Heard that Texas buyers can back out after going under contract? In Memorial and west Houston, that protection exists if you negotiate it into your offer. It is called the option period, and it gives you time to inspect, negotiate, or walk away with your earnest money protected. In this guide, you will learn exactly how the option period works, what it costs, what to inspect in Memorial homes, and how to use those days to your advantage. Let’s dive in.
What the option period is
The option period is a negotiated time in your Texas purchase contract that gives you an unrestricted right to terminate the contract for any reason during that window. You purchase this right by paying an option fee. That fee compensates the seller for taking the home off the market while you complete inspections and make decisions.
If you end the contract during the option period using the required notice, the seller typically keeps the option fee and your earnest money is released back to you per the contract. If you move forward to closing, many contracts credit the option fee toward your purchase price or closing costs. Always check the exact contract language you are signing.
How it protects you
During the option period you can schedule inspections, review disclosures, confirm the property’s condition, and negotiate repairs or credits. If something does not line up with your expectations, you can terminate within the deadline. This gives you control and reduces risk.
How it fits with other deadlines
The option period runs alongside other contract timelines like earnest money delivery, title review, and loan approval. The right to terminate under the option clause is separate from other remedies. The option period usually begins on the contract’s effective date, which is the date both parties sign and delivery is made per the contract’s notice provisions. Make sure your contract clearly states the number of days and the exact expiration time for your option period, and follow the notice instructions exactly.
Typical timelines and fees in Memorial
How long the option period lasts
In many Texas deals, option periods range from 3 to 10 days. A 5 to 7 day window is common because it allows time for a general inspection and any needed specialists. In a hotter Memorial or Memorial Villages listing, you may need a shorter period to compete. For older or less competitive homes, a standard 7 day period is often acceptable.
What option fees look like
Option fees are negotiable. A typical range in many markets is 100 to 300 dollars. In competitive situations, buyers sometimes offer 500 to 1,000 dollars or more. If you terminate during the option period, the seller usually keeps the option fee. If you close, the fee is commonly credited to you, subject to your contract terms.
What to inspect in Memorial homes
Must-have inspections
- General home inspection: Usually scheduled on day 1 or 2. Expect a broad review of structure, roof, electrical, plumbing, HVAC, and major appliances. Typical cost is 300 to 600 dollars depending on size and complexity.
- Termite and wood-destroying insect inspection: Common in Houston’s climate. Typical cost is 75 to 200 dollars.
- Sewer scope: Recommended for older homes or if there are signs of backups. Typical cost is 100 to 300 dollars.
- Roof inspection or certification: Helpful for older roofs or recent repairs. Typical cost is 150 to 400 dollars.
- Foundation or structural evaluation: Important in Houston where soil movement can affect slab foundations. Typical cost is 400 to 1,200 dollars or more if an engineer is engaged.
- Specialist trades as needed: HVAC, electrical, plumbing, or pool inspections based on your general inspector’s findings.
Memorial-specific priorities
- Foundation and drainage: Many older Memorial homes use slab foundations. Check for cracks, doors that stick, uneven floors, or grading that pushes water toward the house.
- Roof condition: Age, storm wear, and prior patchwork repairs are common issues.
- Mature trees and root systems: Large trees are a Memorial hallmark. Roots can influence drainage and foundations.
- Flood risk and elevation: Memorial has areas with different flood risks due to nearby creeks, bayous, and reservoirs. Verify flood zone status with your title team and confirm any elevation certificates if insurance could apply.
- Pools and safety items: Many older Memorial homes include pools. Inspect pool shells, equipment, and fencing for safety and cost considerations.
- Older electrical systems: Watch for outdated wiring in older renovations.
- Permits on renovations: Kitchens, baths, additions, and garage conversions should be checked against public permit records.
Use the option period strategically
Negotiate repairs or credits
Your primary goal is to confirm the home’s condition and decide whether to proceed as-is, request repairs or credits, or terminate. If you seek repairs or a price credit, submit a clear written request or contract amendment early in the option period. Sellers can accept, refuse, or counter. Keep all communication in writing and attach reports or estimates that support your request.
When to walk away
If inspections reveal issues that do not fit your budget or comfort level and negotiations stall, deliver the written termination notice before the option deadline. Follow the contract’s delivery method and confirm receipt. When you terminate within the option window, the seller typically keeps the option fee and your earnest money is released back to you per the contract.
Offer terms for competitive homes
In a multiple-offer setting, you can adjust option terms to stand out. Examples include a shorter option period, a higher option fee, or both. Value-seeking buyers often choose a balanced path, such as a standard 7-day period with a modest fee. If you shorten the period, schedule inspections immediately so you do not lose leverage.
Protect your rights with good process
- Confirm the contract’s effective date and option expiration time in writing.
- Pay the option fee and deposit earnest money as the contract requires.
- Schedule inspections as soon as the contract is executed.
- Deliver all notices exactly as the contract instructs. Missing a deadline can remove your option right to terminate.
Local resources and vendor tips
When buying in Memorial and west Houston, it helps to use providers who know local homes and risks. Consider:
- Harris County Flood Control District for localized floodplain information and maps.
- Houston Permitting Center or Houston 311 for permit lookups on past renovations and complaints.
- Harris County Appraisal District for property history, year built, and parcel details.
- Local title companies and surveyors for flood determinations, surveys, and easement confirmations.
- Licensed general home inspectors with Houston experience. Engage structural engineers, pest inspectors, sewer-scope providers, roofers, and pool inspectors as needed.
Cost guidance for specialists can vary, but typical local ranges include 300 to 600 dollars for general inspections, 400 to 1,200 dollars for structural evaluations, 100 to 300 dollars for sewer scopes, 150 to 400 dollars for roof inspections, and 75 to 200 dollars for termite checks. Trade specialists often charge 100 to 300 dollars per visit.
7-day plan and checklist
7-day option period plan
Day 0 (effective date)
- Confirm the effective date and the exact option expiration time in the contract.
- Pay the option fee per the contract. Confirm earnest money is deposited as required.
- Schedule a general inspection for day 1 or 2. Order termite and sewer scope if indicated by the home’s age and location.
Day 1–2
- Attend the general inspection or be available for questions.
- If needed, book a structural engineer, roofer, HVAC, electrical, plumbing, or pool inspector.
- Start a quick permit search and review property records for any additions.
Day 3–4
- Review inspection reports and identify major items.
- Get quotes for big-ticket repairs such as foundation, roof, or major systems.
- Decide whether to negotiate or prepare to terminate.
Day 5–6
- Send a written repair or credit request using the appropriate amendment form.
- Negotiate in writing. Confirm who will perform repairs and timelines if the seller agrees.
- If negotiations fail and issues are deal breakers, prepare your termination notice.
Day 7
- If terminating, deliver written notice per the contract and confirm receipt before the deadline.
- If proceeding, finalize any agreed amendments and repair timelines.
Documents to keep
- Signed contract with the effective date and option paragraph.
- Receipts for the option fee and earnest money deposit.
- All inspection reports and specialist evaluations.
- Written repair requests, responses, and signed amendments.
- Notices and proof of delivery for any termination or other required notices.
Ready for guidance?
Buying in Memorial means balancing speed, due diligence, and negotiation. Your option period is your window to confirm the home’s condition, secure fair terms, or walk away with your earnest money protected. With a clear plan and the right local team, you can move forward with confidence.
If you want help structuring option terms that fit the Memorial market and your goals, connect with Kesley Flanagan. Let’s talk about your next move.
FAQs
What is the Texas option period in homebuying?
- It is a negotiated contract window that gives you an unrestricted right to terminate for any reason, in exchange for paying an option fee.
What happens to my money if I terminate during the option period?
- The seller usually keeps the option fee, and your earnest money is typically released back to you if you terminate within the option period per the contract.
How long is a typical option period in Memorial?
- Many buyers use 5 to 7 days, but you may see 3 to 10 days depending on competition and the home’s condition.
Can a seller refuse my repair requests during the option period?
- Yes. Sellers can accept, refuse, or counter. You can then proceed as-is or terminate before the option deadline.
What inspections should I prioritize for Memorial homes?
- Start with a general inspection, then add termite, sewer scope, roof, and foundation evaluations. Pools and system specialists may be needed based on findings.
What if I miss the option period deadline?
- You may lose your contractual right to terminate under the option clause. This can complicate any earnest money dispute and limit your options.
