How Do Option Periods and Inspections Work in Texas?

What the option period gives the buyer

• The right to inspect. Buyers schedule a professional home inspection, plus any specialists they need, like a roofer or plumber.
• The right to walk away. Within the option period, a Texas buyer can terminate the contract for essentially any reason and keep their earnest money.
• Room to negotiate. Based on what the inspection finds, buyers can ask for repairs, a credit or a lower price before the option period ends.
• More time if both sides agree. If a big item like the roof needs more review, the buyer and seller can agree to extend the option period.

The 5 big things to focus on in an inspection

Every inspection report has a long list of items. These five are the ones that can be the most expensive, so they're where I help my buyers focus. Learn more about foundation problems in North Texas.

Roofs are the #1 negotiation right now

The most common inspection item I'm negotiating right now is the roof. When the inspector flags it, here's what usually happens:

1. We bring in an outside roofer to take a closer look and give a professional opinion.
2. Insurance may get involved to see if the damage could be covered by a claim.
3. We extend the option period if needed, so there's enough time to get the roof negotiated before the buyer has to decide.

Plumbing and the age of the home

One big item I always watch is plumbing, especially in older homes. DFW has plenty of established neighborhoods, and homes built in the 1980s or earlier may have cast iron pipes.

Cast iron pipes typically last around 50 to 60 years. If a home still has them, the plumbing is likely going to need to be replaced soon, and replacing all of the plumbing can cost $30,000 to $50,000 or more. For an older home, a plumber's inspection with a camera scope of the drain lines is money well spent.

"Not up to code" doesn't always mean it gets replaced

Inspection reports often list lots of little items that are "not up to code." Building codes change over time, so an older item can be listed even when it works perfectly.

Here's an example. Say I put in a new water heater, and the next day the code changes. My water heater still works correctly and I have hot water, so I'm not going to replace it. In the same way, if an item is functioning as intended and isn't a safety hazard, most sellers won't replace it just because the code has changed.

That's why I help my buyers focus their repair requests on the items that matter most: safety concerns and the five big systems above.

What sellers should know

As the seller, your main job during the option period is to provide access for inspections and respond to any repair requests. The option fee is a small, separate payment to the seller for taking the home off the market during this window.

Expect questions about the roof and the big systems. If you know your roof is getting older, getting ahead of it before you list can make negotiations go much more smoothly. Learn more about how I guide sellers from contract to closing.

What happens after the option period ends

Once the option period ends without the buyer terminating, the buyer is generally committed to moving forward, subject to any financing and appraisal terms still in the contract, and the sale moves toward closing. The good news is that right now, most buyers and sellers are able to negotiate their way through inspections and get the deal done.