What happens to your money once your offer is accepted on a home in Copperfield or Oakmont? If you are like most Bryan buyers, you want your offer to stand out without risking more than you have to. Understanding earnest money and the Texas option period helps you do both with confidence. In this guide, you will learn what earnest money is, how it works under Texas contracts, typical amounts in Bryan’s neighborhoods, and the exact steps to protect your funds while keeping your offer competitive. Let’s dive in.
Earnest money vs. option fee
Earnest money is a buyer-paid deposit that shows you are serious about purchasing. It is typically held by a title company or other agreed escrow agent. If you close, it is credited toward your purchase. If the deal ends, whether it is returned or forfeited depends on your contract rights.
Texas also uses an option fee and option period. The option fee is a separate, typically small, non-refundable payment that secures your unrestricted right to terminate within the agreed option period. If you close, the option fee is usually credited to you at closing. If you terminate during the option period, you generally lose only the option fee, and your earnest money is returned according to the contract.
The key difference is this: earnest money is part of the contract and is conditional, while the option fee buys you an unconditional right to walk away during the option period.
How Texas contracts handle these funds
Most Texas resale homes use the standard Texas Real Estate Commission form known as the One to Four Family Residential Contract. Its paragraphs spell out how and when funds must be delivered, where they are held, and what happens if either party defaults. To see more on contract standards, review the Texas Real Estate Commission resources at the Texas Real Estate Commission (TREC).
- Earnest money delivery: The contract sets a short delivery window after the effective date, commonly 1 to 3 business days in practice. Your specific deadline will be in your contract.
- Escrow: The title company or escrow agent holds your deposit in a trust account until closing or a written agreement about disposition.
- Option fee timing: Your option fee is paid according to the option paragraph within the same early window. It is paid to the seller, often processed through the title company.
If you terminate under a valid contract right, such as during the option period or under a financing contingency, earnest money is typically refundable. If you terminate after those rights expire or fail to perform as required, the seller may be entitled to keep your earnest money as liquidated damages, or pursue other remedies outlined in the contract.
Typical amounts in Bryan, Copperfield, and Oakmont
Every home and market moment is different, but Bryan buyers can use these common guidelines:
- Statewide norms: In moderate or competitive markets, earnest money often equals about 1 percent of the purchase price. It can range from 0.5 to 2 percent, and higher in very competitive situations.
- Local ranges for starter and mid-priced homes in Bryan: You will often see earnest money between $1,000 and $5,000, with option fees around $100 to $400. Higher-priced homes may use a percentage of the price for earnest money.
Examples to make it concrete:
- Example A: On a $250,000 home in Oakmont, a common offer might include $2,500 in earnest money and a $300 option fee for a 7-day option period.
- Example B: On a $350,000 home in Copperfield, a stronger, seller-friendly offer could be $5,000 in earnest money with a short option period of 2 to 3 days and a $400 option fee.
These amounts should match your risk tolerance, your lender timeline, and how competitive the property is today. If inventory is tight, a larger earnest money deposit can help your offer stand out without removing key protections.
Your timeline and key deadlines
Contract timing drives your rights. Track each date from the effective date, which is when both parties sign and the contract becomes binding.
- Earnest money delivery: Often due within 1 to 3 business days. Confirm your contract deadline and the title company’s accepted delivery methods.
- Option period: Starts on the effective date and runs for the number of days you negotiated. The deadline is a hard cutoff for your unrestricted termination right.
- Inspections and repair talks: Schedule your inspection immediately, usually within the first 48 to 72 hours. Share concerns in writing and use the option period to negotiate repairs or credits.
- Financing and appraisal: Follow your lender’s timelines. If your contract includes a financing contingency, deliver notices as required so you preserve your rights.
Pro tip: Always get a written receipt from the title company when earnest money is delivered and keep copies of all notices sent.
Making a competitive offer while protecting funds
You can balance strength and safety by shaping your offer thoughtfully.
- Increase earnest money to signal commitment, while keeping a reasonable option period.
- Set a 5 to 7 day option period when possible. This is often enough for inspections and HOA review in Bryan neighborhoods.
- If competition is high and you shorten the option period, plan inspections the same day your offer is executed or the next morning.
- Avoid waiving critical protections without professional advice. If you limit your option period, consider asking for modest seller concessions to offset risk.
Inspection, financing, and appraisal interactions
Your earnest money is tied to how these pieces play out under the contract.
- Inspections: If you find issues and terminate within the option period with proper notice, the seller keeps the option fee and your earnest money is typically returned.
- Financing: If you cannot secure financing and your contract has a financing contingency, you can usually terminate and recover your earnest money if you follow the notice requirements.
- Appraisal: If the property appraises below the purchase price, your options depend on your contract language. Some buyers renegotiate, others use a termination right if available. How earnest money is handled follows those agreed remedies.
For consumer guidance on Texas practice, you can also explore resources from Texas REALTORS.
Safe delivery and wire instructions
Wire fraud is a real risk in any market. Protect your funds with a simple checklist.
- Verify the title company’s identity and instructions by calling a trusted phone number you source independently, not the number in a random email.
- Never act on wiring changes sent by email without live verification.
- Prefer a cashier’s check or a verified wire sent to the title company named in your contract.
- Get written confirmation that the title company received your earnest money.
Oakmont and Copperfield specifics
These Bryan neighborhoods often include HOAs. Use your option period to request and review HOA covenants, bylaws, budgets, and resale certificates. Review fees, use rules, and any known assessments so there are no surprises.
Many buyers also check flood zone status and drainage patterns. In our region, foundation and drainage inspections can be important due to soil and weather conditions. If the listing broker or seller prefers a specific local title company, confirm who will hold your earnest money and how to deliver it before your deadline.
Real-world scenarios and how to respond
- Found major defects during the option period: Send a written notice per the contract, then either negotiate repairs or credits, or terminate before the deadline. Your earnest money is typically returned, while the seller keeps the option fee.
- Missed the option deadline: If you try to terminate later without another valid contingency, the seller may claim the earnest money. Contact your agent immediately to review options.
- Multiple-offer situation: Consider increasing earnest money or tightening the option period, but keep enough time to inspect. A strong preapproval can also help your offer rise to the top.
Common pitfalls to avoid
- Delivering earnest money late. This can breach the contract. Set a reminder for the due date and plan your delivery ahead of time.
- Skipping inspections to be competitive. If you must limit the option period, schedule an inspection the moment your offer is accepted.
- Assuming earnest money is always refundable. Refunds depend on contract rights and proper notice. Know your deadlines and follow the contract exactly.
How to move forward with confidence
Buying in Copperfield, Oakmont, or nearby Bryan neighborhoods is exciting. When you understand how earnest money and the option period work, you can write a strong offer while keeping your funds safe. A thoughtful plan, clear timelines, and prompt communication make all the difference.
If you want a local advisor to walk you through these steps, connect with the boutique, broker-led team at Rising R Dream Properties. We bring deep Brazos Valley expertise, responsive guidance, and steady negotiation to help you secure the right home with confidence.
FAQs
What is earnest money in a Texas home purchase?
- It is a buyer deposit held by a title company or escrow agent to show good faith, credited at closing, and returned or forfeited based on your contract rights.
How much earnest money should I offer in Bryan’s Copperfield or Oakmont?
- Many buyers offer about 1 percent of price, with local ranges often $1,000 to $5,000 on mid-priced homes and option fees around $100 to $400, adjusted for competition.
Is earnest money refundable if I terminate during the option period?
- Generally yes. The seller keeps the option fee, and your earnest money is typically returned if you terminate timely and follow the contract’s notice rules.
Who holds my earnest money in Bryan, TX?
- Usually the title company named in your contract. Some brokers may receive it temporarily, but most transactions route funds to the title company handling closing.
What happens if my appraisal comes in low in Bryan?
- Your options depend on your contract. You may renegotiate or terminate if a contingency applies. The handling of earnest money follows the contract’s remedies.
How fast do I need to deliver earnest money after acceptance?
- The Texas contract sets a short window, commonly 1 to 3 business days in practice. Check your exact deadline and confirm the title company’s delivery methods.
