The process of buying real estate in Florida is markedly different from many other states, especially those located in the Northeast. It will be extremely helpful to review this outline so you’ll know what to expect. I will be available to offer additional guidance and advice to you throughout the entire process.
(1-2 days, if applicable)
Know how much you can afford before you spend it.Resale homes generally require a 10- 20% down payment. I work with experienced, trustworthy lenders whom I can refer you to for a variety of mortgage options.
(1 – 8 months)
The amount of time spent on your home search will depend on your specific criteria. The average homebuyer views 15-20 homes before choosing one. However, by taking advantage of this website’s search features, homebuyers can narrow down the average number of homes viewed in person to between 6 and 8 before finding the right one.
(1 day)
Everything is negotiable, but it is important to recognize any mandatory membership requirements and/or exclusions noted in the property’s listing. In Florida everything “attached” (i.e. window treatments, light fixtures, built-ins, appliances) stays with the home unless specifically stated as an exclusion in the listing.
Unlike many other states, real estate agents in Florida regularly prepare contracts in accordance with the buyer’s wishes on state approved contracts (see sample Florida contracts). Buyers have the ability to include an “Attorney Review” (typically a 3-5 day period) if they desire through an “Addendum to Contract” stipulation. Other possible contract contingencies include: financing, closing date, purchase of furniture, percentage for repairs and condo association approval. In Palm Beach County, Title Insurance is customarily paid by the Seller. Buyers sign the contract and supply an initial deposit check which is placed in the brokerage escrow account.
(1-3 days)
The buyer’s agent routinely submits the contract and copy of the initial deposit check to the seller’s agent. However, the “offer” may also be presented by the buyer’s agent in a face-to-face meeting with the seller. Any and all counteroffers are presented to the buyers and sellers for their consideration and approval through their agent. A contract is binding only after both parties sign it.
(if applicable, 3 – 6 weeks)
Mortgage applications cannot be processed without a binding contract. The lender will issue a commitment letter upon completion and approval of your application.
(7 – 20 days as stipulated in contract)
It is strongly recommended that all buyers have a home AND wood-destroying organism (e.g. termites) inspections through a Florida licensed home inspection company. This is true for both Contract to Purchase and “As Is” contracts. Depending on their availability, it is recommended that the buyers be present for the inspections (I am always present on the buyer’s behalf during inspections).
As mold is an issue of concern in Florida, licensed home inspectors look for evidence of mold during their regular inspection process. Depending on their findings, buyers may elect to have an additional mold inspection and/or tests conducted by a Florida licensed mold inspection company.
In accordance with the provisions of the Contract to Purchase and/or Mold Addendum, the buyer’s agent negotiates the maximum repairs allowable on the buyer’s behalf.
(if applicable, 1-3 weeks)
Typically, a short application and fee are required. Actual association interviews are rare. The completed package is submitted to the managing agent of the association.
(if applicable, 1-3 weeks)
If membership in a country club is a requirement of purchase, buyers must complete an application prior to closing. I will contact the club’s membership director on your behalf and this individual works directly with you to complete the process.
(1-3 days)
I coordinate the date and time of the closing with the buyers and sellers’ closing agent. A “walk-through” is usually scheduled the day of the closing. In the event that the buyers have elected a “mail-away” closing, I conduct the walk-through on their behalf.
There are federal regulations regarding the purchase of real property in the United States from foreign sellers. To prevent foreign sellers from avoiding the payment of taxes due on the sale of real property, the IRS requires that buyers withhold 10 percent of the gross sales price (including cash paid and any debt assumed by the buyer). The buyer must report the purchase and pay the IRS the amount withheld. There are a few exceptions to this rule and I encourage all buyers and sellers in these transactions to consult a tax specialist.
If you would like more information about any of the steps in this process, please email me or call me at: 561.352.5214
Some people question why a real estate agent is needed for the purchase of a new construction home. As independent real estate agent I can provide you with invaluable information including:
(1 – 8 months)
The amount of time spent on your home search will depend on your specific criteria. The average homebuyer views 10- 15 model homes before choosing one. However, by taking full advantage of this site’s search tools, homebuyers will narrow down the number of homes viewed in person to between 4 and 6 before finding the right one.
(20 – 30 days)
A new construction contract is a two-step process. The first step, completed by the on-site sales agent, delineates the buyer’s lot site and model selection. An initial deposit will be required.
The second step is the completion of the builder’s standard contract which is usually executed within 20 – 30 days. At this time, the balance of the customary 20% down payment is required. In addition, depending on the builder, buyers are expected to pay 50% to 100% of the cost of upgrades.
(1 – 2 years)
(if applicable, 3 – 6 weeks)
Mortgage applications cannot be processed without a binding contract. The lender will issue a commitment letter upon completion and approval of your application. Most developers offer incentives if their preferred mortgage company is used.
(1 day)
Builders provide buyers the opportunity to inspect their home prior to closing. A “punch list” of repairs or corrections to be completed prior to closing is created. While it is strongly recommended that the buyers be present, an inspection by a Florida licensed home inspection company can be substituted in the event that the buyers are not available.
(1 day)
Typically the builder’s real estate attorney and Title Company schedule and prepare the closing documents. While the builder’s closing documents are standardized, the buyers, for their own assurance, may elect to hire a real estate attorney to conduct an independent title and HUD statement review for a nominal fee.
If you would like more information about any of the steps in this process, please email me or call me at: 561.352.5214.
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