Buying in Alamo Heights or Uptown Central and keep hearing about the “option period”? You are not alone. This small window can make a big difference in how safe and confident you feel after your offer is accepted. In this guide, you will learn what the option period is, how it works in Texas contracts, what it costs, and smart ways to use it in central San Antonio. Let’s dive in.
Option period basics
Simple definition
The option period is a short, negotiated time after your contract is effective when you can cancel for any reason. You pay a separate option fee for this right. If you terminate during the option period, you usually get your earnest money back, and the seller keeps the option fee.
Here is an easy example: You agree to a 7‑day option period with a $200 option fee. During those 7 days, you inspect the home. If you decide not to move forward, you give written notice before the deadline. Your earnest money is refunded, and the seller keeps the $200 option fee.
Why it matters in San Antonio
The option period gives you time to inspect, ask for repairs or credits, or cancel if needed. In older, established areas like Alamo Heights, many homes have aging systems. A meaningful option period helps you uncover issues and make an informed decision without risking your full earnest money.
How the Texas contract handles it
What you negotiate up front
In the standard Texas contract, you and the seller agree on two items:
- The length of the option period (number of days)
- The option fee amount
You typically pay the option fee to the seller or title company shortly after both parties sign. The fee is consideration for your unrestricted right to terminate during that period.
Option fee vs. earnest money
- Option fee: A smaller, separate payment for your right to terminate. If you cancel during the option period, the seller keeps this fee. If you close, the contract often allows the fee to be credited to you at closing.
- Earnest money: A larger deposit held by the title company that shows good faith. If you cancel within the option period, you usually get this back. If you cancel after the option period without another contract right, your earnest money may be at risk.
Deadlines and written notice
The option period is measured in days as stated in your contract. You must deliver written notice of termination before the deadline. If you miss it, the unrestricted right to terminate ends. Always confirm the exact expiration date and time with your agent so you do not cut it close.
Typical timelines in central San Antonio
Common lengths buyers use
Option periods in Texas often range from 3 to 10 days. A common range is 5 to 7 days. In multiple‑offer situations, buyers sometimes shorten to 2 to 3 days or even waive the option period to compete. Shorter time frames increase risk, so balance speed with protection.
How inspections fit in
The option period is your inspection window. Aim to schedule your general home inspection within the first 48 to 72 hours so you have time to review results and respond.
Common inspections buyers order:
- General home inspection
- Wood‑destroying insect (termite) inspection
- Roof review and attic check
- Specialty inspections if needed, such as HVAC, electrical, plumbing
- Sewer scope for older homes or if you have concerns
- Pool inspection if applicable
Appraisal and loan timelines
The option period is separate from your lender’s process. Appraisal and financing follow their own timelines. An appraisal issue does not automatically extend or replace your option right. If needed, you can use your option period to terminate for any reason, but you must do so before it expires.
What it costs and what is at stake
Typical option fees
Option fees often fall between $100 and $500. In competitive cases or higher‑priced homes, some buyers offer more to strengthen their offer. This fee is generally nonrefundable if you terminate during the option period. If you close, it is commonly credited to you at closing according to the contract.
Inspection cost ranges
Local rates vary, but here are general ranges you may see:
- General home inspection: about $300 to $600
- Termite (WDI) inspection: about $50 to $150
- Sewer scope: about $100 to $300
- Specialty inspections, such as roof or HVAC: $200 and up
The risk of waiving or shortening
If you waive or make the option period very short, you limit your ability to cancel after new information comes to light. In older homes across Alamo Heights and nearby neighborhoods, that can be costly. Consider the age of the property, your comfort with potential repairs, and how quickly inspectors can get onsite.
Smart strategies for Alamo Heights and Uptown Central
For first‑time buyers
- Keep a reasonable option period so you can inspect and decide with less stress.
- Focus on big‑ticket items first: roof, foundation, HVAC, plumbing, and electrical.
- If major issues appear, you can request repairs or credits, or terminate within the option period.
For move‑up buyers
- If the market is hot, consider a shorter option period and a higher option fee to stay competitive.
- Pre‑book your preferred inspector so you can move fast once your offer is accepted.
- Pair speed with protection. You can be competitive without giving up your inspection window.
Older homes, unique benefits
Alamo Heights and nearby central neighborhoods feature many older homes with character. That often means older systems and materials. A well‑planned option period helps you vet the home’s condition and prioritize repairs without risking your earnest money.
Step‑by‑step checklist right after acceptance
- Confirm the effective date and the exact option deadline in writing.
- Pay the option fee according to the contract instructions.
- Schedule the general inspection immediately, then add specialists as needed.
- Deposit earnest money by the contract deadline with the title company.
- Review inspection reports with your agent. Decide whether to proceed, request repairs or credits, or terminate within the option period.
- If you need more time, ask for an extension in writing. The seller may request an additional option fee.
Real‑world scenarios
- Scenario A: Your inspector finds significant foundation concerns on day 3. You deliver written termination before the option end. You get your earnest money back, the seller keeps the option fee.
- Scenario B: Your inspector finds minor plumbing issues. You submit an amendment asking for repairs or a credit. If you do not agree by the deadline, you can still terminate within the option period.
- Scenario C: You offered a 2‑day option to compete. The inspection happens right after the period ends and reveals issues. Your unrestricted right to terminate has ended, so your options are more limited.
How your agent adds value
- Recommends the right option period length for the home and current market conditions.
- Coordinates fast, reliable inspectors who can get onsite right away.
- Tracks deadlines, delivers notices in writing, and keeps you on schedule.
- Advises on negotiation tradeoffs, including option fee amounts and potential repair credits.
Buying in central San Antonio should feel clear and manageable. If you want a calm, concierge‑style process from offer to closing, connect with Evalon Cantu. Let’s build a plan that balances protection and competitiveness for your next move. Se habla español.
FAQs
What is the option period in Texas home buying?
- It is a short, negotiated window after your contract is effective when you can terminate for any reason in exchange for paying an option fee.
How long is a typical option period in Alamo Heights?
- Many buyers use 5 to 7 days, though 3 to 10 days is common. In multiple‑offer situations, some buyers shorten to 2 to 3 days to compete.
Is the option fee refundable if I cancel?
- No. If you terminate during the option period, the seller usually keeps the option fee. If you close, it is often credited at closing per the contract.
Do inspections have to happen during the option period?
- You can schedule inspections anytime, but results found after the option period ends do not give you the same unrestricted right to terminate.
What happens if I miss the termination deadline?
- Your unrestricted right to terminate ends. You would need the seller’s agreement or another contract right to cancel after the deadline.
Does the option period affect the appraisal or my loan?
- No. Appraisal and financing are separate timelines. Use the option period to inspect and decide, and coordinate with your lender on appraisal and loan steps.
