Miami Home Buyers FAQ's
Answering Your Miami Home Buying Questions
Buying a Miami home is both thrilling and a bit unnerving, especially if you're a first-time home buyer. Both experienced home buyers and first-time buyers alike will benefit from the frequently asked questions below. Before you begin your search, it is recommended that you prepare yourself for the journey by educating yourself. This will ensure you are a knowledgeable home buyer prepared to make a confident home buying decision.
There are over 180 steps in a real estate transaction, and some of these steps missed can cause you to buy a lousy property or worse, lose money.
Q - I've never purchased a home before. Where should I begin?
A - Actually, you've already started the process. Fact-finding and reading articles is a great way to become a smart consumer. The highest priorities to focus on before you begin searching for specific areas, neighborhoods or homes would be to:
- Familiarize yourself with your personal finances.
- Carefully review your budget and begin to eliminate as much debt as possible.
- Have a down payment and earnest money ready when the time comes to act and make your offer.
- Meet with a local Realtor, go through the process and come up with a gameplan.
- Talk to an experienced local lender and make a gameplan with her.
Your next step is to contact us. As your home buying specialists, we'll protect your interest and manage the details of the real estate transaction on your behalf to your complete satisfaction. For more experienced buyers, a little brush up on the real estate process wouldn't be a bad idea. Of course, you'll need a really sharp real estate team to protect your interests too!
Q - I keep hearing that Miami is mostly a cash market what does that mean and can I get financing?
A - That means that many people who purchase property in our area pay ALL CASH for the property.
With that said, YES you can get financing depending on what you are purchasing.
Single-family home purchases, no problem. Financing is pretty straightforward.
Condominium home purchases, an entirely different scenario. Condominium financing in our area is very tedious, and it's essential to work with a lending professional who is VERY EXPERIENCED in our area. This is a very long and detailed explanation and we go over this during the buyer consultation.
According to our local real estate association:
Condominiums comprise a significant portion of Miami’s cash purchases as 54.3 percent of condo closings were made in cash in March 2018 compared to 22.5 percent of single-family home sales.
Q - How long does the process take?
A - If you are paying cash, typically you can close within 15 days. If you need financing it usually takes around 45 days to close.
Q - What are my upfront costs?
A - There are several expenses that you can expect to pay in advance:
- Deposits: With the offer, it is customary to place a deposit to show good faith as the buyer. You can talk to your real estate professional in regards to how much. In our area, we see deposits around 5 to 10% of the purchase price. Sometimes more, sometimes less.
- Home Inspection: It is highly recommended that you obtain a professional home inspection. A licensed Florida Inspector should conduct inspections in Florida. The cost of inspections depends on the size of the home and the types of inspections you are ordering. Most inspections start around $300 plus. You will also need insurance inspections. Additionally, some properties will need the mold, termite, pool, seawall and other types of inspections. These are considered to be extra inspections and will incur additional fees.
- Title work/Attorney/Closing Agent: Once your contract is executed we send it off to a title company so they can start their processes. They have specific processes that they manage during the sales transaction and they will actually close the transaction on the closing day.
- Mortage Costs: please consult with your lender for their specific fees. One item included in the mortgage costs will be the appraisal.
- Homeowner’s Insurance: Insurance varies based on how you are paying for the property, the condition of the home and insurance policies.
- House: If you are purchasing a house and obtaining financing, then your lender will require you to have specific insurance. You are responsible for obtaining this insurance prior to closing.
- Condominiums: The condo association will carry a certain insurance policy, and you will need to have a separate policy for the unit.
- If buying a condo, there will be condo association application fees, moving fees, elevator deposits, etc. Each building has its own rules and regulations.
- and more... every transaction is different so there may be different fees required.
Q - How much are property taxes?
A - Never use the current owner’s property taxes fees as a reference for how much you will pay for taxes. Taxes reset with each new owner. Click here to find out more about Property Taxes: http://www.miamidade.gov/pa/tax_estimator/TaxEstimator.asp
Q - Procedures to buy a condo.
A- Once your sale contract is executed, we will contact the condo association and send you a full set of condominium documents. These documents are the rules, regulations, bylaws, financial information and other details.
A - Associations require an application process and the approval of this application has to be given to all parties and the title company to close. You may be required to submit proof of income from your country, full residence, employment, and banking information. Sometimes an in-person interview is required.
& there are about 175 more things to know about buying real estate in Miami!
Next step, let's chat and make a game plan.
Are you ready to schedule your home buying consultation? If so, contact us today and together we will review your needs and your budget to help you find the right property for you!