Thinking about a home in Rollingwood and hearing talk about the “option period”? You are not alone. It is one of the most important windows in a Texas purchase, especially in high-demand neighborhoods near Westlake and downtown Austin. In the next few minutes, you will learn what the option period is, how the fees and deadlines work, which inspections to prioritize, and how to use this time to protect your interests without losing momentum. Let’s dive in.
What the Texas option period is
The option period is a short, agreed window in a Texas resale contract when you can terminate for any reason. You pay an option fee to the seller for this right. If you cancel within that window, your earnest money is usually returned to you, and the seller keeps the option fee per the contract.
Most resale transactions use the Texas Real Estate Commission One to Four Family Residential Contract. That form includes an option clause where you and the seller fill in the number of days and the option fee. The purpose is simple. You get uninterrupted time to inspect, verify information, and make a confident decision without risking your earnest money.
Important: the option period is separate from financing or appraisal contingencies. Those have different rules and deadlines.
Fees, deposits, and deadlines
Option fee vs. earnest money
- Option fee: You pay this directly to the seller or as the contract states. It is typically nonrefundable. If you end the contract during the option period, you usually get your earnest money back, but the seller keeps the option fee.
- Earnest money: This is your good faith deposit held by the title company. If you close, it applies to your purchase price. If you terminate, it is disbursed according to the contract.
Local handling can differ. Some sellers prefer option fees delivered to their agent or handled by title. Make sure the contract states how funds are delivered and get receipts for both payments.
How long the option period lasts
Across Texas, 3 to 10 calendar days is common. Five days is a frequent baseline. In competitive markets like Rollingwood, buyers sometimes shorten to 1 to 3 days to strengthen an offer. In slower conditions, 7 to 10 days gives more breathing room for specialty inspections.
Your contract will show the exact expiration date and often a specific time. Deadlines typically use calendar days, so weekends and most holidays count unless the contract says otherwise. Confirm the exact time and delivery method for any notice to avoid missing the cutoff.
How to terminate during the option period
If you choose to walk away, you must send written notice before the option deadline using the method in your contract. Time matters. Work with your agent to send notice correctly and on time, and coordinate with the title company on the earnest money release.
Inspections to schedule first
Day 1 to Day 3 game plan
Most buyers schedule the general home inspection on day one. Plan specialty inspections based on that first report. In Rollingwood, short option periods are common, so have your inspector, plumber, and any needed specialists on standby.
A typical timeline looks like this:
- Day 1: General inspection, roof review, and termite report if possible.
- Day 2: Sewer scope, HVAC or pool specialist as needed.
- Day 3: Foundation engineer or structural specialist if flagged by the general inspector. Begin repair or credit negotiations right after you receive reports.
Common inspections and typical costs
- General home inspection: Structural, systems, electrical, plumbing, HVAC, roof, interior and exterior. Typical cost is about $300 to $800. Larger or luxury homes cost more.
- Wood-destroying insect (termite) inspection: Often required by lenders. Typical cost is about $50 to $150.
- Roof inspection: Sometimes included in the general inspection, or ordered separately for complex roofs.
- Specialty inspections as needed: HVAC, sewer scope, pool or spa, chimney, or mold and air quality testing. Costs vary by specialist.
- Foundation or structural engineer evaluation: When movement is suspected, plan $500 to $1,500 or more depending on scope.
Reports often arrive within 24 to 72 hours. With very short option periods, ask inspectors for rush scheduling and quick-turn reports.
Rollingwood watchouts
- Geology and foundations: Parts of Travis County include expansive clays on top of limestone bedrock. Watch for signs of movement, slab cracks, or settlement. If the general inspector flags concerns, bring in a foundation specialist or engineer.
- Drainage and retaining walls: Many Rollingwood lots are sloped or use retaining structures. Have drainage, grading, and walls evaluated for stability and maintenance needs.
- Mature trees: Large oaks and other mature trees can affect foundations, driveways, and sewer lines. Consider an arborist or at least a sewer scope.
- Pools and terraces: Older pools and hillside terraces often need targeted inspections for mechanicals, structure, and waterproofing.
- HVAC and roofs: Central Texas heat and hail cycles can shorten service life. Verify ages, service records, and condition.
- Flood and drainage channels: Some properties sit near drainageways. Review available maps and records and ask inspectors to comment on site drainage.
How to use your leverage
What you can do during the option period
- Terminate and recover earnest money as allowed by your contract, with the seller keeping the option fee.
- Request repairs, a price reduction, or a seller credit.
- Renegotiate other terms such as closing date or concessions.
- Proceed as is if the findings are acceptable.
How sellers often respond
- Accept your requests as written.
- Offer partial repairs or a closing credit.
- Decline repairs. You then choose to accept, continue negotiating, or terminate before the deadline.
If the option period expires and no agreement is in place, you usually lose the unilateral right to terminate for dissatisfaction alone. You still have any other contract rights that apply, but your leverage shifts.
Strategy in a competitive Rollingwood market
Rollingwood often sees low inventory and strong demand. Many successful buyers keep leverage by offering a shorter option period with a larger option fee, rather than waiving the option entirely. For example, a 2 to 3 day window with a meaningful fee can give you time for core inspections while making your offer attractive to the seller.
Large and complex properties often need specialty inspections. Waiving the option period greatly increases risk, especially for homes with pools, retaining walls, or older systems. If a seller provides a recent pre-listing inspection, it can help, but it does not replace your own due diligence.
Smart tradeoffs to consider
- Shorter option period: Makes your offer stronger, but reduces time for discovery. Have inspectors lined up before you submit the offer.
- Longer option period: Gives you more protection and time for specialists, but may be less competitive in multiple-offer situations.
- Higher option fee: Signals commitment and can help win the deal. Match the fee to the property and market conditions.
In Rollingwood, it is common to combine a short window with a strong option fee. That blend balances seller confidence and buyer protection.
Buyer checklist for the option period
- Confirm the exact deadline and the method for delivering notices in your contract.
- Pay the option fee and earnest money as stated and get receipts.
- Schedule the general inspection for day one. Hold backup times for specialists.
- Order a termite report and a sewer scope. Add roof, HVAC, pool, or chimney specialists as needed.
- If your inspector flags movement, schedule a foundation engineer right away.
- Review reports the day they arrive. Decide to request repairs, ask for a credit, accept as is, or terminate.
- Put any agreement in writing and get it signed before the deadline.
- If terminating, send written notice on time using the contract method and confirm receipt.
Seller checklist at a glance
- Confirm how the option fee will be delivered and document receipt.
- Decide in advance which repairs or credits you are comfortable offering to keep negotiations efficient.
- Share any pre-listing inspection you commissioned to reduce uncertainty and speed decisions.
- Grant reasonable access for inspections. Quick cooperation helps buyers move forward.
Rollingwood scenarios to learn from
- Scenario A: A buyer offers list price and waives the option period. The offer may stand out to the seller, but the buyer has no unilateral right to terminate and takes on more risk.
- Scenario B: A buyer offers slightly above list with a 3 day option and a strong option fee. The buyer gets a brief window for key inspections while the seller receives meaningful compensation for time off market.
- Scenario C: A buyer offers full price with a 10 day option and standard earnest money. The buyer retains maximum protection and time for specialists, but may be less competitive if there are multiple offers.
Final thoughts
The option period is one of the most valuable rights you have as a Texas buyer. In Rollingwood, where homes are high value and often complex, using this time well can protect your budget and give you the confidence to close. Align your option length and fee with the home, the market, and your risk tolerance. Then act fast on inspections so you can make clear, data-backed decisions.
If you want a strategy that matches the pace of Rollingwood and the details of a specific property, connect with Leah Petri for discreet guidance, curated access, and a concierge-level process. Receive Exclusive Listings in Your Inbox.
FAQs
What is the option period in a Texas home purchase?
- It is a short, negotiated window in the resale contract when you can cancel for any reason. You pay an option fee to the seller for this right, and your earnest money is usually returned if you terminate on time.
How long is a typical option period for Rollingwood homes?
- Common ranges are 3 to 10 calendar days. In a competitive Rollingwood market, many buyers offer 1 to 3 days to stand out, balanced by a stronger option fee.
What inspections should I schedule during the option period?
- Start with a general home inspection on day one. Add termite, sewer scope, roof, HVAC, pool, and foundation or structural specialists as the home and initial findings suggest.
Are weekends and holidays included in the option deadline?
- Yes, option periods typically use calendar days. Confirm the exact expiration date and time shown in your contract and follow the required notice method.
What is the difference between the option fee and earnest money?
- The option fee goes to the seller for your right to terminate during the option period and is usually nonrefundable. Earnest money is held by the title company and is applied or returned as the contract provides.
Can I negotiate repairs or credits after inspections in Rollingwood?
- Yes. You can request repairs, a credit, or a price change. The seller may agree, counter, or decline. If no agreement is reached, you can terminate before the option deadline.
