Preparing Homebuyers and Sellers in 2022
Making a move? The real estate market across the U.S. has been highly competitive over the past few years, and it’s a similar story in Naperville.
Demand to buy has been high while supply for properties has been low since 2020. This situation continues to prompt bidding wars on properties going into Q2 of 2022.
“This year looks just as intense as last year with multiple offers on the low inventory of homes for sale,” said James Bernicky, Bernicky Law Firm managing attorney.
Bernicky said some Naperville area Realtors are seeing open house lines of up to an hour. Realtors are fielding multiple offers from eager buyers, which, in turn, drives up the price of homes. Some buyers are making offers on properties sight unseen just to get a seat at the table.
The prices of homes in Illinois are forecasted to continue to grow in 2022, according to data from Illinois REALTORS®. The median home price in Illinois in January 2022 was $238,000, up 5.8% from January 2021.
Interest rates hit historic lows in 2021, but in March 2022 the Fed increased rates to address climbing inflation. Bernicky says this may push some buyers to jump on the rates this Spring before they potentially rise further this year.
Bernicky says edging out the competition can happen in a multiple offer situation, but buyers and sellers need to have their entire real estate team in order before the bidding begins.
A real estate attorney should be part of that team, in addition to a realtor and a mortgage broker or financing.
Should I have a real estate attorney in Illinois?
The short answer is: yes. Here are 4 reasons why home buyers and sellers should have a real estate attorney:
- Buyers and Sellers need a legal advocate familiar with legal contracts working with their interest in mind.
- A real estate attorney navigates through the negotiations on the purchase contract, addendums, rent backs, and post-possession.
- A real estate attorney acts as the liaison to answer any questions you may have, handle inspection issues, lender and title insurance requirements, and create any additional legal documentation needed to close the deal.
- A real estate attorney works with realtors, and lenders to round out a winning team!
What does a real estate attorney do once an offer is accepted on a home?
Once the client accepts an offer (as a seller) or has an accepted offer (as a buyer), they send the contract to the attorney. Each buyer and seller should have their own attorney to act on their behalf.
- The attorney has 5 days to review the contract and send back any modifications or clarifications to the other side.
- Each party’s attorney advocates for their client until a final agreement is reached.
- Once funding for the purchase is confirmed, either by a lender or in cash, the closing date can be scheduled.
- Prior to closing, the Seller’s attorney will generate legal documents, and review with the Sellers before they sign.
- At closing, the Buyer’s attorney will review Seller’s documents, Lender documents, and Title company documents with the Buyers.
- The Buyers then sign the paperwork, the Sellers receive their proceeds, and the Buyers receive the keys to their new home!
Real estate attorneys handle many other areas of the law regarding properties, including commercial real estate, short sales, deed in lieu, foreclosure, real estate tax appeals, for sale by owner, rent to own, and leases/evictions. For more information, visit Bernicky Law Firm.
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James Bernicky opened Bernicky Law Firm in Naperville, IL in 2010. In addition to overseeing the firm, James focuses on the practice areas of residential and commercial real estate, bankruptcy, business law and contracts, entertainment law, wills and trusts, and intellectual property including copyrights and trademarks.
James is admitted to practice law in the state of Illinois and the Northern District of Illinois and is a proud member of the DuPage County Bar Association, the Illinois Bar Association, the Naperville Area Chamber of Commerce, and the Naperville Chamber Young Professional’s Network. He earned his Juris Doctorate at The John Marshall Law School in Chicago with a certificate in Intellectual Property.
About Bernicky Law Firm
Located in Naperville, the attorneys and staff of Bernicky Law Firm are dedicated to providing excellent legal services for people and businesses in the greater Chicago area and across Illinois. The firm handles legal matters in residential and commercial real estate, family law, bankruptcy, litigation, business law, copyrights and trademarks, entertainment law, traffic, and estate planning. ThreeBestRated.com named Bernicky Law Firm the Top Real Estate and Bankruptcy Lawyers in Naperville for the 5th year in a row in 2022, and the firm is a 5 Star lawyer from 5Star.lawyer. For more information visit their website.
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