Buying a House in Florida

[RICHNTRISH]

Hi

Please can someone tell us about the total cost of buying a house in Florida and also the time it takes for the sale to go through.

In particular the estimated extra costs involved on top of the purchase price? Could someone please give us a rough figure and break it down to show us exactly what the extra costs cover. ie. in the UK stamp duty, solicitors costs, land registry fees etc.

Any information would be really helpful

Richard & Trish

[Fatbrit]

Originally Posted by RICHNTRISH

Hi

Please can someone tell us about the total cost of buying a house in Florida and also the time it takes for the sale to go through.

In particular the estimated extra costs involved on top of the purchase price? Could someone please give us a rough figure and break it down to show us exactly what the extra costs cover. ie. in the UK stamp duty, solicitors costs, land registry fees etc.

Any information would be really helpful

Richard & Trish

Stamp duty -- doesn't exist!

Solicitor's fees -- using a lawyer is unusual in many (but not all) states. In FL, it is common that two realtors do the deal: one for the buyer and one for the seller. The seller's realtor pays the buyer's realtor (~3%), so as a first time buyer you're free of this. Of course, when you come to sell, you pay for it twice. Avoid deals where the seller and buyer's realtor are the same person -- it's asking for trouble.

Land registry fees -- this is the County Recorder. Fees are in the order of a 20 or 30 bucks. However, the title searches, insuring the title, running the escrow account, etc (sort of "man in the middle") are the Title Company. Fees here are in the high hundreds plus the cost of any title insurance. Who pays this is divided up in the contract -- it's negotiable.

There are many fees (some hidden, some not!) in any loan you might take.

In today's buyer's market, you could conceivably pay no fees at all.

Note that you have a greater penalty on selling your property than that of a US citizen, and you will also pay more in property taxes in Florida.

[tampa_man_33]

Typically closing costs will run about 4% of the sale price which will include prepaids for taxes and insurances , govt fees, title fees, and lender fees.

It it common here to ask the seller to pay these fees since it is a buyers market.
You should contact a Realtor in the area you are looking for. If you have any other questions please feel free to contact me.

[RICHNTRISH]

Cheers Tampa man , so basically as first time buyers in the States we could hopefully just pay the ticket price of the house minus any discount we could negotiate ?
What sort of percentage could i hope to get the price reduced by ? here in the UK i would probably start with an offer about 10% lower then come up a bit .
Richard.

[twostep]

Stamp duty -- doesn't exist!
@@@Not in the UK sense but you have county/city tax stamps

Solicitor's fees -- using a lawyer is unusual in many (but not all) states.
@@@When did you buy your last house? Closing on a house involves buyer, seller, real estate agents, closing agent or attorney.[/b]


In FL, it is common that two realtors do the deal: one for the buyer and one for the seller. The seller's realtor pays the buyer's realtor (~3%), so as a first time buyer you're free of this. Of course, when you come to sell, you pay for it twice. Avoid deals where the seller and buyer's realtor are the same person -- it's asking for trouble.
@@@Should your agent be buyers' and sellers' agent he will go over a number of disclosures with you and a binding contract of all three parties will be signed.

Land registry fees -- this is the County Recorder. Fees are in the order of a 20 or 30 bucks.
@@@Registration fees vary from county to county.

However, the title searches, insuring the title, running the escrow account, etc (sort of "man in the middle") are the Title Company. Fees here are in the high hundreds plus the cost of any title insurance. Who pays this is divided up in the contract -- it's negotiable.
@@@You do not have to have title search/insurance. Personally - I would highly recommend it as it traces ownership and liens on the property.

There are many fees (some hidden, some not!) in any loan you might take.
@@@Federal law requires your lender to present you with a Good Faith Estimate (1974 RESPA). In your case closing agent/attorney. You will need a survey, appraisal, termite check or bond, inspection, prorated taxes, insurance ...

In today's buyer's market, you could conceivably pay no fees at all.

Note that you have a greater penalty on selling your property than that of a US citizen, and you will also pay more in property taxes in Florida.
@@@What do you mean by penalty for selling? Yes, homestead excemption does not apply for tax purposes.

A bit boring but it will give you an idea on how things work.
HUD / FHA - Office of Housing - Federal Housing Administration

This is a commercial site but explains things fairly well.
Real Estate in Florida Â*Your Closing Checklist

[Fatbrit]

@@@Not in the UK sense but you have county/city tax stamps.
Please link to one in Florida (OP's destination).

@@@Closing on a house involves buyer, seller, real estate agents, closing agent or attorney.
An attorney is unusual in Florida, especially for private real estate. The contract is usually done by the real estate agents (and included in their fee), and the closing is done by the escrow/title company. This is different from the UK where an attorney is almost always in the process.

@@@Should your agent be buyers' and sellers' agent he will go over a number of disclosures with you and a binding contract of all three parties will be signed.
It's called double dipping, and makes the slender fiduciary duty the agent owes you under law even more tenuous. How can the agent work on your behalf if s/he is also working for the other party? Enter at your peril!

@@@Registration fees vary from county to county.
Yep -- in the order of 10s of bucks!

@@@You do not have to have title search/insurance. Personally - I would highly recommend it as it traces ownership and liens on the property.
You'd be crazy not to have a title search!!

@@@What do you mean by penalty for selling? Yes, homestead excemption does not apply for tax purposes.
The seller does not benefit from many of the tax write offs citizens and/or permanent residents have when the property is disposed of. For this purpose, 10% of the sales price is withheld when s/he sells, reclaimable only after selling up with Uncle Sam.

[RICHNTRISH]

Cheers guys , very helpfull .

[ajus]

Look into new built properties especially inventory ones. Inventory homes are tagged with a price but there are extremely negotiable. On top of that, as incentives the seller will provide with up to 3-6% of closing costs if you go with their lenders. There are many options open to you. Property tax may be a bit high but it varies from county to county. Comparing Florida with other states, residents in florida only pay property tax and Federal tax. Other states include property, federal, state, city and local tax. So you are still getting a good deal