9 Common Contract Mistakes That Could Cost You Thousands in Real Estate Deals

Navigating the real estate market in Florida can be challenging, especially when dealing with a 13-page contract that includes up to 32 possible addendums. Making a mistake in these contracts can result in significant financial losses. As a seasoned real estate agent with over 20 years of experience in Palm Beach and Broward counties, I've seen it all. In this blog, I’ll highlight nine common contract mistakes that buyers and sellers often make and how you can avoid them.

1. Missing Appliances

On the first page of the standard "As-Is" Florida contract, all appliances included in the sale are listed. However, two critical items are often overlooked—the washer and dryer. If these are not explicitly mentioned in the contract, the seller can legally take them, leaving you with an unexpected expense. To avoid this, add the following phrase to lines 21 and 22: "All attached appliances and fixtures, including the washer and dryer and hurricane shutters if any and if present during the showing."

2. Invalid Commission Request

Contracts often include an invalid modification to the MLS compensation offer, a mistake I see in about 80% of contracts. According to lines 643 and 644, the contract cannot alter MLS commission offers. If you need to negotiate your commission, ensure it’s done through the correct channels—not within the contract.

3. Refrigerators—Be Specific

The standard contract mentions "refrigerators" in the plural form, which can cause confusion. Sellers may assume they can take a secondary fridge, like a beer fridge, from the garage unless explicitly stated otherwise. Buyers, make sure the contract clearly states which refrigerators stay. Sellers, if you plan to take a fridge with you, be sure to indicate this on line 24 of the contract.

4. Permits

Active, inactive, or expired permits are not automatically cleared unless specifically stated in the contract. If you're buying a property, ensure the seller is responsible for closing any outstanding permits by adding this requirement to the contract. Otherwise, you might be stuck dealing with unresolved permits long after the sale.

5. Title Policy

Title policies protect buyers from title defects, but who pays for the title policy can vary by county. In Palm Beach County, the seller usually pays, while in Broward County, it’s typically the buyer. However, this is negotiable. Considering the costs—$2,750 for a $400,000 property, $3,575 for a $700,000 property, and $5,750 for a $1 million property—this is not a small detail to overlook.

6. Home Warranties

Home warranties are optional but can be a lifesaver. They cover repair costs for appliances that break after the sale. For buyers, checking this box is a smart move. Sellers, offering a home warranty can be an attractive selling point, especially if your appliances are older.

7. Mismatched Contracts and Addendums

In Florida, most real estate transactions use the "As-Is" contract, but some agents mistakenly attach addendums from the "CRSP" contract, rendering the contract invalid. Ensure that your addendums match the contract type to avoid any legal loopholes that could void the agreement.

8. Acceptance Dates

A common error occurs when the contract’s acceptance date doesn’t align with the final negotiation date. If your negotiation goes past the original acceptance date without updating it, the contract could be invalid, potentially giving the other party an easy out.

9. Special Assessments

There are two critical areas in the contract regarding special assessments—one in the main body and one in the HOA or condo addendum. Municipal assessments differ from HOA assessments, and many people get these mixed up. Failing to specify who pays for assessments could leave the buyer on the hook for unexpected costs after closing. Always review the estoppel letter from the HOA for any ongoing or pending assessments.

Final Thoughts

These nine mistakes can have costly consequences, but they’re avoidable with attention to detail. Whether you're buying or selling, being aware of these potential pitfalls will help you navigate the process more smoothly. If you’re considering a move to or from the Palm Beach or Broward County areas, don’t hesitate to reach out. My team and I are here to help you through every step of the real estate process.

How to Use Data Analytics to Boost Your Real Estate Sales?

In today’s fast-paced real estate market, staying ahead of the competition is more important than ever. One of the best ways to do that is by using data analytics. By digging into the numbers, real estate professionals can make smarter decisions, spot emerging trends, and fine-tune their strategies to better serve clients. Here’s how you can use data analytics to give your real estate sales a boost.

1. Spotting Market Trends

Data analytics gives you the power to see where the market is heading. By looking at past data—like property prices, how many homes are available, and how quickly they’re selling—you can identify trends and predict what might happen next. This means you can offer better advice to your clients about when to buy or sell, set realistic price expectations, and focus on areas with growth potential.

For example: If the data shows that home prices in a particular neighborhood have been steadily increasing, you can highlight that trend to potential buyers, positioning properties there as solid investments.

2. Reaching the Right Audience

Understanding your audience is key to successful marketing. Data analytics can help you break down your audience into specific groups based on factors like age, location, online behavior, and past purchases. This allows you to create targeted marketing campaigns that speak directly to the people most likely to buy or sell through you, increasing your chances of making a sale.

For example: If your data reveals that first-time homebuyers in their 30s are actively searching for homes in a certain price range, you can tailor your marketing efforts to promote listings that fit their needs.

3. Making Listings More Attractive

A great property listing can make all the difference in attracting buyers. Data analytics can show you which listing features—such as certain keywords, photos, or descriptions—get the most attention. By analyzing how people interact with property search websites, you can learn what makes a listing stand out and use that knowledge to make your own listings more appealing.

For example: If data indicates that listings with virtual tours get more views, you might want to prioritize creating virtual tours for your properties.

4. Improving Client Experience

Providing a personalized experience can set you apart from the competition, and data analytics can help you do just that. By tracking how clients interact with your website, emails, and social media, you can get a better understanding of what they’re looking for. This means you can offer more tailored recommendations and communicate more effectively with your clients.

For example: If a client frequently checks out properties with large backyards, you can send them listings that feature spacious outdoor areas, showing that you understand their preferences.

5. Predicting Sales with Data

Wouldn’t it be great to predict which properties will sell quickly and at what price? With predictive analytics, you can. By analyzing various factors—like market trends, property features, and buyer behavior—you can make educated guesses about how a property will perform on the market. This helps you set realistic expectations and strategize more effectively with both buyers and sellers.

For example: If the data suggests that a home in a hot market is likely to attract multiple offers, you can advise your seller to be prepared for a bidding war.

6. Setting the Right Price

Pricing a property correctly is crucial, and data can help you get it right. By analyzing recent sales of similar properties, current market conditions, and buyer trends, you can determine the best price to list a home. The right price can attract more interest and help the property sell faster.

For example: If recent sales data shows that homes in a certain area are selling quickly at a particular price point, you can price your listings competitively while still reflecting the current market.

7. Tracking What Works

Using data isn’t just about making decisions; it’s also about measuring the results of those decisions. By setting goals and regularly reviewing your data, you can see what’s working and what’s not. This ongoing process helps you tweak your strategies and improve your results over time.

For example: If you notice that one of your marketing channels consistently brings in more leads, you can focus more resources on that channel to get the best return on investment.

Conclusion

Incorporating data analytics into your real estate strategy isn’t just a nice-to-have—it’s a must. By leveraging data, you can make smarter decisions, connect with the right clients, optimize your listings, and ultimately close more deals. As technology continues to advance, using data in real estate will only become more essential. So start integrating data analytics into your daily operations, and watch it transform your business for the better.