Writing an offer on a Frisco home soon? The option period can be your safety net if you use it well — and a stress point if you don’t. You want clarity on timelines, costs, and what to do first so you can move fast without missing something important. This guide walks you through how the Texas option period works in Frisco, what it typically costs, and a practical 7-day plan to protect your purchase. Let’s dive in.
Option period basics in Texas
The option period is a negotiated window in the standard Texas residential contract that gives you an unrestricted right to terminate for any reason. This right exists only if you pay an option fee as stated in the contract.
The clock starts on the contract’s effective date and runs for the number of days you and the seller agree to. If you decide to terminate, you must deliver written notice within the option period using the method required by the contract. When you terminate on time, the contract ends and your earnest money is typically refunded by the title company per the contract.
Option fee vs earnest money
Understanding these two payments helps you avoid mistakes.
Option fee
- Paid to the seller as stated in the contract in exchange for the unrestricted termination right.
- Generally not refundable if you terminate during the option period.
- Compensates the seller for taking the home off the market while you inspect.
Earnest money
- A good-faith deposit held by the title company.
- Refunded to you if you timely terminate during the option period per the contract.
- May be at risk if you default outside your contract rights.
Frisco timelines and norms
In Collin County and the greater DFW resale market, option periods of 5 to 10 days are common, with 7 days used frequently. In hot, multiple-offer situations, buyers sometimes shorten to 3 to 4 days or waive the option period to compete. For new construction, builders may limit or exclude an option period, or set a shorter one and require a higher fee.
Choose your length based on property condition, your risk tolerance, and competition.
7-day option game plan
Use this simple timeline to stay ahead.
Day 0 (effective date)
- Pay the option fee and deliver earnest money as required by the contract.
- Order the general home inspection and a wood-destroying insect (WDI) inspection.
- Request HOA documents if applicable.
- Review the seller’s disclosure and any provided reports.
- Touch base with your lender about appraisal and loan timing.
Days 1–3
- Complete the general inspection and specialty inspections as needed.
- Review reports as they arrive.
- If issues surface, start gathering repair estimates, especially for foundation, roof, or HVAC.
Days 4–6
- Decide whether to terminate, negotiate repairs or credits, or proceed.
- Prepare written notice for termination or a written repair request.
Day 7
- The option period ends at midnight. Make sure any termination is delivered in writing before it expires.
Smart inspection scheduling
Book inspections early so you have time to react.
- General home inspection in the first 48 to 72 hours.
- WDI/termite inspection, often the same day as the general inspection.
- Roof evaluation if the general inspection flags concerns.
- Foundation or structural engineer if you see cracking, doors sticking, or signs of movement. Allow 3 to 5 business days for scheduling.
- As needed: sewer scope, HVAC specialist, pool inspection, radon where applicable.
Frisco factors to review
Frisco and Collin County have local considerations worth prioritizing.
- Soil and foundation: Expansive clay soils can contribute to foundation movement. Structural evaluations are common in resale transactions.
- HOAs: Many neighborhoods have active HOAs. Review governing documents, fees, and restrictions early in your option period.
- New construction: Builders often use their own contracts and may limit option rights. Review warranties and processes and consider independent inspections even if limited by the builder’s form.
Typical costs to expect
These local estimates help you plan. Actual pricing varies by provider and property.
- General home inspection: $300–$600
- WDI/termite inspection: $75–$150
- Sewer scope: $150–$400
- Structural/foundation inspection: $300–$1,000+
- Option fee: $100–$500 is common, though buyers may offer more in competitive situations
- Earnest money: often about 1% of purchase price in some markets, but it is negotiable
Negotiation moves and risks
Shortening or waiving the option period can make your offer stronger, but it increases your risk. You have less time to find defects and fewer exit options if something serious comes up.
If you need a shorter window to compete, offering a larger option fee can help. Sellers view a higher fee as meaningful, but it does not change your rights. After the option period ends, you lose your automatic right to terminate. You can still request repairs, but the seller does not have to agree.
New construction in Frisco
Builder contracts often limit or exclude the option period. Before signing, understand the builder’s warranties and punch-list process. Consider independent inspections such as pre-drywall and final walk-through inspections, even if the builder’s form restricts some items. Clarify how the builder handles credits or repairs and what timelines apply.
Wrap-up and next steps
The option period is your due diligence window. When you schedule inspections quickly, review HOA and disclosure documents early, and make decisions by Day 6, you protect your investment and keep your contract on track. A focused plan gives you leverage to negotiate repairs or move forward with confidence.
If you want a Frisco-savvy plan for your offer and inspections, connect with Niche Realty Group. Our team guides you through timelines, inspections, and negotiations so you can buy with clarity and confidence.
FAQs
Earnest money refund after option termination in Texas
- If you terminate in writing within the option period under the standard contract, your earnest money is typically refunded and the seller keeps the option fee.
Appraisal timing vs the option period in Frisco
- The option period is for inspections and due diligence. Appraisals often occur later on the lender’s schedule, so coordinate with your lender to align timelines.
Is the option fee credited at closing in Texas
- The option fee is generally non-refundable if you terminate. Parties can agree to credit it at closing, but that must be written into the contract.
Can a seller refuse repairs during the option period
- Yes. A seller can agree, refuse, or counter. If you need to walk away, deliver termination in writing before the option period expires.
Finding a foundation issue after the option period in Frisco
- Your leverage is reduced. You can negotiate with the seller for repairs or credits, or explore contract remedies if a known defect was not disclosed; consult your agent and, if needed, an attorney.
