Florida Real Estate Market - Things To Consider When Buying A Home In Florida
Florida - "The Sunshine State", what else is there to add? Well, many things. Florida is not attractive to many people only because it has summer weather all year long, while most other U.S. States experience winter colds; but it also has a robust, expanding economy, very good education system, and a diverse culture with many different nationalities living in one beautiful state, called Florida. If you are a fan of warm weather, outdoor activities, the ocean, beautiful nature, and at the same time looking for a new place to settle down and raise a family, then Florida is certainly a state to consider.
Relocating to Florida or even investing in the Sunshine State has many benefits but it also could be very tricky and requires prior research and knowledge to choose the right house that will perfectly fit your needs. Before you start looking for the house of your dreams, you need to make a list of things that you are looking for in the house and then do the research of the current Florida real estate market yourself. Or you can hire a professional real estate agent that can help you with this. In this article, we will go through some important things one should consider when buying a property in Florida whether for living or just for a profitable investment.
Current Florida Real Estate Market Conditions
Nowadays, the Florida real estate market is a clear buyers' market and if you are planning to buy a new house in Florida within the next year or so, we believe it is a great time. House prices throughout Florida are decreasing, in some areas more than in others, but signs of a real estate market bubble burst are seen everywhere. Presently, real estate prices are driven down by many foreclosures, short sales, and Real Estate Owned (REO) properties on the market, which is a very good sign for buyers who can now go bargain hunting. Couple that with very low interest rates and you get a perfect combination of price and mortgage affordability. Now that the real estate bubble, which was created by investors who constituted 70% of real estate buyers in Florida during past decade, is bursting, the "real" buyers, those who buy homes to settle down in Florida, have a good chance to make their dream come true. Nevertheless, when buying a home in Florida, there are many specifics that you need to consider.
Reasons To Buy a Home In Florida
Well, for most people it is either the weather or relocation due to accepting a new job offer. The weather in Florida is perfect for those who are tired of long winters, rainy falls and everything that comes with it. You will enjoy sun and temperatures of about +60 F all year long most of the time. Nevertheless, you have to keep in mind that Florida gets occasional hurricanes and often a lot of rain. Plus, if you are not tolerant to very high temperatures, combined with high humidity, and have some health problems that could worsen due to those conditions, you should think twice before moving to Florida.
Let's suppose that the weather is perfect for you but that alone is not enough to live a comfortable life, especially if you have a family with kids. Well, Florida's education system is one of the best in the country. It is well-known for its grading program of secondary schools. Each school receives a grade and according to that grade gets either additional financing to recognize its achievement or special programs that target problematic areas in that particular school. This also allows parents to make an educated choice of which school to send their kids to. If a school your kid is currently going to receives a low grade, you can always change the school and this will, in turn, make that school take certain actions to improve the situation.
Overall, Florida's economy is in good shape, although it is starting to feel the credit crunch but not as much as other U.S. states do. You can still find a job in Florida and unemployment rates are 1.5% below the national rate. Many big companies continue their business in Florida and many new companies establish their head offices in Florida, which shows that it is still considered a good state to do business in.
One of the main problems that homebuyers face in Florida is high property taxes but they are now in the process of undergoing some major reforms. The state government acknowledges the problem and is doing everything possible to improve the taxation system and make it more fair for homeowners. Meanwhile, there are several tax cut programs that are already available. For example, the property tax homestead exemption. Under this exemption, all residents of Florida are eligible to deduct $25,000 from their assessed property value. There is also a "Save Our Homes" amendment. This amendment does not allow yearly property assessments to increase more than 3%. There are other tax exemption and reduction programs. We encourage you to seek the help of professional tax consultant before making your decision. Although, currently the real estate market in Florida is experiencing some declines, we believe that investing in Florida property has a very good potential of future profitable returns in the long run. So even if you are considering buying a home to live in, you are most likely making a good investment at the same time.
Things To Consider When Buying A House In Florida
There are many reasons why buying a home in Florida could be a great investment or just a good decision to start a family or raise your kids. However, there are certain things that are specific to Florida's real estate market and that you should consider when estimating the cost of the house and your future expenses. We are listing just some of them here but there are many more and you do need to consult with your local Realtor before making that final decision.
As we already mentioned above, Florida's weather could be pretty disastrous with hurricanes of different magnitude hitting Florida each year. So you must consider the cost of hurricane shutters, which could be very pricey depending on how big your house is going to be but the extra cost of good hurricane shutters can save you a lot of money in the long run. Small homes would need about $3,500 in investment to equip them with hurricane shutters. Larger homes will have even higher costs. So if the house you are going to purchase does not have hurricane shutters, consider it as an additional future cost if your final price negotiation with the seller does not take it into account.
Another problem involving Florida's weather is sprinkler systems. Florida's weather is pretty hot most of the year and to keep that beautiful green look around your house, you would need to have a good, working, reliable, sprinkler system installed. Unfortunately, many Florida houses do not have built in sprinkler systems and you would need to take care of that yourself. This could be quite expensive and you must consider this cost before buying the property.
In Florida, considering where your future home is located, maintenance fees could be substantial on top of high property taxes that you would have to pay. This might become a burden for your budget, so we suggest you examine the situation with maintenance fees in advance.
There are other things that you should consider before buying a house, such as the negatives of owning a swimming pool, homeowners' insurance deductions, purchasing a property in family neighborhoods, and living on barrier islands rather than on mainland. All of the things listed above should be examined closely and all pros and cons should be considered before buying the house of your dreams.
If you need help evaluating your house, neighborhood, finding out all the pros and cons of buying a home in Florida, you should consider contacting one of our experienced and professional realtors® in Florida. We also, have a substantial database of MLS listings in Florida that you can use to start searching the home of your dreams. |