Practical Real Estate Tips and Advice for Buyers in South Florida

While housing prices in the state of Florida have been rebounding, there are still a lot of good bargains you can find, and for the experienced buyer, this is rarely a problem of consequence, regardless of market fluctuations.

The great news is that, even as a “newbie” buyer, you can get ahead quite easily and land an excellent deal with a little knowledge about real estate purchases, as well as by following a few key tips and steps specific to buying a new home in the South Florida area.

4 Steps for Researching a Profitable Deal

Buying real estate is never easy, whether you’re a seasoned or first-time buyer. Because of the magnitude of the long term investments involved and the large number of small details which could have significant consequences in the long run, you’ll need to take special precautions from the very start and keep your real estate agent close, while staying informed about the entire process.

Following are a few of the most important aspects you need to focus on while trying to find a good deal on your purchase:

The first thing you need to do is to check comparable home selling prices to see exactly what you’re up against. Your agent can provide you with information on selling prices for homes similar to the ones you’d consider, and real estate listings can also give you a fair assessment of what you can buy.
Find out exactly what you can afford. This doesn’t just mean looking up how much you can receive from a lender based on your current financial situation, credit rating and various other factors; you will also need to pay attention to the specific policies that different lending companies have when it comes to interest, down payments and fees.
Ask your agent to help you calculate a detailed estimate of all the additional costs you may have to pay before – and during – the settlement. This includes learning about taxes and insurance, origination fees charged by the lender, title and settlement fees, as well as the various mortgage and tax deductions you may be eligible for.
Finally, keep in mind all the investments you will need to make in the long run – such as repairs, housing costs and mortgage payments. Try to find out whether or not your investment will exceed 28-30% of your income. While you might expect your salary to grow overtime, it’s still good to have a “safety buffer” in case you may need to bounce back after a period of financial difficulty.

The Price and Value of Your New Home

The real estate market is in constant flux, and it is often hard to determine whether or not you can get a better price on your purchase. Details aside, the average cost for houses and condos in South Florida can be even twice greater than that of low-cost homes – which, however, are more and more difficult to find.

As such, you always have to be careful about where your investment goes, since lower prices stay low for a reason, and you will likely need a thorough assessment of the home’s value before making an offer. This is precisely when a home inspection is most crucial, since it may reveal hidden issues that could require costly repairs.

Also, the location, size and age of the home, as well as whether or not the roof, plumbing or electric system have been reviewed in past years, will give you a good assessment on what it will be like for the future resident to actually live in it.

Dealing with Housing Costs and Mortgage Payoffs

Housing costs also represent a highly debated issue when it comes to becoming the owner of a new home. Depending on the mortgage interest you’ll need to cover, the amount you will eventually have to pay on taxes and insurance and the additional expenses associated, for example, with renovating tasks, will all have to be considered very carefully before accepting just any offer.

While paying the mortgage will not always be a problem, especially if you provide an extensive upfront payment – making it easier to build home equity – tax and insurance escrow can sometimes even double your mortgage payment.

The best course of action would be to ask your agent about whether or not you may qualify for tax exemptions and similar advantages before choosing your mortgage.

Home Insurance

Acquiring home insurance is a necessity for every new homeowner. The bad news is, you’ll actually need a policy before you can get your loan, and some policies can be very tricky, referring to issues such as “replacement costs” that may not be able to cover everything you need.

Always ask your insurer about a lot of potential “what if” scenarios before selecting the type of insurance you want, and consider learning as much as possible about the deductible amount, which will play a major role in determining your overall insurance costs.

Your Realty45 Inc real estate agent will be able to provide you with a lot of additional tips depending on your budget and level of coverage required. As long as you keep a constant eye on the bigger picture, you will be able to make much easier and more informed decisions on your real estate purchase.