Making an Offer on a Home in South Florida: What Buyers Need to Know

Most buyers come into the Florida offer process with experience from other states, and that experience helps in some ways and misleads in others. Florida's standard purchase contract, inspection rights, and negotiation conventions have specific characteristics that differ from what buyers are accustomed to in New York, New Jersey, California, Illinois, or most other states where relocators originate. Getting the details right at the offer stage sets up the entire transaction for success. Getting them wrong, or making assumptions that do not apply in Florida, costs money, time, or deals.

This is a practical guide to how offers actually work in the Martin and Palm Beach County markets, written for buyers who want to understand the mechanics rather than just follow instructions they do not understand.

How the Florida As-Is Contract Works

The vast majority of residential purchases in Florida use the FR/BAR As-Is Residential Contract for Sale and Purchase, the standard form produced jointly by the Florida Realtors association and the Florida Bar. The name causes confusion for buyers accustomed to other states: "as-is" in Florida does not mean you are waiving inspection rights or accepting the property in whatever condition it is in. It means you are accepting the property in its current condition if you choose to proceed, with the right to cancel during the inspection period for any reason and receive your deposit back.

This structure is actually favorable to buyers compared to many other states. During your inspection period, typically 10 to 15 days in most South Florida contracts, you can order any inspection you want, review the results, and decide to proceed or cancel for any reason without forfeiting your deposit. You do not need to list specific repair requests or negotiate items individually. If something significant surfaces and the seller will not address it, you cancel and get your money back. If you decide to proceed, you do so knowing the full condition picture.

The practical implication is that the inspection period in Florida functions as a true due diligence window. Use it fully. Order a general home inspection, a wind mitigation inspection, a four-point inspection (which insurers commonly require for older homes), a roof inspection if the home has age, a pool inspection if applicable, and for waterfront properties a marine survey covering the dock and seawall. The cost of these inspections, $500 to $1,500 collectively depending on what you order, is the best money you spend in any real estate transaction.

Earnest Money: What Is Expected in This Market

Earnest money in South Florida typically runs one to three percent of the purchase price, though specific expectations vary by price range and market conditions. On a $700,000 property, earnest money of $7,000 to $21,000 is within the standard range. On a $2 million waterfront property, buyers commonly put up $30,000 to $60,000 in earnest money to demonstrate serious intent.

Florida contracts generally structure earnest money in two parts. The initial deposit is due within three days of contract execution and is typically a smaller amount. The additional deposit, if any, is due at a specified point, often at the end of the inspection period, and is larger. Some contracts structure the full deposit as a single payment due within three to five days of execution.

During the inspection period, the deposit is typically fully refundable if the buyer elects to cancel. After the inspection period ends, the buyer's options to cancel and recover their deposit narrow to the specific contingency provisions in the contract. This is why understanding contingency expiration dates matters: once an inspection period closes without cancellation, the buyer has committed to proceeding unless a specific remaining contingency (financing, appraisal) is not satisfied.

In competitive situations where a seller has multiple offers, larger earnest money deposits signal commitment and can differentiate your offer. An offer with $5,000 in earnest money on a $500,000 home looks less committed than one with $15,000, even at the same purchase price. In a lower-competition environment, standard amounts are fine.

Contingencies: Which Ones to Include and Why

Florida contracts typically include three main contingency provisions that protect buyers while the transaction is in process.

The inspection contingency is built into the As-Is contract structure: during the inspection period, the buyer may cancel for any reason. This is automatic in the standard form and does not need to be separately added. The key is negotiating an inspection period that is long enough to actually complete your due diligence, particularly for waterfront properties where marine surveys and seawall assessments add time. Standard inspection periods run 10 to 15 days. For complex properties, negotiating 15 to 20 days is reasonable.

The financing contingency protects buyers who are purchasing with a mortgage. If the buyer cannot obtain financing on the specified terms by the loan approval deadline (typically 30 to 45 days from execution), the buyer may cancel and recover their deposit. Cash buyers do not need a financing contingency, and removing it can strengthen an offer in competitive situations, but only do so if you have genuine confirmed cash availability. Some buyers who have been pre-approved and are highly confident in their financing waive the financing contingency to strengthen offers, but this is a risk decision that deserves careful consideration.

The appraisal contingency provides protection if the property appraises below the contract price. If the property appraises at $680,000 on a $700,000 contract, the buyer can cancel, negotiate a price reduction to the appraised value, make up the gap in cash, or accept a combination. In markets with multiple competing offers, buyers sometimes waive appraisal contingencies or limit them (agreeing to cover a gap up to a certain amount), but this creates real financial exposure if the appraisal comes in low.

In the current Martin and Palm Beach County market, buyers generally have more leverage to include standard contingencies than during the 2021-2022 period when sellers routinely demanded waived contingencies. Include the protections that match your actual situation and risk tolerance rather than waiving them reflexively to appear competitive.

Pricing Strategy: How to Think About What to Offer

List price in South Florida is a starting point, not a final number, and the appropriate offer strategy depends on days on market, comparable sales, property condition, seller motivation, and how many competing buyers are actively interested.

In the current market, properties that are priced accurately to current comps and show well are still selling at or very near list price with limited negotiation. Properties that have been sitting for 60 days or more, that have had price reductions, or that are in markets with increasing inventory often present meaningful negotiation opportunity.

The right starting point for any offer is a comparative market analysis from your agent using the most recent comparable sales, not list prices of active competing properties. Active listings tell you what sellers are hoping to get. Closed sales tell you what buyers have actually paid. The difference between those two figures in a given market segment tells you how much negotiation room exists.

For waterfront properties specifically, comparables require careful matching. A home with six feet of water depth at the dock, direct Intracoastal access, and a covered 50-foot slip is not comparable to one with four feet of depth on a canal with bridge restrictions. This is especially true in Stuart, Jensen Beach, and Jupiter, where canal system quality varies significantly within the same neighborhood. Your agent should be pulling comparables that match the specific water access characteristics of the property you are evaluating, not just proximity and square footage.

In situations where a property has been on the market and has had one or more price reductions, the seller's motivation is typically genuine. The original list price did not produce an accepted offer, and the seller has already adjusted their expectations. That context supports an offer below the current list price if the market analysis supports it.

Closing Costs: What Florida Buyers Actually Pay

Closing costs in Florida are meaningful and often surprise buyers from other states who are accustomed to different cost structures. In Palm Beach County, the buyer typically pays for owner's title insurance by custom, which is the opposite of most other states where the seller pays. Title insurance on a $700,000 purchase runs approximately $3,500 to $5,000. In Martin County, customs sometimes differ and the cost allocation is more negotiable.

Documentary stamp taxes on the mortgage run $3.50 per $1,000 of loan amount. Intangible tax on a new mortgage runs $2 per $1,000 of loan amount. Lender fees, escrow setup, prepaid property taxes, and prepaid homeowners insurance typically add $3,000 to $8,000 in additional closing costs depending on the specific loan and property.

Total closing costs for a financed Florida purchase typically run two to four percent of the purchase price. On a $700,000 purchase with a $560,000 mortgage (80 percent LTV), total closing costs might run $14,000 to $28,000. Cash purchases are less expensive in closing costs but still carry title insurance, documentary stamps on the deed, and other fees.

Closing cost credits from the seller are a legitimate negotiating tool, particularly in situations where the seller is motivated to close or where the property has been on market for an extended period. Rather than reducing the purchase price, requesting a seller credit toward closing costs achieves similar economic effect while allowing the property to close at a price that may matter for the seller's net proceeds or loan payoff.

Negotiating After the Inspection

The inspection period is commonly where transactions get renegotiated after the initial offer is accepted. Significant findings, a roof needing replacement in the near term, evidence of prior water intrusion, an aging electrical panel flagged by the insurer, or a seawall needing attention, give buyers the basis for requesting either a price reduction or a credit at closing.

Florida sellers are generally more amenable to closing cost credits than to price reductions, for practical reasons: a price reduction changes the contract and may trigger renegotiation of other terms, while a credit is addenda that leaves the purchase price intact. From the buyer's perspective, either achieves the same economic result if the purchase price is already agreed.

The quality of your inspection team matters here. An inspector who documents issues clearly and provides accurate cost estimates gives you credible information to bring to the negotiation. An inspector who is vague or who minimizes findings leaves you with less negotiating basis. Use inspectors who know Florida construction, Florida's humidity and salt air environment, and the specific property types they are evaluating.

For waterfront properties, the marine survey findings are often the most significant post-inspection negotiation items. Seawall remediation costs, dock replacement or major repair needs, and boat lift condition issues are all legitimate items to bring back to the seller after inspection if the marine survey surfaces them.

Coming to the Table Prepared

The buyers who navigate South Florida transactions most smoothly are the ones who understood the contract structure before they were in one, who had their financing in order before they found the property they wanted, and who used the inspection period as the genuine due diligence tool it is designed to be.

Coastal Real Estate Pros works with buyers throughout Martin and Palm Beach Counties and helps you understand how the process works in this specific market before you are in the middle of it. Whether you are evaluating your first Florida purchase or have bought elsewhere and are learning how Florida differs, we can walk you through what to expect at each stage.

For buyers also navigating the broader process of relocating from another state, our complete out-of-state buyer guide covers the full picture from pre-approval through closing and first year. If you are evaluating the best time to make your move from a market timing perspective, our seasonal market patterns guide covers when competition and inventory favor buyers. For buyers pursuing off-market opportunities where the offer process requires extra care, our off-market properties guide covers how those transactions differ from standard listed deals. And before making offers on any coastal property, verifying flood zone designation and estimated insurance costs is essential, and our flood zones and insurance guide walks through exactly how to do that.

Frequently Asked Questions

What does as-is mean on a Florida real estate contract?

In Florida, an as-is contract does not mean you waive inspection rights or accept the property without review. It means you have the right to inspect the property thoroughly during the inspection period and may cancel for any reason during that window, receiving your deposit back. If you choose to proceed after inspections, you accept the property in its current condition. The as-is structure actually gives Florida buyers strong due diligence protection: you can walk away from anything that surfaces during inspections without penalty.

How much earnest money should I put down on a South Florida home?

Standard earnest money in South Florida runs one to three percent of the purchase price. On a $600,000 home, that is $6,000 to $18,000. In competitive situations, a higher deposit can signal commitment and strengthen your offer. In straightforward transactions, one to two percent is typical. Cash buyers often put up larger deposits as part of a simplified offer structure that eliminates financing contingency timelines.

Can I waive the financing contingency to make my offer more competitive?

You can, but it is a real risk. If you waive the financing contingency and then cannot obtain financing, you risk losing your earnest money deposit. Buyers who have been fully underwritten and pre-approved with a reliable lender, or who have confirmed available cash as a backstop, can consider this approach in competitive situations. Buyers who are not fully underwritten or who have any income documentation complexity should keep the financing contingency in place regardless of competitive pressure.

How long is a typical inspection period in South Florida?

Standard inspection periods in Martin and Palm Beach County contracts run 10 to 15 days from contract execution. For waterfront properties, complex estates, or properties that may require additional specialists such as marine surveyors, negotiating 15 to 20 days is reasonable and most sellers will agree. Use the full inspection period. Do not rush inspections to accommodate the seller's preference for speed at the expense of your due diligence.

What closing costs should I expect as a buyer in Florida?

Florida buyers should budget two to four percent of the purchase price for closing costs, which include owner's title insurance (customarily the buyer's cost in Palm Beach County), lender fees, documentary stamp tax on the mortgage, intangible tax on the note, prepaid property taxes and insurance, and escrow fees. On a $700,000 financed purchase, total closing costs typically run $14,000 to $28,000 depending on the specific lender, loan type, and allocation of costs negotiated with the seller.

Is it normal to negotiate repairs after the inspection in Florida?

It is common to renegotiate after inspections surface significant issues, and it is entirely normal in the current market. The most common outcomes are a closing cost credit from the seller, a price reduction, or the seller agreeing to repair specific items before closing. Sellers in Florida generally prefer credits to price reductions. The inspection report gives you documented, independent support for any renegotiation request. Cosmetic issues are typically not appropriate renegotiation items; significant systems, structural, water intrusion, or safety findings are the legitimate basis for going back to the seller.

Disclaimer: The information in this article is provided for general informational purposes and reflects market conditions and contract conventions as of the publication date. Real estate laws, contract forms, closing cost customs, and market conditions change. This content does not constitute legal advice. Always consult with a qualified Florida real estate attorney and experienced buyer's agent before making purchase decisions. Coastal Real Estate Pros makes no guarantees regarding the accuracy or completeness of information presented.