Feeling unsure about what the Texas option period really does for you as a McKinney buyer? You’re not alone. This short window can be the most powerful protection in your contract, but only if you use it well. In this guide, you’ll learn what the option period is, local timelines and fees, smart negotiation moves, and a practical checklist and timeline tailored to McKinney and Collin County. Let’s dive in.
The option period, explained
What it is
The option period is a buyer-paid, short window in the standard TREC purchase contract that gives you an unrestricted right to terminate for any reason by delivering written notice within the agreed days. You’ll find the details in the TREC One to Four Family Residential Contract (Resale).
Option fee and credits
You pay an option fee to the seller for this right. If you terminate during the option period, the fee is typically nonrefundable. If you do not terminate and close, the fee is generally credited to you at closing, as outlined in the TREC contract.
How you end the contract
To terminate, you must deliver written notice to the seller within the option period. Delivery methods follow the contract, so confirm how notices must be sent. If you terminate on time, you usually lose only the option fee and are released from the contract, subject to other contract terms.
How it differs from other deadlines
The option period is separate from financing or appraisal protections and from earnest money rules. Financing and appraisal are addressed under different paragraphs and timelines. The option period is an extra layer of protection that lets you exit for any reason within that window.
Timelines and fees in McKinney
Typical length and day counting
In McKinney and broader Collin County, option periods commonly range from 3 to 10 calendar days. A 7-day period is a frequent starting point. Texas contracts generally count in calendar days unless stated otherwise. The effective date in the TREC contract starts the clock, so confirm how Day 0 and Day 1 are defined in your signed agreement.
Typical option fees
Local practice often sees option fees between about $100 and $500. In competitive situations, buyers sometimes offer a higher fee to strengthen an offer. For older or more complex homes, a longer option period with a meaningful fee can help you complete specialty inspections.
Inspections and earnest money
You’ll usually book a general inspector within 24 to 48 hours of acceptance so the report arrives well before the deadline. Specialty inspections like roof, foundation, HVAC, sewer scope, or pool may require extra lead time. Earnest money and the option fee are separate. Earnest money is held in escrow under its own rules, while the option fee is consideration for your termination right.
Strategies to win and protect
Make a stronger offer
- Increase the option fee while keeping a standard period. A higher fee with a 7-day option can be more attractive than a low fee with a long period.
- Shorten the option period to 3 to 5 days in competitive situations and have your inspector ready to go on Day 1.
- Use a split approach. Start with a short option and negotiate the ability to extend by paying an additional fee via amendment if you need more time for specialists.
- Consider seller pre-inspections. If a seller shares a current, credible report, it may support a shorter option period.
Negotiate repairs with clarity
- After inspections, deliver a focused, written request for repairs or credits. Keep the requests tied to major items that affect safety, structure, or systems.
- Use repair caps to streamline negotiations. For example, ask for a credit up to a clear dollar limit to avoid back-and-forth over smaller items.
When to consider waiving
Waiving the option removes your easy off-ramp. It is usually considered only when you have recent inspections, new or newly renovated construction, or a very competitive situation. If you waive, be ready to proceed despite repair risk, and rely on other contract protections for financing and appraisal.
Your option period checklist
- Hire a general home inspector immediately. Ask for quick report turnaround.
- Order specialty inspections if needed: foundation, roof, HVAC, sewer scope, pest, pool, or mold, based on what your general inspection suggests.
- Review seller disclosures and permit history. Check City of McKinney records for past work and compliance.
- Confirm HOA documents if applicable. Review bylaws, assessments, and rules to ensure the home fits your needs.
- Coordinate with your lender to keep appraisal and loan milestones on track.
- Draft your repair or credit requests by Day 5 or 6 so your agent can deliver on time.
For general guidance about inspectors and the inspection process, visit the TREC consumer page for Real Estate Inspectors.
7-day sample timeline
- Day 0 (Effective Date): Contract accepted. Pay the option fee per contract and submit earnest money per escrow instructions. Book your general inspection for Day 1 or Day 2.
- Day 1–2: Complete the general inspection. Order specialty inspections if recommended. Ask for quick reports.
- Day 3–5: Review all reports. If needed, request contractor estimates for major items.
- Day 6: Finalize your written repair or credit request with your agent. Decide whether to proceed or terminate.
- Day 7 (before the deadline): Deliver written termination if you are exiting, or deliver your amendment if you are negotiating repairs or credits. If you take no action, your unrestricted right to terminate ends.
McKinney buyer tips and resources
- Market pulse: In Collin County, entry and mid-price segments can be competitive, which may push buyers toward shorter options or higher fees. Higher-end segments may allow longer options and more negotiation. Align your strategy with current neighborhood data.
- Common inspection focus: In our area, HVAC performance, roof condition after hail, slab and foundation movement, drainage and grading, plumbing materials, and pool systems deserve close attention. Choose inspectors familiar with Collin County homes.
- Property taxes and assessments: Use the Collin County Appraisal District property search to review current tax records and exemptions.
- Permits and records: Visit the City of McKinney’s website for permit and inspection information, and confirm whether past work was permitted. Start at the City of McKinney site and navigate to Building Inspections.
- Primary contract reference: Review the TREC One to Four Family Residential Contract (Resale) for option fee, timelines, and notice delivery details.
A well-planned option period gives you the confidence to move forward or walk away on your terms. If you want a calm, strategic process with fast inspections, clear negotiations, and trusted local vendors, connect with Patricia Weidler for concierge-level guidance in McKinney and northern Collin County.
FAQs
What is the Texas option period in a home purchase?
- It’s a short, buyer-paid window in the TREC contract that gives you an unrestricted right to terminate by delivering written notice within the agreed days.
Do I lose earnest money if I terminate during the option period?
- You typically forfeit the option fee, but your earnest money is returned per the contract’s escrow and termination provisions.
Can I extend my option period in McKinney?
- Yes. Extensions are often negotiated by amendment in exchange for an additional option fee, if the seller agrees.
Does the option period cover financing or appraisal issues?
- No. Financing and appraisal protections are handled by other contract paragraphs and timelines, separate from the option period.
