Purchasing Your Home in South Florida - Realty verses Fantasy

Today we are in the Covid-19 Era where there is a one month's supply of inventory. This means you need to make your best and final offer the first time. Yes we pull up comparable properties and check to see the home you like is not way over an appraisal price. The market has changes considerably. and buyers need to be prepared. 

Any major purchase requires research, careful analysis, consideration, and thought. Home buying isn't any different! Determining the right location, the number of bedrooms or bathrooms needed, and outdoor space is the easier things. However, there are many other factors to think about in your home search. From your initial search to the moment you get the keys to your new home, I will be there, guiding you through the process. I am happy to help connect you with mortgage professionals to get the best rates. 

As an area expert, I can help educate you on the different neighborhoods, schools, and other local community amenities that suit your lifestyle.

I walk you through the home buying process. For example you may have found a home where the seller has a tax certificate on their property. A tax certificate occurs when the seller did not pay his annual property taxes. This tax can be paid off at the closing table.

Home Owner Associations (HOA) usually charge a monthly or quarterly fee for the upkeep of the  common areas and amenities of the community. HOA fees are prorated at closing so if the seller paid for more days than anticipated, the seller will receive a credit.

The home may have a PACE lien for Energy improvement projects where a contractor has secured the loan for the improvement by placing a tax lien on the property. The amount due is collected through the sellers tax bill. This is a seller fee that the seller needs to pay at closing.

The home may have a Community Development tax (CDD) applied to the property. Community Development Districts are written in the Florida Statutes 190.002. A (CCD) Community Development district is a method the developer uses for financing the infrastructure on a new community that is in the process of being built. The infrastructure includes: electrical, roads, sewer systems, sidewalks, play grounds ,community pools, tennis courts, water parks, etc) into the cost of each home site. The homeowners are intended to benefit as the homes are initially expected to be lower in cost.  

The developers places this CDD cost into a BOND. The developer makes the payments to the CDD for all of the homes in the community that they own until they have sold all of the home sites. The Bond payments are then transferred to the new home owner in the form of a non-ad valorem tax payment. Check out the property taxes and you will discover the CCD in a community is listed as a non-ad valorem tax.  A Community Development is a way to finance a communities infrastructure with Bond money and the owner of the property pays this tax for up to 30 years. 

A few nearby CDD communities are:  Monterra in Cooper City, Bonterra in Hialeah, Walnut Creek in Pembroke Pines, Mira Lago in Parkland, and Watercrest in Parkland.

Membership Fees- Certain Golf Communities and Country Club communities have initiation membership fees.

Each issue in the home buying process is explained to my buyers so they understand what they are buying and how to move forward with their decisions.

Home Buying Can Be Easy
As your buying agent, I can help streamline the process of buying a home and make it easier for you. I’ve aligned myself with the top professionals in the industry, and once an offer has been accepted, I will personally help facilitate the process to close on the home. By working closely with mortgage brokers, title and escrow companies, home inspectors, and home warranty companies I will provide you with the best service possible!

Buyers Expenses:

Appraisal Fee - the cost of having a certified appraiser value the home you are purchasing. A uniform appraisal report is necessary when a home buyer is purchasing a property with a mortgage. After the housing market collapse in approximately 2007 with lenders going into bankruptcy, a new way of selecting appraisers was formed. Now, an impartial third party selects the appraiser. Appraisers will compare the property they are appraising to other sold properties. They will also take into consideration the condition of the property.

Inspection Fees  -cover a profession home inspection so the home buyer knows the condition of the property from the inside, outside, roof and checking also for termites. A home inspection usually will take 2 to 3 hours depending on the size of the property. The cost of a home inspection is usually determined by the size of the property. A 4-point inspection cover 4 major issues of a property: the roof, HVAC - ( heating, ventilation, and air conditioning system) , the electrical system, and the plumbing. 4-Point Inspections were usually used for older homes. Some insurance companies now use a 4-Point inspection on homes 10 years old and older.

Wind Mitigation - Helps reduce the buyer's insurance fees by checking the structure and year of the roof, attic, doors and windows looking for windows and doors with hurricane panels or accordion shutters or impact windows.

Survey / Elevation Certificate A survey lets the mortgage company or bank know that the property exists as it shows the property lines. A survey let's the new property owner realize if there are any easements. A survey helps the new home owner add in a fence as the fencing company will know the property boundaries of a home. This is also valuable for a swimming pool or tennis court or an addition to the existing home structure, as each property has easements or setbacks to the property lines.

Insurance - Covers damage to your home.  Such damage may result from Wind, Hurricanes, Fire or Flood. Insurance companies are asking for wind mitigation reports and 4-point inspections. Both the wind mitigation inspection and a 4-point inspection may reduce the price of insurance coverage when the inspection passes the insurance requirements. Flood insurance has changed where most of Florida is no longer considered in a flood area. No one can predict a home will flood, as nature has it's own way of handling the environment. For the price of flood insurance it is a recommended precaution.

Title Policy - Florida's title insurance premium is based on a promulgated rate calculation which is determined by the state of Florida. Florida's title insurance premium is also determined based on the purchase price of a property as follows: The pricing is $575.00 for the first $$100,000.00 and $500.00 per every $100,000.00 thereafter.

 The Title Policy protects your ownership of your home. It covers events relating to the title that have already happened. Title insurance covers claims against your ownership in your property due to problems in its "chain of title" or series of historical ownership records for your home.  If the lien is for taxes not paid by someone who owned the house 80 years ago, then you may have coverage under your title policy. Owner’s title insurance provides protection to the homeowner if someone sues and says they have a claim against the home from before the homeowner purchased it

Title Company Fee - the title company will run lien searches, prepare a settlement statement, work with your mortgage lender and get you to the closing table.

Mortgage Fees

Title insurance for the loan (Lender's Policy) 

Credit Report Fee

Doc stamp tax on the note - $.35 per $100.00 of the note amount.

Intangible Tax - $ .20 per $100.00 of the mortgage amount. 

Mortgage Insurance -PMI protects the lender if the borrower defaults on a loan when placing less than 20% for the down payment.

Curious about what’s happening in your neighborhood? You can create a custom market report to see what’s active, under contract, and sold in your neighborhood! 

Considering selling or refinancing your home? Get an INSTANT property valuation now!

Contact us today to find out how we can be of assistance to you!