More Things To Know

Making an Offer

Once you’ve found a home you love, the next step is for you to make an offer. If you follow these steps before submitting your offer, you increase its chances of being accepted.

• Ask your agent for a Comparative Market Analysis (CMA) that will tell you what other similar homes in the same neighborhood have sold for recently.
• Your agent may be able to find out if there are any extenuating circumstances associated with the property such as the seller needing to move quickly, imminent foreclosure or a short sale.
• Learn what mortgage rates you qualify for so that you can calculate an affordable monthly payment.

You will usually write a check for a certain amount, called “earnest money”, to submit with the offer. After you submit the offer, one of three things may happen:

• Your offer is accepted
• Your offer is rejected, or
• Your offer is rejected and the seller submits a counter-offer.

Then, you once again have three choices:

• Accept the counter-offer
• Reject the counter-offer and submit your own counter offer, or
• Reject the counter-offer and walk away from the sale.

When you and the seller agree on a price and sign the agreement, that signed document becomes a sales contract.

Buying a Home “As Is”

If you are considering a home that is listed for sale “as is,” be prepared for possible surprises. There is generally no room for negotiating repairs or price reductions on this type of property. When you sign the sales contract, you are agreeing to purchase the house in its current condition, whether or not you are fully aware of any problems surrounding it which may include structural defects, liens and current tenants, among others You can sometimes find very good deals on “as is” properties; however, you should be extra cautious when looking at these homes.

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(consumer guide)

Click here for my complimentary Consumer Guide to Homebuying in Florida

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Title Insurance: Why You Must Have It

Title insurance is your protection in the event that the seller of your home does not have the legal right to transfer title to you. Although not a common occurrence, this can happen due to unpaid taxes and liens, legal judgments, fraud, forgery, divorced owners and/or missing heirs.  The title insurance protects your investment if any claims, valid or not, are made against your property, even after you’ve taken possession.

In Miami/Dade it is customary for the buyer to pay for title insurance. The cost varies, as it is based on the purchase price of the home and is regulated by the state. There are two types of title insurance policies. The first is an owner’s policy which protects your equity up to the purchase price. If you are taking out a new loan, a lender’s safeguards the lender’s interest in the property.

Cash Purchases vs. Mortgage

Whether you opt to pay cash for your Miami Luxury Home or finance it through a mortgage depends on your financial circumstances. By paying cash you forego the necessity of monthly loan payments; with a mortgage you may take advantage of certain tax benefits. You should discuss the benefits and disadvantages of each alternative with a financial advisor or attorney.

Inspections: A Critical Step

The inspector’s job is to look for major structural and/or material defects and uncover any safety issues in the property. He should check the foundation, plumbing, septic systems, electrical systems, heating/air conditioning, garage, roof and appliances. No home is ever going to be perfect; you just want to be sure that there are no potentially critical (and expensive) issues down the road.

You may also want to have separate inspections for radon, pest infestation or lead-based paint, depending on the property. If the inspection reports reveal any problem areas you may

1. Ask the seller to fix or repair them
2. Renegotiate the price
3. Decide to walk away from the transaction.

Another informative source is the seller’s disclosure. It should indicate the age of the home, if there are any warranties and/or open permits, items that are not included in the sale and the condition, if known, of appliances and systems.

For a comprehensive list of questions to ask your inspector, click here.

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Property Taxes

Florida’s property taxes may be a bit higher than those you’ve paid in other parts of the country. The good news—Florida has no city or state income tax. Two components are used when calculating property taxes in Miami/Dade County.

Ad Valorem Taxes are taxes based on the property’s value. They are calculated by multiplying the property’s assessed value times the tax rate per thousand dollars of assessed value (known as the millage or mill rate).

Non-Ad Valorem Assessments comprise service charges for solid waste, lighting, landscape and community development districts. They are not based on a property’s value.

Certain exemptions may also be available for veterans, people with disabilities, seniors and other circumstances relating to intrastate moves.

To calculate approximate property taxes for a home you are considering purchasing, visit http://www.miamidade.gov/pa/tax_estimator/TaxEstWorksheet.asp?Fol=

Non-U.S. Citizens: What You Need to Know

Buying

As an international city, Miami attracts homebuyers from all around the world. The process for foreign citizens is relatively easy. I can help you every step of the way from working with you online to view properties to providing translated information in Spanish, French, Turkish, Chinese and Hebrew.

Real estate transactions in the U.S. function a little differently than they do abroad. You’ll find that many people are involved in the process, especially if you are applying for a mortgage. They may include a lender, title insurance company, inspector, underwriter, escrow officer, buyer’s and seller’s agents, homeowner’s associations and the closing company. This is one of the reasons that buying a home in Miami may take a little longer than you are used to but, rest assured, every step is taken to protect your legal rights and interests as a homeowner. Click here for an overview of the homebuying process. (refer back to flow chart)

It is a good idea for you to contact with a real estate attorney about the most beneficial way for you to hold title to the property (in your name, a company’s name, as a couple, etc.) and structure your tax status. I can recommend experienced, trustworthy attorneys who specialize in working with foreign buyers. Click here for real estate attorney referrals.

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Selling

As a non-U.S. citizen, when you sell your Miami property, 10% of the proceeds will be withheld by the title company to ensure that the government receives its share of your capital gains tax. This is known as the FIRPTA law: the Foreign Investment in Real Property Tax Act of 1980. After the tax has been assessed and collected, you will receive either a refund or notice of additional payment due. If you are interested in learning more about FIRPTA, visit http://www.irs.gov/businesses/small/international/article/0,,id=105000,00.html

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