Buying a home in Salado and keep hearing about the “option period”? You are not alone. This short window can protect you, help you uncover issues early, and give you leverage to negotiate. In this guide, you will learn what the option period is, how timelines and fees work, and how to use it wisely for Bell County homes. Let’s dive in.
What the option period is
The Texas option period is a negotiated right in your contract that gives you an unrestricted ability to terminate within a set number of days after the effective date. In exchange, you pay a separate option fee, which is usually nonrefundable. Buyers use this time to complete inspections, review title items, and evaluate costs without being locked in if material problems arise. If you do not terminate in writing by the deadline, you remain under contract and continue toward closing unless another contract clause applies.
How the timeline works
The option period length, the fee, and the expiration date and time are all negotiated in the offer. The clock starts on the contract’s effective date. Your contract form sets how to count days and how to deliver notices, so follow it closely.
Key dates you will track
- Effective date of the contract, the day counting begins.
- Number of option days, for example 3, 5, 7, or 10 days.
- Option expiration date and time, set in the contract.
- Deadline to deliver written termination, before the expiration time.
Option period at a glance (example)
- Day 0: Contract effective date.
- Days 1–5: Complete general inspection and any specialists. Get repair estimates and review title or HOA items.
- Before expiration time on Day 5: If you choose to terminate, deliver written notice per the contract.
- After expiration: If you did not terminate, continue to appraisal, financing, and closing steps.
What you do during this window
- Order a general home inspection and any needed specialists.
- Review title commitment, HOA documents, and municipal or county records where applicable.
- Get written repair estimates and talk with your lender about any credit or repair impacts.
- Decide to request repairs or credits, proceed as is, or terminate within the deadline.
Option fee vs. earnest money
These two payments serve different purposes and are handled differently by the contract.
What each one covers
- Option fee: A negotiated amount you pay for the right to terminate during the option period. It is typically nonrefundable to the seller if you terminate, and may be credited at closing if negotiated in the contract.
- Earnest money: A separate deposit held in escrow under the contract’s terms. If you terminate properly during the option period, earnest money is typically returned to you per the contract, while the seller keeps the option fee.
Typical amounts in Bell County
Option fees are often in the low hundreds for standard single‑family homes, though competitive situations can push fees higher. Earnest money is a separate amount held by the title company per contract instructions. Exact figures depend on price point and market conditions, so plan your offer strategy with your agent.
Delivering a termination notice
If you choose to terminate, you must give written notice before the option deadline. The purchase contract specifies who you deliver it to and which delivery methods are permitted, such as email or other approved methods. When timing is tight, many buyers use more than one contract‑permitted method to reduce risk of a delivery dispute. Keep proof of delivery and confirm receipt.
Salado inspection priorities
Salado includes in‑town and rural properties, so your inspection plan should match the home.
Wells and septic systems
Many homes outside central Salado use private water wells and on‑site septic. Plan for potable water testing, flow rate checks, pump condition review, and a certified septic inspection. Check county records for permits where available, and budget time for specialist scheduling.
Historic, acreage, and outbuildings
Older homes or properties in the historic area may include original materials that require special care. Acreage or creek‑adjacent lots may involve boundary lines, easements, and floodplain considerations. Outbuildings, pools, and spas can carry separate maintenance or permitting needs. Add targeted inspections if any of these apply.
Scheduling tips for Bell County
Specialists like septic, well, or foundation pros can book quickly, especially during busy seasons. If you anticipate specialist needs, aim for a slightly longer option period, then schedule all inspections the day your offer is accepted.
Negotiating after inspections
When inspections reveal issues, you have choices. Common outcomes include the seller completing specific repairs before closing, a repair credit or price reduction, or a mutual compromise such as a capped credit for priority items. For septic or well concerns, credits are often preferred due to permitting and timing. For structural items, credits or price adjustments are common given the scope and time needed. If the results are beyond your comfort level, you can terminate within the option period and pivot to a better‑fit property.
How long your option should be
Your ideal length depends on the property and market pressure. For an in‑town Salado home with municipal utilities, 3 to 7 days can be enough if you schedule inspections right away. For rural homes with well and septic or acreage considerations, 7 to 10 days provides more room to get specialists on site. Shorter timelines tend to strengthen offers, so weigh speed against the complexity of the property.
Buyer checklist for Salado
- Before you write: Ask about current norms for option days and fees, and decide on your offer strategy.
- In your offer: Fill in option days, fee, and expiration date and time as the contract requires.
- On acceptance: Book general and specialist inspections immediately. Order title and review HOA or county records.
- During the option: Gather estimates, review lender guidance, and prepare your repair request or termination decision.
- By expiration: Deliver any termination in writing per the contract. If proceeding, document repair or credit agreements in writing.
- After: Keep records of all notices and receipts for the option fee and earnest money.
Common mistakes to avoid
- Waiting to schedule inspections, which compresses your decision window.
- Assuming emails are enough without verifying delivery methods allowed by the contract.
- Confusing the option fee with earnest money, they are separate with different rules.
- Letting the deadline pass without a written decision, which removes your unrestricted termination right.
Ready to craft a smart option strategy for a Salado home? You deserve clear steps, fast scheduling, and local insight on wells, septics, and rural lots. Reach out to Bradley Sheppard to walk through timelines, fees, and inspections with a plan that fits your move.
FAQs
What is the option period in Texas?
- A negotiated window after the contract’s effective date where you can terminate for any reason in exchange for a typically nonrefundable option fee.
How much is the option fee in Bell County?
- Often in the low hundreds for standard homes, but amounts vary with price and competitiveness and are negotiated in the offer.
Do I get earnest money back if I terminate in time?
- Typically yes, earnest money is returned per contract terms if you terminate within the option period, while the seller keeps the option fee.
How do I send a termination in Salado?
- Deliver a written notice before the deadline using the contract’s permitted methods, and keep proof of delivery.
What inspections are common for Salado homes?
- General and pest inspections are standard, with well, septic, foundation, roof, HVAC, and survey review added as the property requires.
How long should my option period be for rural property?
- Aim for 7 to 10 days to allow for well, septic, and other specialist inspections and to gather estimates in time.
