Florida Inspection Bluff vs. Backup Offers

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Inspired by this SliceOfFlorida.com Blog Post

Episode Overview

In this episode of the Real Estate Agent Man Podcast, hosts Ian and Angela explore the "Florida Inspection Bluff," a buyer strategy in Florida real estate that leverages the inspection period to renegotiate prices. They break down how it works, signs to watch for, and why it can fail, with a real-world case study. A must-listen for anyone navigating real estate negotiations.

Key Topics and Timestamps

• [0:00] Introduction
  Steve welcomes listeners from over 1000 cities across 74 countries, introducing the episode’s focus on the Florida Inspection Bluff, a common buyer tactic.
• [0:34] What is the Florida Inspection Bluff?
  Ian and Angela introduce the concept, describing it as a high-stakes negotiation tactic where buyers use inspections to demand price reductions.
• [1:02] Deep Dive into the Strategy
  The hosts explain how buyers offer a higher price to secure a property, then use the inspection report as leverage to negotiate a lower price.
• [2:13] Role of the “As-Is” Contract
  Discussion of Florida’s “as-is” contract, which includes a broad inspection contingency allowing buyers to back out for any reason and recover their earnest money deposit (e.g., “I don’t like the mailbox” [3:19]).
• [3:25] Red Flags for Sellers
  Key signs of the bluff include buyers focusing on the age of big-ticket items (e.g., roof, AC) after inspections, despite these details often being available upfront [3:35].
• [4:30] Case Study: Brad and Shelley
  The hosts introduce a case study of Brad and Shelley, house hunting in Venice, Florida, for a specific property under $400,000 [4:38]. They detail the couple’s tactic of securing two properties under contract simultaneously [5:58].
• [6:19] The Bluff in Action
  Brad and Shelley’s enthusiastic inspection performance (e.g., measuring furniture, getting unnecessary pool cage quotes) is described, followed by their sudden demand for a price reduction or cancellation that night [8:20].
• [8:49] Why the Bluff Failed
  The sellers’ preparedness with a signed backup offer allowed them to reject the ultimatum and move forward with the backup buyers instantly [9:04].
• [10:01] Key Takeaways
  Lessons for buyers (know the risks), sellers (secure backup offers), and anyone interested in negotiation dynamics. The bluff relies on the “as-is” contract loophole, but preparation can neutralize it [10:12].
• [11:40] Closing and Call to Action
  Steve encourages listeners to visit sliceofflorida.com and subscribe for more real estate insights.

Additional Information

• Podcast Details: The Real Estate Agent Man Podcast offers coaching for Florida buyers and sellers in Sarasota, Charlotte, and Manatee counties. Steve interviews agents nationwide to connect customers with trusted professionals.
• Call to Action: Subscribe and leave a review. Visit sliceofflorida.com for listings and resources.
• Contact: Reach Steve Martin at Slice of Florida Realty for personalized guidance.

Source Material

Based on Failed Buyer Tactic: The Florida Inspection Bluff, featuring the Brad and Shelley case study.

Transcribed by otter.ai

Steve Martin Smith is a Licensed Florida Real Estate Broker and the owner of Slice of Florida Realty in Sarasota County Florida.