Are you wondering what happens after your offer is accepted on a Plano home? The option period is your safety net, but it only works if you understand the deadlines, fees, and next steps. You want time to inspect, negotiate, or walk away with minimal cost if something is not right. In this guide, you will learn how the option period works in Texas, what to do in Plano specifically, and how to use timelines that protect your leverage without delaying closing. Let’s dive in.
What the option period means in Texas
The option period is a short, negotiated window after the contract goes effective when you can terminate for any reason. You simply deliver written notice of termination before the deadline in your contract. In exchange for this right, you pay the seller a non-refundable option fee.
During the option period you complete inspections, review documents, and decide whether to move forward, request repairs or credits, or terminate. If you terminate on time and follow the contract, your earnest money is typically refundable. The option fee usually stays with the seller.
Key contract pieces to confirm
- The exact number of option days and the expiration time
- Whether days are calendar days or business days as written in the contract
- Who receives notices and how notice must be delivered
- Who receives the option fee and where earnest money is held
- Any agreement to extend the option period must be in writing
Option fee vs. earnest money
These two payments serve different purposes and follow different rules.
- Option fee. This is the price you pay for the right to terminate. It is usually non-refundable once delivered. If you terminate during the option period, the seller keeps this fee.
- Earnest money. This is your good faith deposit held in escrow. If you terminate within the option period according to the contract, your earnest money is typically returned to you. If you default outside your rights, your earnest money may be at risk.
Amounts vary by market and negotiation. In a competitive Plano market, buyers often raise option fees and may shorten the option period to strengthen an offer. In a balanced market, option fees are often lower and the option period may be longer.
How long should you ask for in Plano?
Your timeline depends on market conditions and how quickly inspections can be completed.
- Competitive market. Many buyers use a shorter option period, such as about 3 calendar days, paired with a higher option fee to make the offer stand out.
- Balanced market. A common middle ground is about 7 calendar days, which typically allows time for general and specialist inspections.
- Buyer-favored market. Buyers sometimes secure 10 to 14 days for deeper due diligence with a modest option fee.
Always verify the exact day count in your contract and plan backward from the deadline.
What to do during the option period
Your goal is to gather enough information to make a confident go or no-go decision before the deadline.
- Order a general home inspection and a wood-destroying insect report. Both are common in Texas, and the WDI report is often required by lenders.
- Add specialists as needed. HVAC, plumbing, electrical, roof, chimney, pool, or septic inspections may be appropriate based on the property.
- Review seller disclosures and property records. Look for past repairs, remodel permits, or known issues.
- Review HOA documents if the home is in an HOA. Check CC&Rs, bylaws, budgets, and any planned assessments.
- Review the title commitment and survey. Confirm easements, setbacks, and exceptions that might affect your use of the property.
- Check property tax history and potential assessments in Collin County.
Timing and scheduling in Plano
Schedule inspections immediately when your contract goes effective. General inspectors can often get onsite within 24 to 72 hours, but spring and early summer can book up quickly. If you cannot complete needed inspections before the deadline, ask the seller for a written extension of the option period. Verbal assurances are not enough.
Negotiating after inspections
Once you have reports, you decide how to proceed. Common outcomes include:
- Seller agrees to repair specific items before closing, often focused on major systems, safety, or WDI treatment
- Seller provides a credit at closing or adjusts the price
- Seller declines repairs, and you either accept the home as is or terminate within your option period
- Seller supplies receipts or service agreements instead of completing work immediately
In tighter markets, sellers are less likely to offer large concessions. Focus requests on material items that affect safety, function, or lender approval. If the seller refuses and the issues are a deal breaker, you can terminate before the option period expires. The option fee is forfeited and your earnest money is typically refunded according to the contract.
Practical timelines you can use
Below are example structures you can discuss with your agent. Exact dates must be written into your contract.
Competitive market timeline (about 3 days)
- Day 0. Contract effective. Pay the option fee and deposit earnest money. Order general and WDI inspections immediately.
- Day 0 to 1. Inspections occur and specialist follow-ups are scheduled as needed.
- Day 2. Review reports and gather quick estimates for major items.
- Day 3. Deliver a repair or credit request or deliver written termination before the deadline. If more time is needed, request a signed written extension.
Balanced market timeline (about 7 days)
- Day 0. Order general, WDI, and any likely specialists. Request HOA docs and review tax and title items.
- Day 1 to 3. Complete inspections and identify any big-ticket concerns.
- Day 4 to 6. Gather estimates and confirm any lender-required repairs.
- Day 6 to 7. Deliver a repair request or terminate in writing before the deadline.
Buyer-favored timeline (10 to 14 days)
- Day 0 to 2. Complete general and WDI inspections.
- Day 3 to 7. Schedule specialist inspections and contractor quotes.
- Day 8 to 13. Negotiate repairs or credits with the seller.
- Final day. Deliver acceptance of terms or written termination before the deadline.
Plano and Collin County specifics
- HOA review. Many Plano neighborhoods are in active HOAs. Ask for the full packet early since fees and turnaround times can affect your schedule.
- Property taxes and assessments. Review Collin County appraisal records to understand tax history, exemptions, and any special district assessments that could affect your bill.
- Utilities and districts. Confirm service providers and whether any utility district obligations exist.
- Title and survey. Watch for easements and setbacks that might affect how you use the property.
- Lender requirements. Many lenders require WDI treatment or completion of certain repairs before closing. Coordinate early to keep your loan on track.
Buyer checklist for the option period
Use this as your quick guide from day one through your deadline.
- Confirm the exact deadline and whether your contract uses calendar or business days
- Pay the option fee and deposit earnest money as required
- Order general and WDI inspections the day the contract goes effective
- Line up specialists if your general inspector recommends them
- Request HOA documents and review rules, budgets, and any planned assessments
- Review title commitment and survey for easements or exceptions
- Ask contractors for estimates on material repairs
- Decide whether to request repairs or a credit and prepare a clear written request
- Deliver written termination before the deadline if you choose to walk away
- If you need more time, request a signed written extension of option days
Common mistakes to avoid
- Letting the deadline slip. Missing the option period by even one day can waive your unilateral right to terminate under the option.
- Confusing option fee and earnest money. The option fee is usually non-refundable. Earnest money is typically refundable if you terminate on time.
- Relying on verbal agreements. All extensions and repair agreements must be in writing and signed.
- Waiting to schedule inspections. Plano inspectors can book up fast, especially in peak months.
- Requesting long lists of cosmetic items. Focus on safety, function, lender requirements, and major systems.
Work with a local, process-driven team
A smooth option period comes down to speed, clarity, and negotiation. You want inspections lined up immediately, clean written notices, and a strategy that balances protection with offer strength. With a team structure and financing know-how, you can keep timelines tight without giving up leverage.
If you want a clear plan for your next Plano purchase, reach out to a local team that combines mortgage background, high transaction volume, and tight systems. Have questions about your timeline or how to structure your option period? Connect with Joseph Bazan for practical, step-by-step guidance.
FAQs
What is the option period in a Texas home purchase?
- It is a negotiated window after the contract is effective when you can terminate for any reason by giving written notice before the deadline, in exchange for a non-refundable option fee.
How do option fee and earnest money differ for Plano buyers?
- The option fee pays for your right to terminate and is usually non-refundable, while earnest money is held in escrow and is typically refundable if you terminate within the option period.
What inspections should I complete during the option period in Plano?
- Order a general home inspection and a wood-destroying insect report, then add specialists like HVAC, roof, plumbing, electrical, pool, or septic based on findings.
What are typical option period lengths in Plano?
- In competitive conditions you might use about 3 days, in balanced markets about 7 days, and in buyer-favored markets 10 to 14 days, depending on negotiation.
What happens if the seller refuses repairs after inspections?
- You can proceed as is or terminate before the option period expires, which typically returns your earnest money under the contract while the seller keeps the option fee.
What if I miss the option period deadline by a day?
- Missing the deadline can waive your unilateral termination right, so seek a written extension before the deadline or consult your agent promptly if time has already passed.