Questions and Answers Q. Are these prices real? Why are they so Cheap? A. Yes the prices are real. In 2005 there was a mass increase in sub prime
mortgages that lead to a drastic over night change in monthly mortgage
payments when the short period of a very low interest rate re calculated
and many home and property owners were not able to pay the inflated mortgage payments as they went up to as much if not more than double what they were paying before. We also had a huge buying frenzy that produced a bubble effect. You can research more about this on the internet. From 2005 and 2008 many people bought homes for 3 and 4 times what they are priced at now. The bank owns thousands of these homes now and at this time they desire to unload them. Thus the very low prices in houses. Many people view this as a once in their lifetime opportunity to buy a property and the lowest prices we have seen in many many years in Florida. Having said that, please always be sure to varify a
an estate agents license and check if they are a member of Orlando
Regional Realtors Association. If they are not a member of a board then
are NOT a Realtor they are an sales associate and you may not be covered
by the boards recovery fund in case of any issues. Always ask your agent
if they are a Realtor or an sales associate and what board they belong to
Always varify the agents license by going to www.myfloridalicense.com
and clicking on "varify a license". This can save you from fraud. Q. Are there hidden costs involved. What are the costs involved in purchasing
a property in Florida? A. No, there are no hidden costs. You have, the purchase price of the
property, the cost of the inspection (approximately $250), the cost of the
appraisal (approximately $350), and approximately 3.5% of the purchase
price in closing costs. Also each buyer and seller will pay a transaction fee of $295 that the brokerage charges to store the buyer and sellers' paper work for five years. Ex. Price $100,000, fees equal approximately $4,100 so total amount at closing will be $104,100 less your escrow deposit. Plus $295 Q. What are the maintenance fees or upkeep fees for owning a property in Florida.. If you are a cash buyer? A. You will have your annual taxes, monthly or annual HOA fees, utility ie. water or electric and in some cases gas fees, and if you let/rent out your property you may have management fees. Q. How much are management fees if I decided to hire a management company to deal with all of my tenants and property rentals from abroad? A. Companies may vary, but generally they charge the first months rent as a fee for procurring an tenant in the unit and 10% of the monthly rent each month. Again this may vary. Q. What are annual taxes? A. An annual tax based on the appraised value of the property, implemented by the government. Q. What is an HOA fee? A. A monthly or annual fee implemented by the Home Owners Association. Q. What is a Home Owners Association? A. The Home Owners Association is comprised of every single owner of the properties either in a condominium building or a subdivision or community. The owners vote in a President, treasure, secretary and various positions. Q. Why are the condo HOA fees per month and the residential homes/houses/villas HOA are annual/per year? And what does this cover? A. A condo HOA fee, generally covers cost related to: the insurance for the outside of the property, the grounds up keep, the pool, the security coded gates, the gym, the playground, the clubhouse, The painting or repairs to the outside of the building, the tennis courts, BBQ area, Volley Ball Area. Or other inside or outside recreational areas. A. A house/villa HOA fee, generally covers costs relating to: the privacy wall to the community, the entrance to the community a reserve of funds for any possible litigation involving the community and the community pools and/or park areas. And the electronicly coded gate if in a gated community. Q. What are the benefits of an HOA fee? A. Owning a property in an HOA required community ensures that each owner maintains certain standards regarding their properties. Such as, keeping the lawns nice, not having broken down vehicles or trash in the yards, not having your neighbor paint his house pink. The purpose of an HOA is to keep the value of the properties in the neighborhood from declining. Q. Will I need Home Owners Insurance? A. If you are a cash buyer you will not be required to own insurance. If you take a mortgage/loan out to purchase the property you will be required to purchase and prove that you have insurance before the closing of the property. Q. When I purchase a condo is it a lease hold or a free hold and what do I actually own? A. When you purchase a condo you will have a free hold ownership of the property you will own the unit itself and all the inside walls etc. The common areas/the outside is owned by the HOA which is comprised of each and every owner. Q. When I purchase a residential house/villa is it a lease hold or a free hold and what do I actually own? A. When you purchase a residential house/villa it is a free hold and you own the property itself and the land it sits on as well as the air above. Q. Who pays the realtor® commissions? A. The Seller or the Buyer may pay the realtor fees. It is
customary for the seller to pay the realtor® fees. However the buyer
may be asked for a small contribution of 1% in some cases. The buyer
is always notified of this in advance. For purposes of
purchases it is customarily paid by the seller/bank pays the realtor fees
unless otherwise negotiated in the contract. Q. When purchacing a foreclosure do you take on any existing debt or is
the property then yours?? A. No you do not take on any existing debt. the price is the sellers/banks
price and the title must be cleared before it is sold. Unless otherwise negotiated. |