit it at closing. Earnest money is typically refunded if you terminate properly within the option window.
After the option deadline, can I still back out of a Bexar County purchase?
- Once the option expires, you usually lose the unrestricted right to terminate under that provision. Any remaining rights come from other contract terms or mutual agreement.
How do lenders view repairs found during inspections?
- Lenders focus on habitability and issues that affect value. Major structural, roof, or safety items can become loan conditions. Coordinate with your lender early.
Can shortening the option period make my offer stronger in San Antonio?
- Yes. Shorter or even waived option periods can be more competitive, but they reduce your time to inspect and decide. Balance strength with risk.
Where do I deliver the option fee and earnest money?
- Follow your contract. Earnest money is typically deposited with the title company. The option fee may go to the seller or title company as specified, and both should be delivered promptly.
