Buying Florida Property
The purchase of Florida property is different to that in Europe with terminalogy being somewhat confusing. It is important to enlist the support of a licensed real estate professional who understand the needs of foriegn investors and also can work within the State guidelines for real estate transactions.
You will here hear the word Realtor and Agent used a lot in Florida and you may think that they mean the same thing. Agent means a State licensed real estate agent, someone who has passed the State exam's and is licensed to sell real estate in the designated State. A Realtor is a State Licensed Real Estate Agent who has taken the time to join the National Association of Realtors and who is governed not only by the State Laws but also by the Associations very strict Code of Ethics.
As Realtors we have access to the Multiple Listing Service (MLS) which enables us to search and locate your dream home anywhere in the USA. So working with us benefits you greatly and provides a reassurance that you will be treated with the utmost professional manor.
Contract Terms
Once a property has been found and you want to make an offer your we will write a sales contract with terms and conditions which you would like to purchase the property under. This is submitted to the seller / seller's agent for review. These contracts can sometimes go back and forth through a negotiation process, this is normal so do not worry. When the price and terms are agreed upon the buyer is expected to place a small goodwill deposit into an escrow account ($1,000) which would be held by an independant title company. Once the contract is signed it is binding for both parties.
It is very important to be aware of the terms of the contract and the time restraints and make sure that they are met. One of the most important differences between the process of purchasing properties between Europe and Florida that cannot be stressed upon is getting your inspections done within the agreed time scale's.
Financing Your Investment
The minimum deposit for your purchase is dependant upon the bank or financing company you are using. The amounts depend on your status and the appraisal value of the property. If it is a main residance home the deposit will be lower than an investment property that you will be renting out and vacation property which you will use a couple of times each year.
Please visit the Mortgage Page where you will find a selection of providers who have worked with our previous clients. Just click the link and it will allow you to e-mail them directly.
Some short term let communities and condo association developments, the deposit needed can vary greatly. Our advise is you seek advice on the current rates and programs that may be available as they change frequently.
There are several ways in which you can transfer your money over from the UK. Either your current bank will provide a service for you or you can use a foreign exchange company who may give you a better rate. There is also the option for you to hold a US bank account but this is dependant upon the bank you choose in the USA. We would advise that before you move any money speak to your mortgage broker or accountant about the best option for you and how to set up this type of service.
Closing Fees
These are the fess related to the sale and purchase of the property. As a Realtor I can provide an estimated cost of fees and mortgage payments based on amount and period of loan, estimated down payment and estimated closing cost during your home search. But be asured you will receive paper work outlining the exact fees and costs associated with your individual transaction, including a Good Faith Estimate prior to the closing of the deal.
There is no sales tax incurred on either purchase or sale of real-estate but there are certain other State and Local taxes.
It is customary for the seller to pay some of the closing costs, including Title Insurance and Deed Documentary Stamps. In many cases it is possible to negotiate all closing cost as part of the offer but this is dependant upon the property and value
For more information about owning property in Florida contact us at
floridaliving@colinrussellrealestate.com