Buying in Mansfield and keep hearing about the “option period,” but not sure what it really does for you? You are not alone. In a competitive DFW suburb like Mansfield, this short window can protect your earnest money and give you time to inspect, negotiate, or walk away if needed. In this guide, you will learn what the option period is, how fees and timelines work, which inspections to prioritize locally, and how to use the option period to make a confident decision. Let’s dive in.
What the Texas option period means
The option period is a negotiated window in your contract that gives you the unconditional right to terminate for any reason. You must deliver written notice before the deadline for it to apply. The right comes from the standard Texas contract forms, such as the TREC One to Four Family Residential Contract. For exact language, review your contract and the TREC contract forms.
Option fee vs. earnest money
- Option fee: paid by you to the seller for the right to terminate during the option period. It is usually nonrefundable, but commonly credited to you at closing if you proceed.
- Earnest money: a separate deposit held by the title company as a sign of good faith. If you terminate within the option period, you typically receive your earnest money back per the contract.
- These are different payments. The option fee does not replace earnest money unless negotiated.
How to terminate within the window
- Deliver a written Notice of Termination as your contract requires. Your agent will help you follow the notice provisions.
- Timing is critical. Your notice must be delivered before the option deadline expires.
- If you terminate properly within the window, you generally receive your earnest money back. The seller usually keeps the option fee.
Typical timelines and costs in Mansfield
How long is the option period?
In many Texas deals, you will see 3 to 10 days. Five days is common for inspections. In competitive situations, buyers may shorten it to 1 to 3 days, or in rare cases waive it to strengthen an offer.
What does the option fee look like?
Option fees are negotiated. You will often see about 100 to 500 dollars. In multiple-offer scenarios, buyers sometimes offer a larger option fee, such as 500 to 2,000 dollars, to show commitment while keeping the right to terminate. If you close, this fee is typically credited back to you.
Earnest money basics
Earnest money is usually a larger amount than the option fee. Local norms vary by price point. Ask your agent what is typical for your target neighborhood and price range.
Competitive offer tactics
- Shorten the option period to reduce seller uncertainty.
- Offer a larger option fee to signal strength while preserving your rights.
- Waive the option period only if you understand the risk and have another strategy to assess condition.
- Combine tactics: a short option period plus strong earnest money can make your offer more compelling without giving up all protections.
Extending the option period
If you need more time, ask the seller for a written extension before the deadline. Expect to pay an additional option fee. If the deadline passes without an extension, the unconditional right to terminate under the option generally ends.
Inspections to schedule right away
The option period is your time to investigate. Most buyers order inspections immediately after the contract is accepted so reports arrive within the window. For consumer-friendly guidance, review Texas REALTORS consumer resources.
Recommended inspections and reviews for Mansfield area homes:
- General home inspection for structure and major systems
- Foundation or structural evaluation, especially with North Texas clay soils
- Roof inspection for age and storm or hail damage
- HVAC, plumbing, and electrical systems
- Wood-destroying insect inspection
- Sewer scope, especially for older homes or signs of slow drains
- Pool inspection, if applicable
- Well water testing or septic inspection for outlying properties
- HOA resale package and documents for rules, dues, and any special assessments
A 5-day option period game plan
- Day 0: Contract accepted. Pay and deliver option fee and earnest money per contract instructions. Your agent books inspections immediately.
- Days 1 to 3: Inspectors complete work and deliver reports, often within 24 to 48 hours.
- Days 3 to 4: You and your agent review findings and decide whether to request repairs, seek a credit, or terminate.
- By Day 5: Deliver your written Notice of Termination before the deadline if you are cancelling. Otherwise, send a written repair request or amendment and proceed.
- Need more time: Request a written extension and expect to pay an added option fee.
Repair negotiations 101
- Put repair requests or credit requests in writing using the proper amendment form.
- The seller can agree, counter, or refuse. If you are still within the option period and cannot reach agreement, you can terminate by written notice before the deadline.
- If the seller agrees to repairs, they are usually completed by licensed professionals before closing or handled with a credit at closing.
Local risks to watch in Mansfield
- Foundation and soil movement: North Texas clays can shift. Consider a structural engineer or foundation specialist if you see cracks or sticking doors.
- Roof age and hail history: Severe storms are part of the region’s weather. Ask about roof age and insurance claims.
- Drainage and flood risk: Use the FEMA Flood Map Service Center to review flood zones and insurance needs.
- HOA rules and fees: Many subdivisions have HOAs. Review the resale certificate and bylaws during the option period.
- City records and permits: Check the City of Mansfield for permits or code questions, especially if you see recent renovations or additions.
- Title and records: For deed and recording questions, visit the Tarrant County Clerk. For property tax information, see the Tarrant Appraisal District.
Quick checklist for Mansfield buyers
- Pay the option fee and deposit earnest money as the contract requires.
- Schedule core inspections within 24 to 48 hours of going under contract.
- Add specialty inspections as needed: foundation, sewer scope, pool, well, septic.
- Request the HOA resale package and read it closely.
- Compare inspection findings to the seller’s disclosures.
- Decide on repairs, credits, or termination before the option deadline.
- If needed, negotiate a written extension with an additional option fee.
When to consider waiving or shortening
Shortening the option period can strengthen your offer while keeping some flexibility. Only waive the option period if you fully accept the risk. If you must compete hard, consider these alternatives:
- Keep a short option window but offer a higher option fee
- Pay for a pre-offer inspection if the seller allows access
- Ask for a seller credit or a home warranty in lieu of repairs
- Increase earnest money to show commitment while preserving inspection time
Ready to move with confidence?
You deserve a smooth, informed path from offer to closing. If you want a tailored strategy for your home search and a step-by-step plan for your option period, reach out to the Donna and Gail Team. We will help you schedule inspections fast, negotiate clearly, and protect your interests every step of the way. Connect with Donna Jobe to get started.
FAQs
What is the option period in a Texas home purchase?
- It is a negotiated window that gives you the unconditional right to terminate for any reason by written notice before the deadline, as provided in TREC contract forms.
How do option fee and earnest money differ in Texas?
- The option fee pays for your right to terminate and is usually nonrefundable but credited at closing, while earnest money is a separate deposit typically returned if you terminate on time.
What inspections should Mansfield buyers prioritize during the option period?
- Start with a general home inspection, then add foundation, roof, HVAC, plumbing, electrical, WDI, and specialty checks like sewer scope or pool as the property requires.
Can I get my earnest money back if I terminate during the option period?
- Yes, if you deliver proper written notice before the deadline under the contract, you generally receive your earnest money back.
How fast should I schedule inspections with a 3 to 5 day option period?
- Book inspectors immediately after acceptance so you receive reports within 24 to 48 hours and have time to review and negotiate.
Is waiving the option period a good idea in Mansfield’s competitive market?
- It can make an offer stronger but increases risk; many buyers choose a short option period and a higher option fee instead of a full waiver.
