Today’s a great day for a refresher on some nuances in a real estate transaction.
Whether you’ve never bought real estate, or it’s your 20th time… things change. With that, here are a few things I’ve encountered with customers that may be good for you to read…
* No, you don’t need an attorney to represent you and your Florida real estate transaction. I say this as my customers had some confusion this week. They’re from New York where attorney’s handle a real estate transaction. After they signed the contract, they have three days to get their deposit sent to Escrow. Escrow is an neutral third party to ensure sellers and buyers adhere to, and fulfill their duties per the contract.
My customer thought they needed an attorney to draft more documents, and get representation. In Florida that’s not needed for a real estate transaction. Our contracts are set by the Florida Association of Realtors and the Florida BAR (or FARBAR). The only thing agents can do with them is fill in the blanks. Beyond that, Escrow ensures all parties named on the contract perform to what’s written. Simple. This saves buyers money by not needing an attorney.
Your Real Estate Transaction Begins Here
* “Why am I being asked to sign a Buyer-Broker Agreement?” If you haven’t looked for property after August 17, 2024, the way you interact with a real estate agent is now formalized. I wrote a lot about this last year. You can read this and this as a reminder.
Over the last five months, here’s how I summarize this big change: as a buyer, you get to negotiate your agent’s fee up front. The seller negotiates with their agent, and you with your buyer agent. This must be established before you step a foot into a property showing. It’s protocol.
Say you negotiate a 2, 3, or 4.5% compensation. Your agent will include that amount with your offer to the seller. And just like the price you’re offering… your agent’s compensation is also negotiable. It’s no longer stipulated by the seller. The seller can accept or negotiate the price and compensation for your agent. Bottom line, it’s now ALL Negotiable.
And from my perspective, it’s more efficient. The conversation is now flowing easier and there is more transparency with buyers.
The Real Estate Transaction – How To Walk Away
* Your inspection period is your grace period to get out of a contract. When you submit your offer to purchase, in section 12, line 261 – Property Inspection; Right To Cancel – it defaults to 15 days. In today’s market, 7 days is customary. It goes on to say, “If buyer determines, in Buyer’s sole discretion, that the property is not acceptable to Buyer, Buyer may terminate this contract by delivering written notice of such election to seller prior to expiration of Inspection Period.”
So, I advise my customers who like a property to “tie it up” before someone else does. This allows us to see what the inspection report says. This is customary practice that allows a buyer to reduce the risk of losing the deal, while getting their house in order and more prepared.
These are some basic, yet important, parts of your real estate transaction I hope you found informative.
(Photo above: A HUGE Banyan tree in Del Ida Park dwarfing the old Spanish-style home)
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*** Are you an investor? Is buying property in the path of development your thing? Buying where money is flowing? If so, I encourage you to click on this
*** Sustainability is on the top of many company’s 2025 real estate trends lists. I write about it often and hope you’ll gain more insight from my essays like this one
*** This month I’m launching a new “show” on my YouTube channel. I call it, “Walking The Ave.” My goal is to show you what’s happening in downtown as it’s changing and upgrading all the time. 3-4 minute snippets, nothing too heavy
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*** South Florida Real Estate Inventory is Now ABOVE 2019***
Last week’s supply was 54,216
Today’s supply is 56,048
That’s a rise of 1,832 units last week
