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Monday, March 27, 2017

Buying a Home in Florida: Cost of Purchase and More

Besides the long term commitment required in being a home owner there are a few other things prospective home buyers should understand.

Two of the most crucial -are time and money.  Isn't that what most things come down to in this world?

How Long Does It Take To Buy a Home in Florida

First, lets talk about the timeline associated with buying a home in Florida.  In the current market the biggest obstacle to predicting the total time required is the actual length of time to find a home to purchase. 

Currently the Brevard County, Florida single family home inventory is about 90 days with median days on the market about 30 days.  Houses, particularly move in ready houses, are snapped up quickly.  Depending on the specific property characteristics (price, location, etc) a local knowledgeable real estate agent can provide a good estimate on how long it will take to locate the property.

Then the normal inspection, appraisal, mortgage approval and closing process will likely add another 45 days unless the purchase is cash.   If I were to venture a guesstimate I would recommend the earnest pursuit will take about 90-120 days.  Still, buyers should begin to line things up and commence research (choose lender and agent) about 180 days (6 months) in advance.

What Costs Associated With Buying a Home in Florida?

Understanding the costs associated with a home purchase is critical. One of the best things an agent can do for prospective buyers is explain early on the potential out of pocket and long term costs associated with a home purchase. 
The long term costs associated with home ownership are more easily explained.  PITI - the principal, interest, taxes and insurance is what most people understand as their mortgage payment.  Another monthly fee could be home owner association fees.  

And then the oft forgotten "maintenance" requirements can add up as well. There will be appliances that need repair or replacement.  The roof will wear out.  AC systems fail.  There will be routine maintenance.  None of this does not take into account any updating that may be necessary later.

It is the costs incurred during the home search, due diligence period and closing process that many buyers are often in the dark about and sometimes surprised.  

Up front monies can include (this is not all):  escrow (down payment/deposit) survey, 12 months pre-paid insurance, survey, property inspection, termite inspection, pool inspection,utility deposits,  and more.  The lender GFE (good faith estimate) is a place to start.

Buying a home is an exciting process that is made much less stressful when a buyer has the right folks on their side.  The right folks?  Local, knowledgeable professional Realtor and lender

Considering buying a home in Melbourne, Florida?  Call or text me at 321-693-3850 for help....its free!


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