As a result of changes made to U.S. tax laws, Florida has become an attractive area for individuals living in high-tax regions seeking to relocate and reduce their liabilities. Wealthy Sunshine State newcomers, however, do not appear interested in purchasing single-family homes.
Whether downsizing or retiring, year-over-year online traffic for large single-family house listings decreased during 2020. Website traffic for condominium listings, however, has grown by about one percent from 2019 to 2020, as reported by Forbes magazine.
Online listings and the required disclosure of information
Pageviews for homes priced more than one-million dollars increased, which may include an interest in luxury condo units. Online listings, however, may not always involve a licensed real estate agent. Accordingly, individuals buying or selling a home online may be well-served by exercising ample due diligence.
Section 718.503 of Florida’s laws requires a condo seller to supply a buyer with several documents. A sale may not proceed without providing a buyer with disclosure, which includes a declaration of the condo along with its association’s bylaws and articles of incorporation. Sellers must also disclose a condo’s recent financial information going back a year and provide a list of frequently asked questions and answers.
Condo transactions and investment opportunities
With an active housing market, investors may find it an opportune time to purchase condos and sell them for a profit. As noted by the Miami Herald, single-family homes accounted for 80% of the housing transactions during the first half of 2020.
While the supply of homes reduces, buyers may gravitate toward condos and drive their prices higher. As provided by Florida law, however, a buyer may rescind an offer or cancel a contract within three days of receiving the required disclosures.