Before Buying a Home in Florida

Know What You're Getting Into

It happens in Florida all the time! People come and visit our beautiful area of Southwest Florida, fall in love with it, and race out to buy their piece of the dream. This is especially true when it comes to the many new condominium complexes that are everywhere along Florida's Gulf Coast. They look at the brochures, view the pictures, visit the site and immediately sit down and write a contract. But, wait! You need to know some things before you buy a home in Florida. If you don't know exactly what you are getting into the consequences can become very costly. Thus, having a knowledgeable and trusted representative who can advise you about asking the right questions could save you thousands of dollars in closing costs and lots of "Buyer's Remorse".

The most important advice we can impart to our clients is simple, "...buying your dream home in Florida should be exciting and enjoyable..." but get lots of knowledge first. You'll find it right here on our website - it's filled with information pertinent to purchasing a home in Southwest Florida.

Florida is a High Closing Cost State

Most buyers don't realize that Florida is classified as a "High Closing Cost" state. By the time you've met someone knowledgeable in this area you may have already signed a purchase contract and have no idea just how expensive it is to close on your new property, especially with builders and developers, or by working with a listing agent who represents the seller's interest. That's why it's so important that you have your own representation.

Purchasing New Construction

Usually, the builder/developer expects you to pay the documentary stamp taxes, the owner's policy of title insurance, a pre-set amount into the "cap" fund, and perhaps a 1.50% fee for "his" costs. On a $300,000 purchase, these fees easily amount to $10,100 in closing costs that are mostly negotiable. Knowing how to negotiate the best and fairest deal possible is the expertise the Realtors® of Gulf Coast Associates will assist you with when you decide to purchase. And, remember - builders and developers "cooperate" with agents...they expect you to come with one and are grateful when you don't.

Also, new home buyers should be aware! Your builder can't make a part of your new home purchase contract include that you are required to use their preferred mortgage lender or title company. It is a violation of both RESPA and FTC guidelines to require such conditions. The bottom line is that builders can entice you with incentives, but they can't threaten you with them. If you do feel threatened, file a complaint. For complaints on high-pressure tactics call RESPA Enforcement at 202-708-0502 or email them at hsg-respa@hud.gov.

Deed Restricted Communities

Purchasing a home in a deed restricted community may seem very confusing at first. Many homes and condos in Southwest Florida are in planned developments, both gated and un-gated. These types of communities are governed by homeowner's associations where the residents are required to comply with the recorded documents for how the property may be used. This is especially important when considering whether you may rent a second home, keep a beloved pet, or the number of guests you may have at one time, to name just a few. The term for this type of community is "deed restricted". The documents require that you comply with the rules and regulations of the community and pay some amount of fee for the upkeep and maintenance of the project.

In Florida if you buy a new construction condominium you have fifteen (15) days to review the documents and decide if you wish to proceed. If it's an existing condominium then you only have three (3) days. Both of these time periods are from when you receive a copy of the documents to review. Do not waive this time period – even if you need an attorney to review them – these documents control how you may use your property in the future and what you will be required to maintain.

These are just "some" of the issues you should be aware of before you decide to buy a home in Florida. With Gulf Coast Associates acting on your behalf, and as your trusted representative, you'll have someone on your side to guide you through the process. And, we'll be representing you – not the Seller or Builder! We can assure you'll avoid those pitfalls you may negotiate when you write the contract - as opposed to trying to change it after it's signed.

More Florida Home Buyer Information

For information on other Southwest Florida real estate related topics, please use our Buyer's Library or feel free to contact us directly. We'll be glad to help.

Florida Home Closing Costs - 2010 Survey Results

Florida Home Buyer and Seller Characteristics - A 2009 Review

Did All Florida Housing Prices Really Suffer From The Free Fall?

Purchasing a Condo? Mortgage Financing Tougher Than Ever Before

Buying Properties on the Courthouse Steps Not What You May Think

Foreclosed Home Purchases - Buyers Be Aware

Southwest Florida Buyers Library

Each Includes In-depth Topic Discussion

Real Estate Terms Glossary Index