Wondering how much time you really have to inspect a Kerrville home after your offer is accepted? The Texas option period gives you a short window to investigate and decide, without risking your earnest money. If you are buying in the Hill Country, using this time well can save you stress, money, and surprises. In this guide, you will learn how the option period works in Texas, what to expect in Kerrville, and the smart steps to take from day one. Let’s dive in.
What the Texas option period is
In Texas, most resale contracts include a negotiated “Termination Option,” often called the option period. You pay a small option fee to the seller for the unrestricted right to terminate the contract within a set number of days. If you terminate within that window, your earnest money is returned under the contract terms, and the seller keeps the option fee.
The option period is created by the language in the purchase contract, typically the TREC One to Four Family Residential Contract (Resale). The number of days, the amount of the option fee, and when and how you deliver funds are all negotiable and must be filled in on the contract.
It helps to separate two payments:
- Option fee: A small, nonrefundable payment paid to the seller in exchange for your termination right during the option period.
- Earnest money: A larger deposit held in escrow by the named title company or escrow agent. It applies to your closing costs or is refunded if you validly terminate under the contract.
To terminate, you must deliver written notice as the contract requires before the deadline. The option period can be extended only if both parties sign an amendment. There is no automatic extension.
How the timeline works in Kerrville
Across Texas, option periods commonly range from 3 to 10 calendar days. In major metros, you sometimes see shorter periods or even waived options. In Kerrville and the Hill Country, buyers more often negotiate the middle of that range so there is enough time to handle inspections typical for rural or acreage properties.
The option period usually starts on the contract’s effective date, which is the date the last party signs. You typically count calendar days unless the contract states otherwise. The contract also sets when the option fee and earnest money are due, so enter those dates carefully and plan to meet them early.
Local conditions matter. Sellers in Kerrville may favor a shorter period with a stronger option fee, but there is no universal rule. Your final terms should reflect the property type, your inspection needs, and the seller’s priorities.
What to do during your option period
The goal is simple: verify the home’s condition and risks, then decide whether to proceed, negotiate, or terminate.
A practical day-by-day checklist
Day 0–1 (effective date)
- Deliver the option fee and earnest money per the contract.
- Schedule your general home inspection right away.
- Coordinate with your lender on appraisal and any lender-required inspections.
Day 1–3
- Complete the general home inspection.
- Order specialized inspections based on what you learn and the property type.
- Request HOA documents if applicable and begin reviewing restrictions.
Day 3–6
- Review inspection reports with your inspector.
- Prioritize health, safety, and major systems.
- Decide whether to request repairs, seek a credit, accept as-is, or terminate.
Before the option deadline
- If terminating, deliver written notice per the contract before time runs out.
- If negotiating, send the repair amendment and keep communication clear and timely.
Hill Country inspections to prioritize
For Kerrville-area homes and land, consider these checks during the option period:
- General home inspection for structure, roof, HVAC, plumbing, and electrical.
- Termite and wood-destroying insect inspection.
- Septic system inspection and certification for properties not on city sewer.
- Well testing and well pump evaluation for properties with private wells.
- Foundation review mindful of local limestone and soil conditions.
- Roof and attic evaluation.
- HVAC, chimney, and pool inspections if present.
- Survey review and boundary check, especially for acreage, easements, and fences.
- Floodplain review using available mapping and local ordinances.
- Title review for mineral rights or surface-use concerns; seek legal advice if needed.
Title, surveys, and rural considerations
During or shortly after the option period starts, you or your agent will receive the title commitment from the title company. Review the exceptions and any recorded easements. In Kerr County, you can also review deeds and plats through county records and confirm parcel data with the appraisal district. If you are buying acreage, pay close attention to access, boundary lines, and any recorded restrictions.
Mineral rights may be severed from the surface rights in Texas. If minerals are a concern, review the title documents carefully and consult with the title company. For complex issues, many buyers consult an attorney. The option period is the right time to surface and address these items.
Smart strategies to reduce risk and win the deal
- Balance speed with protection. Offer the shortest option period that still allows you to complete essential inspections. Do not cut so short that you cannot test septic or well systems if needed.
- Use a strategic option fee. A higher option fee signals serious intent while preserving your right to walk away if inspections reveal issues. Many buyers use a range that matches local conditions and price point.
- Try a two-tier approach. Start with a shorter option period and, if inspections identify items that need specialty tests, request a brief extension in exchange for a higher option fee or price adjustment.
- Pre-inspect when feasible. If a pre-offer walk-through with an inspector is possible, you can shorten or even waive the option period with more confidence. Only waive if you fully accept the property as-is.
- Move fast on logistics. Schedule inspectors who know Hill Country systems. Share proof of funds or preapproval to reduce seller concerns about delays.
- Negotiate with purpose. Focus on health, safety, and major systems. For older but functional components, consider credits instead of full replacements by the seller.
Common mistakes to avoid
- Missing the option fee deadline or delivering it to the wrong party. Get a receipt.
- Waiting to schedule inspections, then running out of time for follow-up tests.
- Letting the option expire without a decision while negotiations stall.
- Sending vague or verbal repair requests. Use the proper contract amendments and keep everything in writing.
- Assuming the lender’s appraisal or repair requirements are tied to the option period. These are separate timelines.
- Accepting repairs without verifying completion before the option period ends.
Sample timelines for Kerrville buyers
- In-town single-family home: 5 to 7 days can work if inspectors are available quickly and there is no septic or well.
- Acreage or rural property with well and septic: 7 to 10 days is often more realistic to allow specialty inspections and a thorough survey review.
Your actual timing depends on inspector availability, property complexity, and what you and the seller negotiate in the contract.
Next steps for a confident purchase
The option period is your safety net. Use it to confirm condition, align expectations, and either proceed with confidence or pivot without risking your earnest money. If you plan ahead, communicate clearly, and focus on key inspections common to the Hill Country, you can protect yourself and still present a competitive offer.
Have questions about the right option fee or timeline for a Kerrville property you love? Reach out to Samantha Zamora for local guidance tailored to your goals.
FAQs
What is the Texas option period in a home purchase?
- It is a negotiated window in the contract where you pay an option fee for the unrestricted right to terminate, and if you do so on time, your earnest money is returned per the contract.
How do option fee and earnest money differ in Texas?
- The option fee is a small, nonrefundable payment to the seller for your termination right, while earnest money is held in escrow and applied to closing or refunded if you validly terminate.
When does the option period start and how are days counted?
- It usually starts on the contract’s effective date, and you count calendar days unless the contract specifies otherwise.
Can I extend my option period in Kerrville?
- Yes, but only by written agreement signed by both parties; you cannot extend it unilaterally.
What inspections should Kerrville buyers prioritize during the option period?
- In addition to a general inspection, consider termite, septic, well testing, roof, foundation, and a survey review, with floodplain and mineral rights checks as needed.
What happens to my money if I terminate during the option period?
- The seller keeps the option fee, and your earnest money is typically returned if you give proper written notice within the deadline as the contract requires.
How does the option period relate to appraisal or loan requirements?
- The option period is separate; lenders may have appraisal or repair conditions on their own timelines outside the option period.
