Flippers are back in Florida

In Brevard County of all homes that have sold in 2013, 9% of these homes have been resold in 2013.   That is really significant and investors are rushing to buy sensing that prices are on the uptick.

Last blog we talked about the listing agreement, one thing we talked about was the escrow deposit.  Each contract should protect both buyer and seller.  This being said when you make a offer and get it accepted time is of the essence.  A good agent will protect the buyer when they make a cash offer with an inspection contingency.  This means that the buyer has an inspection performed by a certified inspector within a specified time period.  The inspection report has to be acceptable in the sole discretion of the buyer.  If not the buyer will notify seller that they are not going forward with the contract or renegotiate the price.  At this point the escrow is returned to buyer with no penalty.

When a buyer is securing a mortgage then you would have a finance contingency.  Usually within 5 days a buyer must make application for mortgage, try your best to use a local lender which is much easier.  The buyer must make a good faith effort to secure the mortgage.  In today's market it is usually safe to allow at least 30 days to obtain loan approval.  In this time period if the mortgage is impossible to obtain then the escrow is returned to buyer with no penalty or we can ask for an extension.

Next time we will talk about when the escrow could be in jeopardy.

Jim Bagwell