You found the right Dallas home and your offer is accepted. Now the clock starts. The option period is your short window to investigate the property and decide if you want to move forward without risking your earnest money. In this guide, you’ll learn how the Texas option period works, common timelines and fees in Dallas, what to inspect first, and how to negotiate or terminate the contract the right way. Let’s dive in.
What the Texas option period is
The option period is a negotiated number of days after you go under contract when you can terminate for any reason. You pay the seller an option fee for this right. If you terminate properly during this period, you generally get your earnest money back per the contract while the seller keeps the option fee.
In Texas, the option period is created in your purchase contract (often the TREC One to Four Family Residential Contract). The contract sets the option days, the option fee amount, how to deliver the fee, and how to deliver termination notice. You can review TREC consumer resources and forms on the Texas Real Estate Commission website.
After the option period ends, your unrestricted right to terminate goes away. You can still end the contract if another contract right applies (for example, title issues, financing contingencies, or seller breach), but your earnest money could be at risk if you default. Texas REALTORS offers helpful guidance on option periods and best practices for buyers; see their resources at Texas REALTORS.
Typical Dallas timelines and fees
Local norms shift with the market, but many Dallas-area resale deals use:
- Option period length: commonly 3 to 10 calendar days. In hotter neighborhoods, buyers sometimes offer 0 to 3 days to be more competitive. In calmer markets, 5 to 10 days is common.
- Option fee: often 100 to 500 dollars, with many offers in the 100 to 250 dollar range. Higher fees can make your offer stand out.
- Earnest money: varies by price. For higher price points, 1 percent of the purchase price is a common approach. For lower price points, flat amounts (for example, 1,000 to several thousand dollars) are typical.
These are general practices. Confirm current norms with your agent and title company so your offer matches today’s market.
How to use your option period
Schedule inspections fast
Start inspections immediately after the contract is effective and you deposit earnest money. Aim to schedule within 24 to 48 hours to leave time for follow-up tests, specialist visits, and contractor bids before the deadline.
- Use licensed inspectors and ask for written reports.
- If a specialist is needed (for example, a structural engineer), book that visit right away.
Prioritize Dallas-specific inspections
Dallas homes often need a close look at key systems:
- General home inspection (structure, electrical, plumbing, roof, HVAC)
- Foundation evaluation or structural engineer review (soil movement and slab foundations are common concerns)
- Roof inspection (age and leaks)
- HVAC and mechanical systems
- Termite/wood-destroying insect inspection
- Sewer line scope (where applicable) or septic inspection
- Flood and drainage assessment (review maps and property history)
- Specialty inspections as indicated (mold, asbestos in older homes, pool/spa, chimney, lead paint in very old homes)
For flood context and insurance questions, use FEMA’s maps at the Flood Map Service Center.
Negotiate with a clear plan
Once you have inspection results, you typically choose one of these paths:
- Request seller repairs (with a detailed written scope via an amendment)
- Request a credit at closing for repair costs
- Request a price reduction or other seller concession
- Accept the property as-is and proceed
- Terminate within the option period
Sellers may agree, offer a credit, counter with a different remedy, or refuse. If the seller refuses and you continue, you proceed as-is except where the contract says otherwise.
Terminate correctly and on time
If you decide to walk away, follow the notice rules in your contract. Termination must be in writing and delivered to the right party before the deadline. Keep proof of delivery (for example, email time stamp or courier receipt). Option days are usually counted as calendar days starting from the effective date, but always confirm how your contract defines timing.
Protect your earnest money
Your contract should name the escrow holder (usually the title company) and set the deadlines for earnest money and the option fee. Protect yourself by:
- Delivering earnest money and the option fee by the contract deadlines
- Getting receipts and confirming deposit with the title company
- Keeping copies of checks, wire confirmations, and delivery proofs
- Delivering any termination notice before the option period ends, exactly as the contract requires
If a dispute arises about earnest money, the escrow holder will typically keep funds until both sides agree, or until mediation, arbitration, or a court order resolves it. Learn more about contracts and consumer protections at the Texas Real Estate Commission and buyer guidance from Texas REALTORS.
Dallas due diligence to prioritize
Foundations and soil
The Dallas area has varied soils and many slab-on-grade foundations. Movement can lead to differential settling. If your inspector sees signs of distress, get a foundation specialist or structural engineer to evaluate during the option period.
Flood and drainage
Certain areas of Dallas have floodplain exposure or localized drainage issues. Review FEMA maps at the Flood Map Service Center and request any flood history from the seller. Your lender or insurer may require flood insurance depending on location.
HOA documents
If the property is in an HOA, coordinate your HOA document review with your option period and any separate HOA-related deadlines in your contract. Review restrictions, budgets, and rules that could affect your plans.
Older homes and permits
Many Dallas neighborhoods include older homes. Check for unpermitted work or code issues that could impact renovations or future resale. Property records can provide helpful context through the Dallas Central Appraisal District.
Scheduling specialists
In busy seasons, structural engineers, roofers, and sewer scope vendors can book up quickly. Start calling as soon as your contract is effective so you do not run out of time.
Offer strategy in competitive areas
In multiple-offer situations, Dallas buyers sometimes shorten the option period (for example, 0 to 3 days) or increase the option fee to stand out. If you shorten your option period:
- Line up inspectors in advance so you can complete key inspections within the first 24 to 48 hours.
- Prioritize the highest-impact items first (foundation, roof, HVAC, and drainage).
- Keep your notice and amendment templates ready so you can deliver requests or termination on time.
You can also strengthen other terms (for example, earnest money or price) if you want to keep a standard-length option. Match your strategy to your risk tolerance and the property’s condition.
Buyer checklist
Use this quick checklist to stay on track.
- Before or at offer:
- Decide your option days and fee amount based on competitiveness.
- Confirm financing timelines with your lender.
- Immediately after contract acceptance:
- Deposit earnest money and the option fee on time; get receipts.
- Schedule general and specialty inspections within 24 to 48 hours.
- Order termite/WDI inspection and, if indicated, a foundation or structural review.
- Check FEMA flood maps and request seller flood disclosures.
- If in an HOA, request and review documents early.
- During the option period:
- Review reports quickly and request contractor bids as needed.
- Prepare written repair requests or a termination notice before the deadline.
- Deliver notices as the contract requires and keep proof.
- After the option period:
- If proceeding, track remaining milestones (appraisal, loan, title).
- If terminating, confirm earnest money release per the contract.
Work with a local guide
Option periods are short by design. The details matter, from how you deliver the option fee to the exact wording of a repair amendment. A responsive Dallas agent can help you sequence inspections, negotiate smartly, and protect your earnest money while keeping your move on schedule.
Ready to buy in Dallas with confidence? Let’s plan your offer, timeline, and inspections so you can use the option period to your advantage. Work with Unknown Company.
FAQs
How long is a typical Dallas option period?
- Many Dallas offers use 3 to 10 calendar days. In competitive listings, 3 to 5 days is common; in less competitive markets, 7 to 10 days is typical.
How much should I pay for an option fee in Dallas?
- A common range is 100 to 500 dollars. Many buyers offer 100 to 250 dollars, with higher fees used to strengthen offers.
Does the option fee apply to my purchase at closing?
- Often it can be credited at closing if your contract says so. Check the specific language in your agreement.
Do I get my earnest money back if I terminate in time?
- Usually yes, if you deliver written termination within the option period and follow the contract’s notice rules. The seller typically keeps the option fee.
Can I negotiate repairs after the option period ends?
- You can ask, but without an option right the seller is not obligated. Negotiating after the option period is riskier for buyers.
What if the seller refuses my repair requests?
- You can accept the home as-is, request a credit, continue negotiating, or terminate if you are still within the option period. After it ends, remedies are limited to what the contract allows or issues like failure to disclose.
