By Robert Urban, Florida FSBO Seller x 3 and Contingency Planner
So, you’ve got a buyer. Woo-hoo!
You negotiated the price. You signed the contract. You’re mentally packing boxes and wondering if anyone actually keeps the manual for the dishwasher. (My wife doesn’t understand almost every manual can be found online)
And then… here come the contingencies.
The “ifs,” the “buts,” the “maybes,” and the “well, it depends.”
Welcome to the magical land of real estate contracts — 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’re selling FSBO, here’s what you need to know about contingencies so they don’t sneak up and punch your deal in the throat.
First Off — What Is a Contingency?
A contingency is basically a built-in safety net that says:
“This sale will go through… if certain things happen.”
It protects the buyer, the seller, or both — depending on what’s 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 — because missing a contingency deadline or misunderstanding what’s in writing can cost you the deal, the money, or your sanity.
Common Contingencies You’ll 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 7–15 days), and either renegotiate, request repairs, or walk away if they find something scary.
What to do:
- Be ready for an inspector to crawl all over your house like a nosy raccoon.
- Be honest about known issues (you were anyway… right?)
- Don’t panic if the inspection report is 47 pages long. That’s normal.
Pro Tip:
Most issues are fixable, negotiable, or credit-able. Don’t lose your mind over a loose railing or ancient dryer vent. Stay calm. Be reasonable. Don’t agree to redo the entire roof because the buyer’s dad “got a bad feeling.”
HOYONOW.com offers a “As-Is” 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’t get approved, they can back out and get their deposit back.
What to do:
- Ask for a pre-approval letter up front — not just a vague “they said we’re good”
- Track the financing deadline in the contract (usually 30 days-ish)
- If that deadline passes and they don’t cancel, they’re locked in
Pro Tip:
Some FSBO sellers mistakenly let financing deadlines come and go without follow-up. Don’t be that seller. Set calendar reminders. Send polite-but-firm emails. You’re 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’t appraise for the purchase price, the buyer can back out or renegotiate.
What to do:
- Price realistically to avoid appraisal drama.
- If it comes in low, the buyer has options: come up with cash to cover the gap, renegotiate, or bail.
- You also have options: reduce the price, stand firm, or list it again with a new chip on your shoulder.
Pro Tip:
An appraisal isn’t about your granite countertops or your personal sense of value. It’s about comps, condition, and cold, heartless market math. Don’t take it personally. (Okay, take it a little personally, but don’t 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’t? They’re out, usually with their earnest money in tow.
What to do:
- Be very cautious with this one.
- Consider setting a strict timeline (i.e., they must accept an offer on their home by a certain date).
- You can add a “kick-out clause” that says you can still market your home — and if someone else makes an offer, your buyer has to either remove the contingency or step aside.
Pro Tip:
This contingency is like dating someone who’s “emotionally unavailable but totally into you.”
It can work, but you’d 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:
- A calendar
- A spreadsheet
- A piece of paper taped to your forehead
Just track it all:
- Inspection period ends: ______
- Financing approval deadline: ______
- Appraisal due: ______
- Contingency removal date: ______
And follow up. Don’t assume anything is being handled just because everyone seems nice and says things like “We’re good.”
What Happens If the Buyer Cancels Because of a Contingency?
If they’re within their contingency window, they usually get their deposit back.
Yes, it sucks. Yes, you can feel salty.
But that’s the legal safety net they’re 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’s 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’re 100% in before you sign. And if something changes? Talk to your title company or an attorney before you make any moves.
Contingencies Aren’t Deal-Killers — They’re Just Guardrails
If you handle them right, contingencies don’t kill deals — they protect you and keep things on track.
So:
- Don’t fear them
- Understand them
- Manage them like a project boss
- Use a contract that actually spells them out clearly
Need a clean, no-nonsense, customizable FSBO contract that includes contingency timelines and protections?
Get the one I recommend over at HOYONOW.com — it’s built for regular humans, not real estate robots.
Because “For Sale By Owner” doesn’t mean “Figure It Out By Yourself.”
You’ve got this. Just don’t forget to check the calendar.
I am rooting for you,
Robert Urban