Buyers Guide for Realty in USA

Where in Florida would you like to be located?

The major attractions of Orlando are well known with its ever-expanding attractions and nightlife. Miami has a exciting pace of life and extensive beaches. However the east coast of Florida on the Atlantic is extensively developed. The Gulf Coast on the West side of Florida has a more relaxed pace of life, is less developed and is well known for its overall quality of life. Where can you obtain independent objective advice, on the destination that matches your lifestyle without the froth and hype that accompanies the up beat attitude of buying into the American property market?

It is really important to choose a location before considering a property in Florida. So many Brits are swayed by attractive property details and off plan models and pay insufficient regard to the longer term implications of the specific location and area the property is constructed in - remember it is the land rather than the house standing on it which appreciates in price.

Use an agent who will provide you with detailed information on where you are considering buying, and comparative market data on houses in that area. Very attractive waterfront properties are being built throughout Florida. However some houses being advertised, although attractively priced, are in unattractive locations with very few amenities. This is not clear unless you have visited the area as I discovered when I took a look at some new developments as they were being built. I make a point of regularly visiting new properties on the market to separate the marketing hype from the facts. Once you are ready to make an offer on a house, your agent should provide you with detailed market information, of recent property transactions in your selected area. This will provide you with a firm basis upon which to make an offer.

Know what you want from your property If you are a keen sailor and want a property on water will you be allowed to construct a boat dock? Some water is too shallow; in certain areas a boat dock may not be allowed or limited to a size that will not accommodate that dream boat. If golf is important do not automatically assume because you have bought a house on a golf development that membership is included, on some developments it is, on others there are extra costs involved of several thousand dollars.

Are your reasons for buying determined by investment considerations, permanent relocation, a seasonal second home for your own use or will you want to rent the property out when not making use of it yourself? You can find examples of Brits who have bought property for these various reasons on http://www.AndrewBartlettFlorida.co.uk

You need to consider

The number of bedrooms and bathrooms.
If you intend to use the property for rental purposes this may affect the size required.
Do you require a pool or is there a community pool?
Is a screen area necessary to avoid the insects?
What are the implications of a lake or waterfront lot? What are the implications of gated communities?
Be aware of zoning regulations If you want to rent your home for certain periods of the year you need to know certain communities and counties have different zoning requirements. As an example some allow two week rentals others prescribe a minimum of four weeks or even six months, which will effectively limit the people who will rent your property. If you are told do not worry about these regulations they don't matter, or no one will notice how long you are renting for - put the phone down, or walk out of the Agency - every year numerous unsuspecting Brits are fined, receive citations and in exceptional cases have lost their properties by ignoring zoning requirements. Just as bad as receiving poor or misleading advise from an inexperienced or dishonest Agent is receiving no advice and deciding to make your own purchase. The largest amount of correspondence I receive in my advice column on www.AndrewBartlettFlorida.co.uk relates to Brits who have bought a property themselves from a developer, or a signboard. Frankly this is playing with fire particularly as the property buying system in America allows you to use the service of a well qualified, experienced Buyers Broker who has worked with thousands of Brits in the past at no cost to you.
How much do you want to invest?

There is a vast selection of properties ranging in price from $250,000 to $4,000,000 plus. Expenses on completion of the contract include (I will provide a complete cost breakdown when all the details on the price of property to be purchased and size of the mortgage are known) Mortgage application fees negotiable depending on type of mortgage. Mortgage tax stamps Appraisal valuation fees House Inspection fees Title fees (an insurance policy that protects a lender's or owner's interest in the property from other claims of ownership) an approximate figure for this policy is $625 for a $100,000 property. In the USA some mortgage companies also charge a one off payment called points when you take out a loan, the advantage or disadvantage of this payment depends on your individual circumstances. Please contact me for more information on this particular charge it is important for you to be given ALL THE DETAILS. Monthly Payments Mortgage: - approximately $765 in the example above (in certain situations mortgage payments are tax deductible) Insurances: -property and household items Property tax: - depends on value of property Homeowner Association fees:- if applicable Pest Control Water bills Electricity bills Lawn and Pool care if applicable Phone charges TV cable rental

Be very cautious of any guarantees of rental income It is not possible to guarantee rental income there are far too many imponderables. However once the type of property selected is known, more detailed estimates can be provided. These will depend upon rental zoning regulations, which affect periods of rental.

How will I furnish my Florida Property?

Some very competitive packages are available to fully furnish and equip your home. If buying a new property there is no advantage buying directly from the builder. You really do need a separate agent whose commission is covered within any builders' fees to protect your interests. Show houses can be up to double the basic list price of a model and the list of extras can resemble the casting list of Ben Hurr! Where is your house going to be on the development? will you be surrounded by bulldozers for a few years? Is that beautiful lake behind your house dry in the summer? When a buyer does or says the wrong thing when visiting a new home it can cost the buyer thousands of dollars. Developers have large advertising budgets to attract you to their show houses, staffed by agents working for the builder or developer. Many of the features included in the show house are extras that are not included in the base price. You may not have the experience or knowledge to ask the right questions and unless you ask you may not be told!

To protect your buyers' interest always state you are being represented by your own agent before looking at a new house model house or open house. Never give your name, address, phone number or sign a guest register. Once you give any of this information verbally or in writing you have given up your rights for buyer representation, therefore you do not have your own agent to help you buy that particular property at the best terms for you, with as many extras as possible. Remember the sales staff are representing the builder; they are experts at negotiation and can create a fear of losing the property if you do not buy right away. They will not necessarily tell you if their company has too much stock and needs to reduce prices or if the development is under the flight path of an airport, for instance.

Resale houses can represent very good value for money they often have extras and are usually in immaculate condition. However it may not be in your interest to buy directly from the Realtor who is listing the house. If, for example, you see a house you like and begin discussions on that house with the Realtor listing it you are unable to use your own Realtor to represent SOLELY YOUR INTERESTS. If you had your own Realtor you should be advised of any clauses that are in your sole interest to be inserted. For instance your own Realtor could negotiate that certain appliances be replaced in an older house or certain extras be included in a new house. How likely is that to happen with a Realtor representing both parties?

The tax implications of buying and renting property these need to be examined and again will depend upon individual circumstances. Buying a property in Florida can be an excellent investment as well as giving many years of idyllic holidays but DO NOT assume that because we speak the same language that the system is the same. Unless you receive advice from an agent familiar with both the British and American systems problems and misunderstandings can and do occur.

Following 20 years as a British Chief Government Officer, Andrew Bartlett relocated to Florida heading the British property team with Coldwell Banker, and then the International Team with Remax Properties the world's largest Real Estate groups. A Certified International Realtor, member of Florida Association of British Businesses and Chamber of Commerce, he writes articles on Florida property trends, has constructed a Florida property consumer web guide and advises British clients on locations, properties and investment trends. He can recommend experienced local Realtors throughout America. Please contact Andrew if you are thinking of buying or indeed selling a property in Florida or indeed would just like to chat about what is happening at the moment.