FOLLOW THE SMART WAY HOME

What are your total costs?

Even if you are paying cash there will be ongoing costs you should consider , the purchase price of a house is not the actual amount you’ll pay. Something you should know is that you won’t usually know the final cost upfront because of the many unknowns that go into this process. But you can get a close estimate, the usual buyer’s closing cost is 5% of the purchase price, this number can move up or down depending on the scenario. Typically, a house’s “total” cost includes the following:

• The property itself: This is the big number you’ll see listed. But be sure to consider the cost of both your down payment and your monthly payments:Smart Realty of Florida will help you, asking how much you’re comfortable with as a monthly payment. Once you have a sense of what you can handle, we can refer you to one of our preferred mortgage lenders and the process begins.
• Inspection: The inspection will help you determine the conditions of the home, its goal is to identify anything that’s not in good working order. It is important to have a professional inspection of your future home to avoid any unseen defects that could have high costs in the future.
• Appraisal: The appraisal amounts to an expert evaluation of the property’s value. Expect to pay anywhere from $400 to $800 for it. (Estimated)
• Mortgage interest:Over the lifetime of your loan, your interest rate can have a significant difference on the total amount you pay for your home. Mortgage interest changes all the time and making the right move and the right time could save you a lot.
• Mortgage insurance: (PMI) If you opt for certain mortgage types (FHA) that require smaller down payments, you may have to pay mortgage insurance every month.
• Homeowners insurance: If you have a mortgage, your lender will likely require you to carry insurance. And even if you don’t, you’ll likely want a policy to protect your possessions and assets.
• Taxes: Property taxes are due every year, though often on a monthly basis, rolled in with your mortgage payment. They cover things like local schools, road maintenance, and other essential services in your area.
• HOA fees: Not every house has a home ownership association (HOA), but they’re gaining popularity and their fees can pay for anything from maintaining a communal swimming pool, amenities and common areas or services like lawn maintenance or utilities. A typical HOA fee comes in at around $200 to $300 per month – but they can also be much higher for luxury properties or golf course communities.
• Title Company Service fee- Title companies have different charges for making all the paperwork, notarizing the documents and making sure the documents get proper filing and delivery.

Are closing costs negotiable?

Some of the costs are negotiable. Buyers can typically expect to pay between 2% to 5% of the purchase price. However, closing costs may be paid by buyer or by the seller. If you’re in a buyers market, sellers might be anxious to sell their home and might be able to pick some of the closing costs.

How is the Real Estate Market in Florida now?

The answer is it’s most definitely a seller’s market right now in Florida. Despite a pandemic and other economic factors, Florida is still a very attractive place to buy property and inventory is tight in desirable places like Southwest Florida. Here are some tips on buying in a seller’s market:

• Make strong offers that won’t be rejected
• Be prepared for a bidding war and multiple offers during a time of high demand
• Know your final price you are willing to spend
• Realize before you begin that the negotiation power belongs in the hands of the seller
• Pounce on properties where a deal has just fallen through to try and find an opportunity for some negotiation from a frustrated seller

Is Buying a Home in Florida a Good Investment?

Buying a home in Florida is always a good investment and here at Smart Realty of Florida, we can help you with investing in a rental property. Whether you are buying a beach house as an investment or looking for your forever home in sunny SW Florida, the pros always outweigh the cons when buying real estate in Florida. We can help you manage the property through Airbnb, Seasonal, Annual or Vacation Home. We Service all Lee County, Collier and Charlotte County everywhere from Sanibel Island beach houses to Captiva Island, Naples beach, Fort Myers Beach, Cape Coral, Punta Gorda etc. Homes for sale are within your reach when you utilize Smart Realty of Florida to find your perfect property.