Buying a home in Georgetown comes with a new term you want to get right from day one: the option period. This short window can make the difference between a confident purchase and a stressful one. If you use it well, you can inspect, negotiate, or walk away without losing your earnest money. If you miss a deadline, you could give up key protections.
In this guide, you will learn what the option period is, how it works in Texas contracts, the typical timelines and fees in Georgetown, which inspections to prioritize, and how to handle repair negotiations. You will also get a practical 7‑day plan you can follow. Let’s dive in.
What the option period means
The option period is a negotiated window in your Texas purchase contract when you can terminate for any reason. You pay an option fee to the seller for this right. The fee is generally non‑refundable. If you properly terminate within the option period, your earnest money is usually refundable under the contract terms.
Why it matters: this is your time to do inspections, review title and HOA documents, confirm financing, and evaluate the property without being locked in. If you are not satisfied and you give written notice before the deadline, you can exit the deal with minimal cost beyond the option fee.
Key points to remember:
- The option period must be written into your contract with a clear deadline.
- Termination must be delivered in writing before the option deadline.
- If you miss the deadline and try to back out later, you may lose your earnest money and face other contract remedies.
How the option period works in Texas contracts
In the standard One‑to‑Four Family Residential Contract (Resale), the option period shows as a specific number of calendar days. It starts on the effective date unless stated otherwise. You also agree on an option fee amount. You typically pay the fee at or shortly after the contract is executed, often through the title company.
Important reminders:
- The option period only affects your right to terminate. Other deadlines like loan approval and closing still apply unless amended in writing.
- Delivery rules for notices matter. Follow the contact and delivery provisions in your contract.
Typical timelines and fees in Georgetown
Every market moves a bit differently, but here are common ranges in Texas and what you can expect in Georgetown:
- Length: 3 to 10 days is typical in Texas. A 7‑day option period is common in many offers.
- Fees: About 100 to 300 dollars is a frequent range for standard transactions. In a competitive situation, the option fee can be higher, even 1,000 dollars or more.
- Market shifts: In a seller’s market with multiple offers, buyers often shorten the option period or raise the option fee to stand out. In a balanced or buyer’s market, you may secure 7 to 10 days for deeper inspections and contractor bids.
Practical tip: Ask your local buyer’s agent about current norms in Georgetown and Williamson County. If you know you need specialty inspections, request a longer option period up front and be ready to explain why in your offer.
What to do during the option period
The best strategy is to schedule critical inspections on day 1. That gives you enough time to follow up with specialists, gather bids, and make a clear decision before the deadline.
Schedule these core inspections first
- General home inspection by a licensed residential inspector. This covers structure, roof, major systems, and visible defects.
- Wood‑destroying insect inspection, often called a termite report. This can detect active activity or prior damage.
- Roof inspection if your general inspection does not cover it in depth.
Foundation and structure in Central Texas
Georgetown sits on expansive clay soils that can move with moisture changes. That can lead to settlement or cracking over time. If your general inspection flags movement, cracks, or drainage issues, bring in a structural engineer or qualified specialist. This is a common and smart step in our region.
Water, sewer, and septic
- Sewer scope: Use a camera inspection to check for blockages or damage in older sewer lines.
- Well systems: If the property is on a private well, test water quality and inspect the pump and pressure equipment.
- Septic systems: Order a professional septic inspection. Pumping and a tank check can confirm condition and capacity.
HVAC, electrical, and plumbing
- HVAC: Check performance, age, and service history.
- Electrical: Confirm capacity, breaker panel condition, and any outdated or unsafe wiring.
- Plumbing: Look for leaks, water heater age and function, and pipe materials that may need updating.
Environmental and specialty checks
- Flood and drainage: Review flood layers and nearby waterways like the San Gabriel River or Lake Georgetown. Drainage patterns on site are also important.
- Mold testing: Consider if you see visible mold or chronic moisture.
- Radon: Risk is generally lower in Texas, but testing is available if you want added peace of mind.
- Asbestos and lead paint: Consider for homes built before 1978 or when renovations expose suspect materials.
- Pool and spa: Order a dedicated pool inspection when present.
- HOA and condo documents: Order resale packages early. Review rules, fees, budgets, and reserves.
Local checks for Georgetown
- Historic areas: If you are considering a home near the historic district, review rules for exterior changes and any preservation requirements.
- Utilities: Confirm if the property is on municipal water and sewer or private systems. Private systems require more testing and maintenance planning.
- Permits and tax items: Review permit history for past additions and check recent property tax bills and notices.
How to negotiate repairs and credits
Once your inspections come in, you have options. What you choose depends on the severity and cost of the issues, your lender’s requirements, and your comfort level.
Common paths:
- Ask the seller to complete specific repairs before closing.
- Request a credit at closing or a price reduction instead of repairs.
- Request a warranty or an escrow holdback for major items.
- Terminate within the option period if the defects or costs are unacceptable.
What to prioritize
- Safety and code items first. Think electrical hazards, gas leaks, or serious structural concerns.
- Major systems next. Foundation, roof, plumbing failures, and HVAC issues can carry high costs.
- Financing and insurance items. Lenders and insurers can decline coverage or approval if serious defects remain.
- Cosmetic items last. Paint and small trim items are often better to accept rather than risking a deal over minor issues.
Tactics that work
- Get bids during the option period. Sellers take requests more seriously when you provide written estimates.
- Keep your list concise and focused on high‑impact items. Pair the list with a reasonable credit request or targeted repairs.
- Clarify whether you want repairs completed or a credit. Many sellers prefer credits to avoid scheduling and liability.
- Put everything in writing using the correct contract forms. Verbal agreements do not protect you.
- If talks extend beyond your deadline, ask about extending the option period in writing. Expect to pay an additional option fee for extra time.
How sellers often respond
Sellers might agree to everything, split the difference with a credit, choose a few repairs, or decline repairs and proceed as‑is. Your agent can help you weigh the value of each response against the inspection findings and your goals.
A simple 7‑day option period plan
Adapt this to your actual deadline. The goal is to front‑load inspections and give yourself enough time for bids and decisions.
- Day 0: Pay the option fee and earnest money. Confirm the exact deadline and time in writing and calendar it.
- Day 1: Schedule the general home inspection, WDI inspection, and any immediate specialist checks like roof or HVAC. Order HOA documents and, if needed, well and septic inspections.
- Days 2 to 3: Review reports, identify red flags, and schedule follow‑ups such as a structural engineer or sewer scope.
- Days 4 to 5: Gather contractor bids for major items like foundation, roof, or HVAC. Create a prioritized repair or credit request list. Discuss any lender or insurance concerns.
- Day 6: Deliver your repair or credit request in writing using the proper form. Begin negotiations.
- Day 7: Decide and act before the deadline. Proceed with the contract, terminate in writing, or sign an option extension with an added fee if both parties agree.
Key reminders:
- Delivery method and timing count. Follow your contract’s notice rules.
- Keep copies of all reports, bids, and written notices.
- If you miss the deadline, you may lose your right to terminate and risk your earnest money.
Common mistakes to avoid
- Starting inspections late. You need day 1 to hit the ground running.
- Asking for too many minor items. Focus your leverage on safety, structure, and big‑ticket systems.
- Relying on verbal promises. Put every agreement in writing on the correct form.
- Ignoring local risks. In Georgetown, soil movement and drainage deserve extra attention.
- Missing the notice window. Termination must be delivered in writing before the deadline to be effective.
Should you shorten or waive the option period
A short option period or a higher option fee can strengthen your offer in a competitive situation. Waiving the option period can also make an offer stand out, but it removes your built‑in safety net. Before you make that call, talk with your agent about current Georgetown conditions, your comfort with risk, and the property’s age and condition. A balanced approach is often best, such as a shorter window with inspections scheduled immediately.
Final thoughts and next steps
Your option period is your time to verify, negotiate, and decide. Use it well, and you protect your money and your peace of mind. With a clear plan, fast scheduling, and an agent who knows Georgetown’s soils, drainage, utilities, and contract timelines, you can move forward with confidence.
If you want step‑by‑step guidance from a local, bilingual advisor who puts your needs first, reach out to Vivian Mussi. Let’s connect, set your plan, and make your Georgetown purchase a smooth success.
FAQs
What is the Texas option period in a home purchase
- It is a negotiated window, usually several days, when you can terminate for any reason by paying a non‑refundable option fee. If you terminate in time and follow the notice rules, your earnest money is typically refundable.
How long is a normal option period in Georgetown, TX
- In Texas, 3 to 10 days is common and 7 days is a frequent example. In a hot market, buyers may offer shorter periods. In a calmer market, 7 to 10 days may be accepted.
How much is the option fee and is it refundable
- Many standard transactions use 100 to 300 dollars, but fees can be higher in a competitive situation. The option fee is generally non‑refundable. It pays for your right to terminate.
Which inspections should I prioritize during the option period
- Start with a general home inspection and a wood‑destroying insect inspection. In Georgetown, pay close attention to foundation and drainage. Add roof, HVAC, sewer scope, and well or septic checks as needed.
Can I extend the option period if I need more time
- Yes, but only if the seller agrees in writing. Expect to pay an additional option fee for the extension and make sure the amendment is signed before your current deadline.
What happens if I miss the option deadline without giving notice
- You may lose the right to terminate under the option clause and risk your earnest money if you later try to back out. This is why written notices and strict timing are essential.
Should I waive the option period to win a multiple‑offer situation
- Waiving can make an offer stronger but removes a key safeguard. Consider a shorter option period with inspections booked on day 1 instead. Talk with your agent about the property and market conditions before deciding.
