Florida home prices – extra costs associated with Florida properties
When you buy property anywhere in the world there are unavoidable costs that you will incur and your Florida home is no exception. There are legal expenses, registration charges, taxes and other fees relating to the purchase of Florida properties. When working out how much you can afford to spend on your dream Florida villa you must factor these costs into your budget.
Initial costs of buying Florida properties
In most cases, a goodwill gesture deposit of a few thousand dollars will be sufficient to reserve a Florida villa or other property and fix the price. Thereafter you would enter into a full purchase contract to buy Florida properties and lodge a 10% deposit with an escrow agent. You will also need to pay for any costs incurred when searching for a Florida home, such as a buyers brokers service.
Legal fees associated with your Florida home
It is not a prerequisite to employ a lawyer when buying a Florida home. However, with property being such an important investment it is vital to seek the services of lawyers fully-versed in the intricacies of the law regarding Florida properties.
When not using a lawyer a title insurance company must be used. These firms check the seller is the legal owner of Florida villas or other properties and insures it against anyone making a third party claim.
Surveyors, known as home inspectors, will be paid for by the buyer. Estate agents commission of 6% will be paid by the seller.
In total 2% of the purchase price of a Florida home should be added in legal/title insurance fees. If you are buying using a mortgage add 3% to the cost of Florida properties in administration fees.
Taxes incurred when buying Florida villas
Sales tax is levied at 6% in Florida but some counties may impose a surtax of 1.5% in addition when Florida properties are being sold. Owners of Florida villas must pay ongoing property tax, which is paid a year in arrears. Property tax will equate to around 1 to 3% of the value of your Florida home each year.
Closing costs related to buying Florida properties
There are other services you will need to contract when buying Florida properties such as termite inspection, documentary stamps and the transfer of property and deed. These closing costs will add around another 2% to the cost of your Florida home. Remember to take these costs into account when setting a budget for buying Florida villas.
