LEGAL ALERT!

July 31, 2013

EDWARD P. JORDAN II, P.A.

Attorneys & Counselors At Law

1460 East Highway 50

Clermont, Florida, 34711

Tel:  (352) 394-1000

Fax:  (352) 394-2999

Email:  Edward@epjordanlaw.com

 In an effort to provide you continuing legal services and keep you abreast of developments that may impact you and your families, I am providing you the following Legal Alert on the evolving real estate market.

          For the first time since December 2008, the median price of existing homes has risen to $153,000.00, which is a 22.40 percent increase over last year prices for the same time period!  The increase in sales prices is mostly attributable to lack of inventory and low mortgage rates.  Our research indicates that prices should continue to rise and may eclipse $160,000.00 by November, which may result in even higher prices if people feel they will be pushed out of the market.  This scenario poses significant legal issues of which we all need to be aware.

          Because it is a seller’s market, there is very real risk that the market will implode as it did in 2006 – 2008, which resulted Florida being the epicenter of foreclosures because people purchased homes they could not afford and banks made loans to unqualified buyers.  There were other unintended consequences such as insurance premiums and real estate taxes skyrocketing because of the increased appraised value of property and the banks not being able to make loans due to their inventory of sick or non-performing loans.

          If you are in the market for a home, be cautious, as there may be a push to sell you a home today because of the anticipated increase tomorrow.  Likewise, you will hear that mortgage rates will rise that you should get your home now while the going is good.

          With this understanding, you need to approach this evolving market with caution.  Remember, the economy is still on thin ice.  Unemployment remains over 7% and many people remain underemployed.  Any disruption in the economy, such as a spike gasoline prices or another stock market collapse could take us back.  Likewise, there is still a large inventory of bank distressed and foreclosed properties that are not yet on the market and even though prices have risen, June sales in central Florida actually decreased.   There are other economic indicators that confirm the economy is not yet on a firm footing and the economic growth remains a than 2% a year.

          So here is where we are.  If you are in the market, be cautious.  Before you sign a contract to sell or buy, contact our firm and we will review your contract and discuss the various options you have in selling or buying.  The contract will dictate your rights and responsibilities, and with realtors drafting contracts you lose the ability to see the legal nuances that could jeopardize your ability to cancel or enforce the sale.   Our firm can also close your sale and save on fees and costs otherwise charged by title agencies and provide you the legal guidance to ensure there are no hiccups in the sale.

          Remain cautious and keep your ear to the rail.

          Sincerely,

          Edward P. Jordan II

          For the Firm