What Are Contingencies in a Florida Real Estate Offer?
What Are Contingencies in a Florida Real Estate Offer?
Buying a home in Florida? Then you’re going to hear a lot about “contingencies.”
They might sound like fine print, but they could save you thousands and protect your future.
What Is a Contingency?
A contingency is a condition that must be met before the sale can move forward. If it isn’t met, the buyer can usually back out without losing their deposit.
Think of them as “escape clauses” that give you time to:
- Get a proper inspection
- Finalize your mortgage
- Confirm the property’s value (via appraisal)
Most Common Florida Contingencies
1. Inspection Contingency
Gives you time to inspect the home and negotiate repairs or cancel the contract.
2. Financing Contingency
Protects you if your loan approval falls through. You typically need to apply within 5 days and secure approval within 30 days.
3. Appraisal Contingency
If the home appraises below the offer price, you can renegotiate or walk away.
4. Sale of Buyer’s Home (Less common)
Used when your purchase depends on selling your current home first.
Can I Waive Contingencies to Win the Deal?
In Florida’s hot market, some buyers waive contingencies to be more competitive.
⚠️ Be careful. While this may help your offer stand out, it adds real risk:
- You could lose your deposit if the deal falls through
- You may inherit serious repair problems
- You could pay more than the home is worth
How to Use Contingencies Strategically
You don’t need to waive all protections to be competitive. Instead:
- Use short timelines (e.g., 5-day inspections)
- Submit pre-approval letters
- Offer appraisal gap coverage (within reason)
- Waive only the contingencies that are non-critical to your goals
Real Florida Example:
A buyer in Lakewood Ranch included a 10-day inspection and appraisal contingency but waived the financing contingency due to pre-underwritten approval. Their offer beat 4 others and still gave them protection.
Final Thought
Contingencies are not just legalese—they’re your safety net. A good agent helps you balance competitiveness with protection.
📞 Call Michael Renick at 941.400.8735 to review or structure your Florida real estate offer with the right contingencies.
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