Buying or selling real estate in Florida is not an easy task. Besides having a great property to sell or buy, there are legal issues to consider. In order to make your transaction go smoothly, it is important to be familiar with all the rules and regulations.
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Inventory
The Florida housing market saw more inventory in November than in October and a higher median sales price. However, sales were down 29% compared to one year ago. Increasing mortgage rates continue to play a big role in determining the level of buyer demand.
Inventory of single-family homes and condo-townhouse units also increased. Currently, there are 3.3 months of supply for both types of properties. This number compares to 2.1 months in November 2021.
Closed sales of single-family homes totaled 17,009 in November 2022. These numbers are down from the record-breaking 1,596 in November 2021. A larger share of luxury sales drove the growth.
The S&P CoreLogic Case-Shiller Home Price Index report shows that prices in Florida have been up more than in any other state. Click the link: https://tradingeconomics.com/case-shiller-home-price-index for more information. However, inflation continues to play a part.
A number of distressed properties have been sold in the state over the last two years. In particular, foreclosures are down significantly. As a result, the shadow inventory has decreased to 550,000 from a high of 550,000 at the end of 2010.
Commission splits
There are three major ways to split commissions between a broker and a real estate agent. Each has its own benefits and drawbacks. It’s important to know how each works.
The simplest method is a fixed commission split. Brokers typically pay agents a percentage of the total commission for each deal. However, there are also graduated commission models. These are more complex.
Overpriced rentals
Florida is one of the most overpriced rental housing markets in the country. Several factors have contributed to this situation, including a lack of available Florida homes for potential buyers. In addition, many would-be homebuyers have chosen to rent instead of buy.
The influx of new workers and residents from other parts of the country has created a shortage in the housing market. Moreover, the rising costs of construction have made it difficult for building companies to add to the supply of homes. As a result, demand has increased, and prices have continued to increase.
During the past year, the average asking rent for a home in Orlando was up 22 percent. The average rent in Tampa Bay was up 21 percent. Miami and Fort Lauderdale were also among the cities with the highest rents.
A recent study conducted by the Florida Gulf Coast University (FGCU) revealed that 10 of the 14 markets with the highest rents are in the state. All ten are overpriced by more than 13 percent.
Researchers found that, overall, the average asking rent for a home has risen by 31.4 percent. In addition, the share of units renting for less than $1,000 per month has decreased by 12 percent in the last decade.
Legal aspects of a real estate transaction
If you are planning to buy or sell residential real estate in Florida, you should know that there are legal aspects you should take into consideration. You may need the help of a qualified attorney to protect your interests in the transaction.
The purchase of a home can be a complicated process. It involves several different documents. Using a licensed attorney can ensure that the negotiations are streamlined.
Real estate attorneys are experienced in handling complex transactions. Their knowledge can help you determine the potential pitfalls in the transaction.
Many buyers and sellers rely on a real estate agent to assist them with the transaction. However, these agents are not allowed to provide legal advice.
Buying or selling residential real estate in Florida can be an important business decision. Whether you are buying or selling a condo, townhouse, or single-family home, there are numerous legal facets to consider. These factors can include zoning regulations, property tax lien, and easements. You can learn more by clicking the link.
Adding a loan to your purchase adds another layer of complexity. When you finance your purchase, you are adding a third party to the deal. This adds risk to the seller.
