South Florida’s real estate market is currently in a state of heightened activity. Not hiring a legal professional to represent your interests when buying or selling your home can result in lost money and time. Real estate legal professionals help ensure the interests of people buying or selling a home are achieved to their fullest potential.
South Florida: A Seller’s Market
Florida has long been known for its tourist attractions and good climate. Analysis of market and population data from Florida Realtors and the U.S. Census indicates that many of those who once visited became so smitten with Florida that they decided to relocate here. According to a recent study by placer.ai, titled US Migration Trends Deep Dive, excluding the Northeast the two most popular destinations between January 2020 and January 2021 for those leaving New York City were Palm Beach County and Miami-Dade County.
High-quality photos and videos from cell-phones taken by real estate professionals have helped these buyers reduce the worries once associated with buying a sight-unseen home while information on the internet helps them learn about the qualities of prospective neighborhoods.
American citizens are not alone in their attraction to South Florida. Foreign investors are also spending billions in the South Florida real estate market. Almost half of those purchases being made are in Miami-Dade, Broward and Palm Beach counties.
This growth in inter-state migration and foreign investment over the past five years has resulted in many significant changes to Florida’s real estate market. The average time to a contract, a measure of the number of days between the initial listing of a property and the signing of the contract which eventually led to the closing of the sale for a single-family home, has decreased by almost four-hundred percent! In 2017, it took an average of forty-five days for a purchase offer to go to contract while now, in 2021, that number is only twelve days. During this same time period the dollar value in sales has tripled and the active listing inventory has been cut in half.
Less home inventory with more buyers doing business at a faster pace means that real estate is now a tight market. This puts pressure on people selling and buying homes. In such circumstances, real estate attorneys can provide valuable services to both parties.
Escalation Clauses: A Response to Tight Market Conditions
There are numerous problems that real estate attorneys can help buyers and sellers avoid, such as issues and expenses associated with unclear titles and inaccurate surveys, inspections with undisclosed fix-ups, and hidden costs. In a tight real estate market like South Florida, real estate attorneys can also help increase the likelihood that a bid for a home will be accepted by including an escalation in the purchase offer.
Escalation clauses allow prospective home buyers to raise their initial offering in the event that other bidders proffer more money. A typical escalation clause includes three parts:
- Requirement of proof of a bona fide offer.
- Escalation amount.
- Price cap.
Although an escalation addendum is not a guarantee that a buyer will ultimately close on the property, it is an effective strategy to make a buyer’s offer stand out from other offers in a highly competitive market. Many sellers like it as it motivates buyers to place competitive bids as well as streamlines the contract paperwork and decision-making processes.
And while this may help, the circumstances of every purchase and sale is unique. Many factors affect your interests. Since the purchase or sale of a home is one of the largest financial transactions a person will make in their lifetime, a prudent strategy for buyers and sellers is to include legal professionals in the process.
Klein Law Group’s Real Estate Professional Services
Florida does not require parties to hire a Real Estate Attorney like many other states do. But whether you are a buyer or a seller, a consultation with an experienced real estate attorney will assist you through the closing process.
At Klein Law Group we offer a free consultation with our Real Estate Attorneys to answer any questions you may have. We are an agent of Old Republic Title and can guide you through your transaction from start to finish, including services offerings such as:
- Negotiating and drafting contract of sale/purchase
- Interpreting legal documents
- Handling all relevant paperwork
- Providing title insurance and escrow services
- Conducting title searches and examinations
- Issuing title insurance policies
- Resolving title disputes
- Overseeing the closing process
- Conducting the closing in-house
Another benefit we offer clients is the convenience of our closing and escrow services. The entire closing process can be done via mail or email, which allows you to complete your transaction without traveling to an office. Should you prefer to complete your closing in person, we have a convenient office location ready to serve you.
Contact a Real Estate Lawyer Now
Call now at 1-561-353-2800 or contact us online for a free 30-minute consultation with an experienced Florida Real Estate Attorney to learn about your rights, including those related to disclosures, inspections and title insurance and to discuss your financial and legal situation so we can create solutions tailored to your needs and goals. We have over 25 years of experience and can assist you with your real estate matter for the best possible outcome.