{"id":214,"date":"2025-05-07T19:54:53","date_gmt":"2025-05-07T19:54:53","guid":{"rendered":"https:\/\/www.hoyonow.com\/blog\/?p=214"},"modified":"2025-05-07T19:54:53","modified_gmt":"2025-05-07T19:54:53","slug":"how-to-handle-contingencies-in-a-fsbo-contract","status":"publish","type":"post","link":"https:\/\/portal.hoyonow.com\/blog\/?p=214","title":{"rendered":"How to Handle Contingencies in a FSBO Contract"},"content":{"rendered":"\n<p><em>By Robert Urban, Florida FSBO Seller x 3  and Contingency Planner<\/em><\/p>\n\n\n\n<p>So, you\u2019ve got a buyer. Woo-hoo! <br>You negotiated the price. You signed the contract. You\u2019re mentally packing boxes and wondering if anyone actually keeps the manual for the dishwasher. (My wife doesn&#8217;t understand almost every manual can be found online) <\/p>\n\n\n\n<p>And then\u2026 here come the contingencies.<br><strong>The \u201cifs,\u201d the \u201cbuts,\u201d the \u201cmaybes,\u201d and the \u201cwell, it depends.\u201d<\/strong><\/p>\n\n\n\n<p>Welcome to the magical land of real estate contracts \u2014 where nothing is truly locked in until about 12 people sign off, a cat walks across a keyboard, and Mercury is in retrograde.<\/p>\n\n\n\n<p>If you\u2019re selling <strong>FSBO<\/strong>, here\u2019s what you need to know about <strong>contingencies<\/strong> so they don\u2019t sneak up and punch your deal in the throat.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">First Off \u2014 What Is a Contingency?<\/h2>\n\n\n\n<p>A <strong>contingency<\/strong> is basically a built-in safety net that says:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThis sale will go through\u2026 <em>if<\/em> certain things happen.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>It protects the <strong>buyer<\/strong>, the <strong>seller<\/strong>, or both \u2014 depending on what\u2019s written into the contract.<\/p>\n\n\n\n<p>Think of them like speed bumps on the way to closing.<br>Some are minor. Some are massive.<br>All of them need to be understood \u2014 because missing a contingency deadline or misunderstanding what\u2019s in writing can cost you the deal, the money, or your sanity.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Common Contingencies You\u2019ll See (and How to Handle Them Like a Champ)<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">1. <strong>Inspection Contingency<\/strong><\/h3>\n\n\n\n<p><strong>What it means:<\/strong><br>The buyer has the right to inspect the home (usually within 7\u201315 days), and either renegotiate, request repairs, or walk away if they find something scary.<\/p>\n\n\n\n<p><strong>What to do:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Be ready for an inspector to crawl all over your house like a nosy raccoon.<\/li>\n\n\n\n<li>Be honest about known issues (you were anyway\u2026 right?)<\/li>\n\n\n\n<li>Don\u2019t panic if the inspection report is 47 pages long. That\u2019s normal.<\/li>\n<\/ul>\n\n\n\n<p><strong>Pro Tip:<\/strong><br>Most issues are fixable, negotiable, or credit-able. Don\u2019t lose your mind over a loose railing or ancient dryer vent. Stay calm. Be reasonable. Don\u2019t agree to redo the entire roof because the buyer\u2019s dad \u201cgot a bad feeling.\u201d<\/p>\n\n\n\n<p>HOYONOW.com offers a &#8220;As-Is&#8221; contract- that means that protects the seller much more than a standard one. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. <strong>Financing (Loan) Contingency<\/strong><\/h3>\n\n\n\n<p><strong>What it means:<\/strong><br>The buyer needs a mortgage, and if they can\u2019t get approved, they can back out and get their deposit back.<\/p>\n\n\n\n<p><strong>What to do:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Ask for a <strong>pre-approval letter<\/strong> up front \u2014 not just a vague \u201cthey said we\u2019re good\u201d<\/li>\n\n\n\n<li>Track the financing deadline in the contract (usually 30 days-ish)<\/li>\n\n\n\n<li>If that deadline passes and they don\u2019t cancel, <strong>they\u2019re locked in<\/strong><\/li>\n<\/ul>\n\n\n\n<p><strong>Pro Tip:<\/strong><br>Some FSBO sellers mistakenly let financing deadlines come and go without follow-up. Don\u2019t be that seller. Set calendar reminders. Send polite-but-firm emails. You\u2019re running a business now, remember?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. <strong>Appraisal Contingency<\/strong><\/h3>\n\n\n\n<p><strong>What it means:<\/strong><br>If the buyer is getting a loan, the lender will order an appraisal. If the home doesn\u2019t appraise for the purchase price, the buyer can back out or renegotiate.<\/p>\n\n\n\n<p><strong>What to do:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Price realistically to avoid appraisal drama.<\/li>\n\n\n\n<li>If it comes in low, the buyer has options: come up with cash to cover the gap, renegotiate, or bail.<\/li>\n\n\n\n<li>You also have options: reduce the price, stand firm, or list it again with a new chip on your shoulder.<\/li>\n<\/ul>\n\n\n\n<p><strong>Pro Tip:<\/strong><br>An appraisal isn\u2019t about your granite countertops or your personal sense of value. It\u2019s about comps, condition, and cold, heartless market math. Don\u2019t take it personally. (Okay, take it <em>a little<\/em> personally, but don\u2019t be a jerk about it.)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. <strong>Home Sale Contingency<\/strong><\/h3>\n\n\n\n<p><strong>What it means:<\/strong><br>The buyer has to sell their current home first before buying yours. If they can\u2019t? They\u2019re out, usually with their earnest money in tow.<\/p>\n\n\n\n<p><strong>What to do:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Be very cautious with this one.<\/li>\n\n\n\n<li>Consider setting a strict timeline (i.e., they must accept an offer on their home by a certain date).<\/li>\n\n\n\n<li>You can add a \u201ckick-out clause\u201d that says you can still market your home \u2014 and if someone else makes an offer, your buyer has to either remove the contingency or step aside.<\/li>\n<\/ul>\n\n\n\n<p><strong>Pro Tip:<\/strong><br>This contingency is like dating someone who\u2019s \u201cemotionally unavailable but totally into you.\u201d<br>It can work, but you\u2019d better go in with open eyes and a Plan B.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Golden Rule of FSBO Contingencies: <strong>Track Every Deadline<\/strong><\/h2>\n\n\n\n<p>Every contingency has a <strong>clock attached<\/strong>.<br>Miss one, and the deal could die. Or worse, <strong>stay alive in zombie mode<\/strong>, wasting weeks of your life before falling apart at the finish line.<\/p>\n\n\n\n<p>Use:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A calendar<\/li>\n\n\n\n<li>A spreadsheet<\/li>\n\n\n\n<li>A piece of paper taped to your forehead<\/li>\n<\/ul>\n\n\n\n<p>Just <strong>track it all<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Inspection period ends: ______<\/li>\n\n\n\n<li>Financing approval deadline: ______<\/li>\n\n\n\n<li>Appraisal due: ______<\/li>\n\n\n\n<li>Contingency removal date: ______<\/li>\n<\/ul>\n\n\n\n<p>And follow up. Don\u2019t assume anything is being handled just because everyone seems nice and says things like \u201cWe\u2019re good.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Happens If the Buyer Cancels Because of a Contingency?<\/h2>\n\n\n\n<p>If they\u2019re <strong>within their contingency window<\/strong>, they usually get their deposit back.<br>Yes, it sucks. Yes, you can feel salty.<br>But that\u2019s the legal safety net they\u2019re allowed.<\/p>\n\n\n\n<p>If they try to walk away <strong>after<\/strong> contingencies are removed or deadlines have passed?<\/p>\n\n\n\n<p>You keep the earnest money.<br><em>And you light a candle and start over with the next buyer.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What If YOU Want Out of the Deal?<\/h2>\n\n\n\n<p>That\u2019s tougher.<\/p>\n\n\n\n<p>Contingencies are there to protect <strong>buyers<\/strong> more than sellers.<br>If you cancel for no legal reason? You could be in breach of contract.<\/p>\n\n\n\n<p>So make sure you\u2019re 100% in before you sign. And if something changes? Talk to your title company or an attorney <strong>before<\/strong> you make any moves.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Contingencies Aren\u2019t Deal-Killers \u2014 They\u2019re Just Guardrails<\/h2>\n\n\n\n<p>If you handle them right, contingencies don\u2019t kill deals \u2014 they <strong>protect<\/strong> you and keep things on track.<\/p>\n\n\n\n<p>So:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Don\u2019t fear them<\/li>\n\n\n\n<li>Understand them<\/li>\n\n\n\n<li>Manage them like a project boss<\/li>\n\n\n\n<li>Use a contract that actually spells them out clearly<\/li>\n<\/ul>\n\n\n\n<p>Need a clean, no-nonsense, customizable FSBO contract that includes contingency timelines and protections?<br>Get the one I recommend over at <strong><a class=\"\" href=\"http:\/\/hoyonow.com\">HOYO<\/a>NOW.com <\/strong>\u2014 it\u2019s built for regular humans, not real estate robots.<\/p>\n\n\n\n<p>Because \u201cFor Sale By Owner\u201d doesn\u2019t mean \u201cFigure It Out By Yourself.\u201d<br>You\u2019ve got this. Just don\u2019t forget to check the calendar.<\/p>\n\n\n\n<p>I am rooting for you,<\/p>\n\n\n\n<p>Robert Urban <\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Robert Urban, Florida FSBO Seller x 3 and Contingency Planner So, you\u2019ve got a buyer. Woo-hoo! You negotiated the price. You signed the contract. You\u2019re mentally packing boxes and wondering if anyone actually keeps the manual for the dishwasher. (My wife doesn&#8217;t understand almost every manual can be found online) And then\u2026 here come the contingencies.The \u201cifs,\u201d the \u201cbuts,\u201d the \u201cmaybes,\u201d and the \u201cwell, it depends.\u201d Welcome to the magical land of real estate contracts \u2014 where nothing is truly locked in until about 12 people sign off, a cat walks across a keyboard, and Mercury is in retrograde. If you\u2019re selling FSBO, here\u2019s what you need to know about contingencies so they don\u2019t sneak up and punch your deal in the throat. First Off \u2014 What Is a Contingency? A contingency is basically a built-in safety net that says: \u201cThis sale will go through\u2026 if certain things happen.\u201d It protects the buyer, the seller, or both \u2014 depending on what\u2019s written into the contract. Think of them like speed bumps on the way to closing.Some are minor. Some are massive.All of them need to be understood \u2014 because missing a contingency deadline or misunderstanding what\u2019s in writing can cost you the deal, the money, or your sanity. Common Contingencies You\u2019ll See (and How to Handle Them Like a Champ) 1. Inspection Contingency What it means:The buyer has the right to inspect the home (usually within 7\u201315 days), and either renegotiate, request repairs, or walk away if they find something scary. What to do: Pro Tip:Most issues are fixable, negotiable, or credit-able. Don\u2019t lose your mind over a loose railing or ancient dryer vent. Stay calm. Be reasonable. Don\u2019t agree to redo the entire roof because the buyer\u2019s dad \u201cgot a bad feeling.\u201d HOYONOW.com offers a &#8220;As-Is&#8221; contract- that means that protects the seller much more than a standard one. 2. Financing (Loan) Contingency What it means:The buyer needs a mortgage, and if they can\u2019t get approved, they can back out and get their deposit back. What to do: Pro Tip:Some FSBO sellers mistakenly let financing deadlines come and go without follow-up. Don\u2019t be that seller. Set calendar reminders. Send polite-but-firm emails. You\u2019re running a business now, remember? 3. Appraisal Contingency What it means:If the buyer is getting a loan, the lender will order an appraisal. If the home doesn\u2019t appraise for the purchase price, the buyer can back out or renegotiate. What to do: Pro Tip:An appraisal isn\u2019t about your granite countertops or your personal sense of value. It\u2019s about comps, condition, and cold, heartless market math. Don\u2019t take it personally. (Okay, take it a little personally, but don\u2019t be a jerk about it.) 4. Home Sale Contingency What it means:The buyer has to sell their current home first before buying yours. If they can\u2019t? They\u2019re out, usually with their earnest money in tow. What to do: Pro Tip:This contingency is like dating someone who\u2019s \u201cemotionally unavailable but totally into you.\u201dIt can work, but you\u2019d better go in with open eyes and a Plan B. The Golden Rule of FSBO Contingencies: Track Every Deadline Every contingency has a clock attached.Miss one, and the deal could die. Or worse, stay alive in zombie mode, wasting weeks of your life before falling apart at the finish line. Use: Just track it all: And follow up. Don\u2019t assume anything is being handled just because everyone seems nice and says things like \u201cWe\u2019re good.\u201d What Happens If the Buyer Cancels Because of a Contingency? If they\u2019re within their contingency window, they usually get their deposit back.Yes, it sucks. Yes, you can feel salty.But that\u2019s the legal safety net they\u2019re allowed. If they try to walk away after contingencies are removed or deadlines have passed? You keep the earnest money.And you light a candle and start over with the next buyer. What If YOU Want Out of the Deal? That\u2019s tougher. Contingencies are there to protect buyers more than sellers.If you cancel for no legal reason? You could be in breach of contract. So make sure you\u2019re 100% in before you sign. And if something changes? Talk to your title company or an attorney before you make any moves. Contingencies Aren\u2019t Deal-Killers \u2014 They\u2019re Just Guardrails If you handle them right, contingencies don\u2019t kill deals \u2014 they protect you and keep things on track. So: Need a clean, no-nonsense, customizable FSBO contract that includes contingency timelines and protections?Get the one I recommend over at HOYONOW.com \u2014 it\u2019s built for regular humans, not real estate robots. Because \u201cFor Sale By Owner\u201d doesn\u2019t mean \u201cFigure It Out By Yourself.\u201dYou\u2019ve got this. Just don\u2019t forget to check the calendar. I am rooting for you, Robert Urban<\/p>\n","protected":false},"author":5,"featured_media":215,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[9,8],"tags":[74,76,13,10,75],"class_list":["post-214","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fsbo","category-selling-your-house","tag-contingencies","tag-financing","tag-florida","tag-fsbo","tag-real-estate-contract"],"_links":{"self":[{"href":"https:\/\/portal.hoyonow.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/214","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/portal.hoyonow.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/portal.hoyonow.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/portal.hoyonow.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/portal.hoyonow.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=214"}],"version-history":[{"count":1,"href":"https:\/\/portal.hoyonow.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/214\/revisions"}],"predecessor-version":[{"id":216,"href":"https:\/\/portal.hoyonow.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/214\/revisions\/216"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/portal.hoyonow.com\/blog\/index.php?rest_route=\/wp\/v2\/media\/215"}],"wp:attachment":[{"href":"https:\/\/portal.hoyonow.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/portal.hoyonow.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=214"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/portal.hoyonow.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}