Buying a home in Kilgore is exciting, but the days right after your offer is accepted can feel intense. You want to make smart decisions fast, protect your budget, and avoid surprises. The Texas option period is designed for exactly that. In this guide, you’ll learn what the option period is, how it works in Kilgore, what to do during it, and how to use it to your advantage. Let’s dive in.
What the Texas option period means
In Texas, most resale home purchases use the standard TREC One to Four Family Residential Contract. When included in the contract, the option period gives you an unconditional right to terminate the contract for any reason within a short, negotiated window after the contract is executed. You do not have to state a reason to terminate during this period. If you do terminate on time and in writing, the contract ends.
Two terms matter here:
- Option fee: a separate, typically nonrefundable fee you pay the seller for this right. If you close, it is usually credited to you at closing.
- Earnest money: a good-faith deposit held by the title company. It is not the same as the option fee and follows different rules if the contract ends.
The option period is time limited. If you want to cancel, you must give written notice before the deadline. If you do not terminate within that window and later try to cancel because of an inspection issue, your options depend on the contract. You could risk your earnest money if you breach after the option ends.
How it works in Kilgore (Gregg County)
Option periods are negotiated. In many Texas markets, you will see windows ranging from about 3 to 10 days, but local practice shifts with market conditions. In a competitive moment, sellers may want a shorter period or even ask buyers to waive it. In a slower market, buyers often secure a little more time.
Option fees are also negotiable. The amount often reflects how competitive the situation is. Because norms change, ask your local agent what recent Kilgore contracts are showing for both length and fee.
A simple timeline example
- Day 0: Contract is executed. The clock starts.
- Day 1: You pay the option fee as the contract requires. You also deposit earnest money with the title company per the contract.
- Days 1 to 3: You schedule and complete the general home inspection and any priority specialty inspections.
- Days 3 to 5: You gather bids or repair opinions, review disclosures, and review the title commitment and survey.
- Before the deadline: You decide to proceed as-is, negotiate repairs or credits, or terminate by written notice within the option period.
Option fee and earnest money basics
If you terminate during the option period, the seller usually keeps the option fee. Earnest money follows the contract’s termination and escrow terms. If you close, the option fee is typically credited to you at closing.
What to do during your option period
Your option period is your chance to learn everything that could change your decision or your offer terms. Move quickly so you have time to respond.
Schedule inspections in the first 48 to 72 hours
- General home inspection: your baseline for structure, roof, HVAC, electrical, and plumbing.
- Roof inspection: helpful if age or condition is uncertain.
- Termite and wood-destroying insect inspection: common in East Texas.
- Foundation or structural specialist: important if you see cracks, doors that stick, or uneven floors.
- HVAC service check: useful if the system is older.
- Septic inspection and pump records: if the property is on septic.
- Well water testing: if there is a private well. Test for bacteria and common minerals.
- Specialized inspections as needed: mold, asbestos or lead-based paint in older homes, radon if you have concerns, or underground storage tanks for some rural or former commercial sites.
Review disclosures, survey, and title
- Seller’s disclosure: read carefully and compare to inspection findings.
- Survey: confirm boundaries, improvements, and easements. If no survey exists, decide if you will order one.
- Title commitment: review exceptions and ask questions about easements, restrictions, liens, and mineral severances. Clarify what mineral rights convey.
- HOA or POA documents: if applicable, review rules, fees, and any pending assessments.
- Property taxes: check status and exemptions with the Gregg County Appraisal District and the tax office.
Kilgore-specific checks buyers should consider
- East Texas soils and foundations: expansive clays can cause movement. If you see signs of settlement, get a foundation opinion.
- Drainage and grading: heavy rains can expose drainage issues. Walk the lot and look for standing water or gutter problems.
- Floodplain: verify any FEMA flood zone and whether flood insurance is required or recommended.
- Septic and wells: some Kilgore-area properties use septic systems or private wells. Order proper inspections and water testing if applicable.
- Wood-destroying insects: plan a licensed pest inspection.
- Mineral rights and oil and gas history: this is East Texas oil country. Determine if mineral rights are severed, and ask the title company to explain surface use or production history noted in the title commitment.
- Public records: consult the Gregg County Clerk for deed records, easements, and restrictions. Confirm tax history with the appraisal district.
Turning findings into decisions
During the option period you can act in three main ways. You can terminate by written notice, negotiate repairs or credits, or proceed as-is. Because the option gives you an unrestricted right to terminate, this is the safest time to walk away if you discover deal-breakers.
If you want repairs or credits, submit a clear written request within the timeline. The seller can accept, counter, or decline. If the response does not work for you, you can still terminate within the option window.
Timing and communication tips
- Book inspectors immediately. Schedules can fill quickly, and you may need time for repair bids.
- Keep all key notices in writing to preserve your timelines. Use email or contract forms.
- Know your deadline. Plan to finish your decision at least one business day early, if possible.
Costs to plan for
Option fees and inspection costs vary. Expect to pay for a general inspection and, if needed, specialty inspections such as foundation, termite, septic, or well testing. Survey and title-related fees depend on what you and the seller negotiate in the contract. Repair costs or credits depend on what your inspections uncover and your final agreement with the seller.
Because option fee norms change with the market, ask your local agent for recent Kilgore examples before you write your offer.
Strategy in different market conditions
Your option strategy should match the market and your risk tolerance.
If it is a buyers’ market
- Ask for a longer option period for thorough due diligence.
- Keep the option fee reasonable.
- Use the time to get multiple repair bids so your request is well-supported.
If it is a seller’s market
- Expect shorter option periods or higher option fees.
- Consider targeted pre-offer checks for high-risk items when feasible.
- Use other terms like strong earnest money or an escalation clause to stay competitive while keeping an option window.
Smart compromises
- Offer a larger option fee in exchange for a slightly longer period.
- Keep a shorter option window for the general inspection and plan any specialty checks quickly.
- Budget a contingency for repairs if the option window must be brief.
Quick Kilgore buyer checklist
- Confirm the option period length and option fee in your contract.
- Pay the option fee promptly as the contract requires.
- Schedule the general inspection immediately. Add specialty inspections as indicated.
- Request seller disclosures, HOA documents, and recent utility information.
- Order or review the survey. Check boundaries, improvements, and easements.
- Review the title commitment and any mineral-rights notes with the title company or an attorney.
- Decide to proceed, negotiate, or terminate before the option deadline. Deliver any termination in writing per the contract.
Common pitfalls to avoid
- Waiting to schedule inspections. You can lose precious days and rush decisions.
- Assuming the option fee and earnest money are the same. They are different and follow different rules.
- Missing the written notice requirement. A verbal “we are out” is not enough.
- Overlooking flood risk, drainage, or foundation movement common in East Texas.
- Ignoring mineral-rights issues. Ask early what conveys and what surface rights may exist.
When to ask for help
Use a local, reputable title company for your closing and title review. If your title commitment mentions mineral severances or complex easements, consult an attorney. For inspection decisions and negotiation strategy, lean on a local agent who knows Kilgore’s norms and vendor timelines.
If you want a responsive, East Texas–savvy advocate to help you plan your option strategy, inspections, and negotiation in Kilgore, reach out. Let’s make this process clear and low stress.
Ready to talk through your plan and timeline? Schedule a Free Consultation with Brittany Sartain.
FAQs
What is the Texas option period in a home purchase?
- It is a negotiated window after contract execution that gives you the unconditional right to terminate the contract for any reason by timely written notice.
How are option fee and earnest money different for Kilgore buyers?
- The option fee pays for your termination right and is usually nonrefundable if you cancel. Earnest money is a good-faith deposit held by the title company with different rules if the contract ends.
How long is a typical option period in Kilgore?
- Option periods are negotiated and change with market conditions. In Texas, 3 to 10 days is commonly seen, but ask your agent for current local norms.
What should I do during the option period in Kilgore?
- Schedule inspections quickly, review disclosures, survey, and the title commitment, check for flood and drainage risks, and decide to proceed, negotiate, or terminate before the deadline.
Can I terminate for any reason during the option period?
- Yes, if the option provision is in your contract, you can terminate for any reason by providing written notice within the option period deadline.
