Steps 1-4: Pre-Approval Through Inspection

Step 1: Pre-approval. Get pre-approved with a Florida-licensed lender. Include verification of your DTI with realistic Florida property tax and insurance costs in the PITI calculation — these can be higher than buyers from other states expect. Step 2: Buyer Representation Agreement. Required post-August 2024 NAR settlement. Step 3: Offer on FAR or FAR-BAR contract. Florida uses FAR (Florida Association of Realtors) and FAR-BAR (joint Florida Association of Realtors and Florida Bar) approved forms. Key terms: purchase price, earnest money (1–3%), inspection period length (10–15 days), closing date, contingencies. Step 4: Inspection period. During the inspection period, the buyer may cancel for any reason and receive a full earnest money refund by delivering written notice before the period expires. No separate fee required (unlike Texas option fee). After the inspection period expires, earnest money is at risk unless a remaining contingency is invoked.

Florida-Specific Due Diligence: Flood and Insurance

Flood zone determination: Use the FEMA Flood Map Service Center (msc.fema.gov) to verify the property's flood zone classification. Properties in Special Flood Hazard Areas (SFHA, zones A or V) require flood insurance if financed with a federally backed loan. Cost varies: $700–1,500/year for standard coverage is common; higher for coastal properties with high replacement cost. Flood disclosure: Florida sellers who have filed flood insurance claims must disclose this. Request the CLUE report showing prior claims. Elevation Certificate: for properties in flood zones, an elevation certificate establishes the structure's elevation relative to base flood elevation. Properties above base flood elevation have significantly lower flood insurance costs. Homeowners insurance quote: Get a quote before removing contingencies. For older homes, coastal properties, or properties with older roofs, insurance availability and cost is a material factor. A market comparison: the same home in Sarasota vs 5 miles inland may have $4,000 vs $8,000 annual insurance cost.

The Johnson v. Davis Disclosure Standard

Florida sellers are required by the Florida Supreme Court's Johnson v. Davis (1985) decision to disclose all known material facts that affect the value or desirability of a property and that are not readily observable or known to the buyer. What must be disclosed: known roof leaks, known flooding or water intrusion, known foundation issues, known mold, known sinkhole activity, known HOA litigation affecting the property, known environmental contamination. Florida Seller's Property Disclosure (FIRPTA/SPDS): the standard FAR seller disclosure form covers dozens of specific items. Review it carefully. Follow-up questions through your agent — in writing — on any checked items create a paper trail. CLUE report: a prior insurance claims history (Comprehensive Loss Underwriting Exchange) often reveals prior damage events the seller didn't mention. Sellers must provide the CLUE report or authorize its request.

“The two steps most first-time Florida buyers underinvest in during their due diligence period: the flood zone check and the insurance quote. These aren't paperwork formalities — they can change the cost of ownership by $3,000–8,000 per year or more. I require both before any buyer of mine removes contingencies on a Florida property. The 10–15 day inspection period is the window; use all of it.”

— Ryan Brown, Principal Broker & CEO, Own Luxury Homes®

• Florida Homebuying Guide (Hub)
• Florida Closing Costs
• Homestead & Save Our Homes Cap
• Florida Property Taxes
• Florida First-Time Buyer Programs
• Florida Insurance Crisis Guide
• Best Florida Markets to Buy

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