Understanding Florida’s Rising Contract Failures: Qualification Over Financing

Written by:

Rudi Davis

Date:

03 Dec 2025

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Florida’s real estate market is experiencing a contract failure epidemic, with over 18% of buyers walking away from deals in October alone – but according to one experienced broker, the problem isn’t what most industry professionals think it is.

Kathryn Zangrilli, broker-owner of Broker Brothers LLC with 25 years of experience across Jacksonville and Naples markets, argues that rising walkout rates stem from fundamental gaps in buyer education and qualification, not market conditions or financing challenges.

When asked about why deals fail, Zangrilli highlights three key factors. The first is properly qualifying buyers upfront. She emphasizes that understanding a buyer’s financial capacity is not enough; agents also need to clarify how much the buyer actually intends to spend, as the two are often very different.

The Qualification Versus Capacity Problem

According to Zangrilli, many agents are confusing financial capacity with actual spending intent, leading to mismatched expectations that surface only after contracts are signed. This distinction becomes critical in markets like Naples, where buyers often have significant financial resources but specific value expectations.

The second factor, Zangrilli explains, is the lack of upfront education about the buying process. She stresses the importance of walking buyers through each stage – from initial contract to the steps after going under contract – so they understand what to expect before they begin the transaction.

Zangrilli’s firm has avoided the walkout trend affecting the broader Florida market by implementing comprehensive buyer education protocols before showing properties. However, she acknowledges that the statistics “don’t lie” about the broader industry challenge.

The Comparable Sales Trap

A particularly challenging situation occurs in condo markets, where buyers often discover that comparable units in the same neighborhood are under contract for lower prices after they have already signed their own agreements. This can happen because buyers are seeing similar properties go under contract at different price points, which can make them question whether their purchase represents a fair deal.

This uncertainty underscores the importance of proper education and guidance from agents before and during the buying process. Without sufficient market context provided upfront, buyers may not fully understand why pricing differences exist or how to assess the value of a property, leading to second-guessing and potential contract walkouts. Providing this clarity early is critical to helping buyers feel confident in their decisions and reducing post-contract hesitations.

The broker notes that this problem is exacerbated by the current inventory environment, where buyers have more options to compare but may not understand the nuances that justify price differences between similar properties.

The Uncontrollable Factors

While Zangrilli stresses the value of thorough buyer education, she acknowledges that some reasons buyers back out of contracts are beyond an agent’s control. Personal fears about broader political and market conditions can influence decisions in ways that no amount of guidance can fully address.

She notes that uncertainty – both nationally and within Florida – can cause buyers to hesitate, with concerns ranging from potential tax changes to job stability and overall economic conditions. These psychological factors often play a significant role in post-contract indecision.

Nonetheless, Zangrilli argues that careful upfront qualification can help identify buyers who may be particularly sensitive to these uncertainties. By asking detailed questions about employment status, retirement plans, and long-term intentions, agents can better understand a buyer’s mindset and anticipate potential challenges before entering into a contract.

Market-Specific Dynamics

Zangrilli notes that walkout patterns vary significantly between markets. In Naples, where many sellers “don’t have to sell” due to multiple property ownership, the dynamics differ from working markets like Jacksonville where sellers face more urgent timelines.

“Some folks have two and three and four homes, and that’s where I think you see the prices, especially on the single family home, staying so strong,” she explains. This creates a unique environment where buyer education becomes even more critical, as sellers have less flexibility on pricing and timing.

The Solution Framework

Zangrilli notes that many sellers in markets like Naples own multiple homes, sometimes two, three, or even four properties. She explains that this level of ownership contributes to single-family home prices remaining strong, as sellers are less pressured to make concessions or adjust pricing quickly.

Her firm’s success in avoiding the broader walkout trend suggests that the industry’s 18% failure rate may be more preventable than many professionals realize. The key, according to Zangrilli, lies in treating buyer education as a qualification tool rather than a post-contract necessity.

As Florida’s market continues to evolve, Zangrilli’s experience suggests that agents who invest in comprehensive upfront buyer education may find themselves with a significant competitive advantage in an environment where deal certainty has become increasingly valuable for all parties involved.