“Are there any communities around here without CDD fees?”

The short answer is yes , but they’re becoming harder to find.

Many newer  master-planned communities across Southwest Florida include CDD fees, especially in large developments like Wellen Park or Lakewood Ranch. While these communities offer incredible amenities, those added CDD fees in Florida can increase your annual costs by thousands.

The good news? There are still some fantastic communities in the Venice area where you can avoid a CDD fee altogether.

In this guide, we’ll break down how a CDD in Florida works, how it compares to HOA fees, and highlight some great neighborhoods where you can skip those extra costs.

What are Community Development District fees in Florida?

First things first. Before we jump into our list of communities around Venice & near Wellen Park that do not have CDD fees, what exactly are CDD fees in Florida real estate? 

A CDD (Community Development District) is a special government entity created by a developer to fund and manage infrastructure within a community. Essentially, it’s a type of loan or “bond” from the local government to help cover the costs of the developers to put in new infrastructure. In simple terms, a CDD fee helps pay for things like roads and sidewalks, utilities and drainage systems, community amenities (like clubhouses, pools, fitness centers), and even landscaping and common areas. 

Instead of the developer including these costs in the home price, the bond is paid back over time by homeowners as a separate line item on their annual property taxes. These fees are typically paid over 20–30 years, depending on the age of the community. So if you buy into a newer neighborhood, you could be paying that CDD in Florida for quite a while.

HOA vs. CDD Fees — What’s the Difference?

This is where a lot of buyers get tripped up.

While both are common in Florida real estate, HOA fees and CDD fees serve very different purposes.

• HOA fees are paid directly to the association, while CDD fees are paid through your annual property tax bill (you’ll see them as a separate line item).
• HOA fees cover day-to-day maintenance, while a CDD fee is used to repay the cost of building the community’s infrastructure.
• HOA fees are ongoing for as long as you live in the property, while CDD fees in Florida are usually temporary and tied to a bond (often around 30 years).

It’s important to understand how CDD fees work when comparing communities because they’re not always obvious when you first start looking and may end up being the deciding factor when purchasing a property. It’s also very important to calculate both your CDD and HOA fees in total so you can understand the full cost of ownership and whether or not it fits into your budget. 

Everything You Need To Know About CDD Fees in Florida

We get it…  CDD fees in Florida real estate can feel confusing at first.

So here are some of the most common questions we get (and the answers you’ll actually want to know before buying).

What are typical CDD fees for Florida real estate properties?

Most CDD fees Florida real estate buyers see fall somewhere between $1,000 and $5,000 per year, depending on the home, the community and amenities. For example, all communities in Wellen Park have CDD fees; however, they each have different amounts. 

Newer master-planned communities tend to be on the higher end, since the CDD in Florida is funding larger infrastructure and resort-style amenities.

When comparing homes, it’s always a good idea to look at the specific CDD amount for that property, since the cost can vary quite a bit even between nearby communities.

How are CDD fees paid?

CDD fees in Florida are paid annually through your property taxes and appear as a separate line item.

How can I estimate CDD fees when buying a home in Florida?

The easiest way is to check the property tax bill as the CDD fee will usually show up as a separate line.

For new construction, your agent or builder can give you the amount. Either way, always confirm the exact CDD fees for the specific property before making a decision.

Why do so many new communities have CDD fees?

CDD financing allows local municipalities to work with developers to build large master-planned communities without raising the purchase price of homes or levying taxes on residents who live outside these communities.

Instead of paying for infrastructure upfront, the cost is spread across homeowners over time through the CDD assessment.

How can I avoid paying CDD fees when buying a home in Florida?

The only way to completely avoid CDD fees is to buy property in a community that doesn’t have them. These are typically older neighborhoods or smaller developments that didn’t use CDD financing to build their infrastructure.

In some cases, you may also find homes where the CDD bond has already been paid off, which can reduce or eliminate a portion of the fee but this depends on the community.

Are there communities in Wellen Park with no CDD fees?

Short answer: No.

All communities in Wellen Park include a CDD fee. That said, the amount varies and older sections may have lower CDD fees in Florida because the bonds have already been paid down over time.

What impact do CDD fees have on Florida property resale value?

A CDD fee doesn’t automatically hurt resale value but buyers do factor it in.

In many cases, homes in Florida with CDD fees buyers pay still perform well because of the amenities. But homes in Florida without a CDD often stand out for buyers focused on keeping long-term costs lower.

Are CDD fees permanent?

No (thankfully!), most CDD fees in Florida communities last around 20–30 years, depending on the bond. However, it is possible that a CDD can be extended if more funds are needed for major infrastructure improvements. 

Can I pay off my CDD fees in Florida early?

Some communities allow you to pay off the bond portion of your CDD fee, but not all do. And even if you do, there may still be a small maintenance portion remaining.

If this is something you’re curious about when buying a home, it’s always a good idea to ask about the CDD details for that specific property, since every community handles it a little differently.

Are CDD fees tax deductible?

In many cases, a portion of CDD fees may be tax deductible, similar to property taxes. However, this depends on the specific structure of the assessment and individual tax situations, so it’s always best to confirm with a tax professional.

Popular Venice Area Communities With No CDD Fees

Now that we’ve covered the ins and outs of CDD fees in Florida, let’s take a look at some great communities in the Venice area & nearby Wellen Park where you can skip them altogether, because let’s be honest, we all like saving a little extra on our biggest expenses.

While many newer neighborhoods include a CDD in Florida, there are still several great options in Venice, Nokomis, and Englewood where you can enjoy beautiful neighborhoods and amenities without that additional cost.

Beachwalk by Manasota Key

Beachwalk by Manasota Key is one of the newest resort-style communities near Venice, located just a few miles from the Gulf beaches and the famous Manasota Key area. Developed by DiVosta, this gated community offers a true vacation-style atmosphere with extensive amenities and a relaxed coastal feel.

Homes range from the mid $300s to $900k+, with both villas and single-family options available. 

Residents enjoy a large clubhouse, resort pool, fitness center, pickleball courts, and even an on-site restaurant and bar. One of the biggest advantages is that Beachwalk has no CDD fees, which helps keep long-term ownership costs lower than many comparable communities.

View all properties for sale in Beachwalk

Talon Preserve (Nokomis)

Talon Preserve is one of the most popular new construction communities near Venice and Sarasota. It’s located just off I-75 near Palmer Ranch, with direct access to the Legacy Trail, a popular biking and walking trail connecting Sarasota and Venice.

Talon Preserve is another DiVosta community. Homes in this gated community range from the high $400s to $1M+, and amenities include a resort pool, fitness center and spa, restaurant and bar, pickleball and tennis courts, and scenic walking trails throughout the community’s nature preserves. 

Even better – no CDD fee, which is rare for a newer community with this level of amenities.

View all homes for sale in Talon Preserve

Palmero 

Palmero is a boutique community in Venice developed by Taylor Morrison, offering a smaller and more intimate feel compared to some of the larger master-planned developments nearby.

This is a recently completed community and homes here are only a couple years old and range from the mid $400s to $700k+, with modern layouts and flexible living spaces. Amenities include a pool, clubhouse, dog park, and playground, making it appealing to both families and retirees looking for a quiet neighborhood close to Venice’s beaches and downtown. 

And of course, no CDD fees, which helps keep things more predictable long-term.

 View Homes for sale in Palmero

Shores At Stillwater

Shores at Stillwater is a new gated community located in Englewood (just south of Venice) and is a Pulte Homes community area. It offers modern homes in a peaceful setting, but is still close to shopping, dining, and the Gulf beaches. 

The neighborhood features contemporary open layout single-family homes with energy-efficient designs that can help keep utility costs a bit lower over time. Homes range from the mid $400s to $700k+, and residents enjoy a clubhouse, pool, and outdoor gathering spaces designed for both recreation and socializing.

Another great option without a CDD fee.

 View Homes for sale in Shores at Stillwater

Legacy Groves

Legacy Groves is a newer boutique Nokomis community with easy access to Venice, Sarasota, and the Gulf beaches. Another Pulte Home community, it features thoughtfully designed single-family homes and villas with modern layouts, open living spaces, and flexible floor plans that work well for both families and retirees.

Home prices typically range from the mid $500s to around $700k+and amenities include a pool, cabana, playground, and walking areas. 

No CDD fees here which makes it a solid option for buyers watching long-term costs.

Search Legacy Groves Homes for sale

Boca Royale Golf & Country Club*

The original Boca Royale Golf & Country Club is a mature gated community located in Englewood, just south of Venice, known for its relaxed country club lifestyle. The neighborhood includes a mix of single-family homes and maintenance-free villas, many with views of lakes, preserves, or the golf course.

Homes in the original Boca Royale community typically range from the mid $400s to around $900k+, with golf, tennis, pickleball, dining, and social events available, making it a great option for buyers who enjoy an active community atmosphere.

*Important note: the original community has no CDD fee, but there is a newer  section called “Boca Royale at Wellen Park” that is tied to Wellen Park and DOES have a CDD fee as a result. So be sure to double check in this community, because fees will vary dramatically depending on the section where you buy. 

 Search Homes for sale in Boca Royale

Vicenza 

Vicenza is a newer community in North Venice with a distinctive Italian-inspired design built by Neal Communities, a popular builder in this area of Florida. 

Located in North Venice near Nokomis, the neighborhood offers easy access to beaches, shopping, and I-75, making it a convenient location for both commuters and retirees.

Homes range from the mid $400s to upper $600s, including two-bedroom villas and three/four-bedroom single-family homes, with optional pools and great views. 

The community is well-suited for an active lifestyle and amenities include a resort-style pool, clubhouse, pickleball, bocce, dog parks, and scenic ponds throughout the community. There’s even an activities coordinator to organize social events and gatherings — all without the added cost of a CDD fee in Florida, which makes it especially appealing. 

 Search Homes For Sale in Vicenza 

Milano (North Venice / Nokomis)

Milano is a peaceful, established Neal community with Mediterranean-style homes and natural gas (which is a nice bonus). 

Located in Nokomis just north of Venice, you’ll only find resale homes here  which typically range from the mid $400s to around $700k+. 

Milano offers similar floor plans to its sister community of Grand Palm, but with a different architectural feel.

Amenities include a clubhouse, resort-style pool and spa, and a dog park. Milano also has relatively low HOA fees compared to many newer communities in the area. Coupled with no CDD fees, it’s a strong combo for long-term affordability.

 View all homes for sale in Milano

Cielo

Cielo is another smaller, Neal community in North Venice that tends to fly under the radar. The gated community is just minutes from shopping, dining, and the Gulf beaches.

Homes range from the mid $500s to $800k+, and new construction homes have sold out but resale opportunities still pop up occasionally.

It’s close to Myakka River State Park which makes it a great location for anyone who enjoys hiking, wildlife, and spending time outdoors.  The community feels very chilled yet luxurious, has low HOA fees, and  (you guessed it) no CDD fee.

 View Homes for sale in Cielo

Venice Woodlands (Venice)

Venice Woodlands is a quiet community, tucked away just east of I-75 that a lot of buyers overlook, but it’s actually one of the best-value options in the area. In fact, it’s currently the most affordable way to get into a gated, amenitized, new-construction community with a Venice address anywhere along the Gulf Coast.

Built by D.R. Horton, homes here range from villas to larger single-family homes, typically from the mid $200s up into the  high $500s. Many homes back up to preserves or lakes, so you get a bit more privacy and a nicer view than you’ll find in some of the bigger developments.

The amenity list is simple but well-maintained — a resort-style pool, clubhouse, fitness center, pickleball, bocce, and walking trails. It’s not over-the-top, but that’s kind of the point. This is a great, more affordable community for families or anyone looking to keep fees lower while still having the essentials.

And one of the biggest perks? No CDD fees in Florida, which is getting harder to find in newer communities like this.

 View Homes for Sale in Venice Woodlands

Palencia

Palencia is a gated community in Venice by D.R. Horton that offers a quiet, more intimate feel while still being close to the heart of it all. It’s especially appealing for those who enjoy Venice’s downtown scene, with easy access to the Venice Theatre, Venice Art Center, local farmers markets, shops, and restaurants.

Single-family homes and twin villas typically range from the mid $400s to around $700k+, making it a great option for newer construction at a more approachable price point.

Residents enjoy a well-kept setting with amenities like a community pool and cabana, and the added bonus of no CDD fees, which can make a real difference when planning for long-term costs.

 Search Palencia Home for sale

Venetian Falls (55+ Community)

Venetian Falls is a popular 55+ gated community in Venice designed for active adults who want a social lifestyle with low-maintenance living. It’s just a short drive from Venice Beach, historic downtown Venice, waterfront restaurants, boutique shops, and local farmers markets.

Of course, that’s assuming residents ever feel the need to leave. The community offers a large clubhouse with social spaces (including a Grand Ballroom), a resort-style pool and spa, fitness center, bocce courts, putting green, and scenic walking paths throughout the community,along with an Activities Director who helps keep things fun and engaging.

Homes typically range from the high $300s to around $600k+ and include both villas and single-family homes with single-story layouts. With maintenance-free living and no CDD fees, it’s an especially appealing option for retirees looking to keep things simple and predictable long-term.

 View Homes for Sale in Venetian Falls

Caribbean Village

Caribbean Village is a gated community in Venice developed by D.R. Horton, located near the corner of River Road and Venice Avenue. It’s about six miles from the Gulf beaches and close to outdoor destinations like Myakka River State Park and Deer Prairie Creek Preserve, making it a great fit for nature lovers. It’s also just a short drive to Wellen Park.

Homes typically range from the high $400s to around $700k+ and feature Mediterranean-inspired designs with spacious three-bedroom layouts. Some homes also offer peaceful lake views.

Residents enjoy amenities like a resort-style pool and spa, fitness center, and bocce courts, creating a relaxed, social atmosphere where it’s easy to unwind — with the added bonus of no CDD fees.

 View Homes for Sale in Caribbean Village

Finding the Right Venice Community Without CDD Fees

If you’re searching for new homes in Venice without CDD fees, there are some great options available. And even though they are not located directly in the heart of popular master-planned communities like Wellen Park, they are still just a short drive away. And some of them are even closer to the beach!

Communities like Beachwalk, Talon Preserve, Vicenza, Milano, and Palmero show that you can still find great neighborhoods without a CDD in Florida…  you just need to know where to look.

If you’re thinking about making a move, we’re always happy to help you compare communities, break down CDD fees Florida real estate buyers should watch for, and find the right fit for your lifestyle and budget.

Reach out anytime. We’d love to help you find your perfect Florida home.

The post 13 Venice Area Communities With NO CDD Fees (Near Wellen Park) appeared first on That Florida Life.

Unlike most new construction homes in Wellen Park, where you pick a floorplan and select finishes from a limited range of options or design package, ICI Homes gives you the power to completely customize your home from the ground up. Want to expand the footprint? Add a game room or home gym? Maybe even a detached casita guest house for family and friends? Include gorgeous custom lighting? With ICI Homes, the options are endless.

In this post, we’ll walk you through:

• Who ICI Homes is and their role in Wellen Park
• The benefits of building a custom home in the Palmera & Oakbend Communities
• Exactly how the step-by-step process works (yes, we’ll keep it simple!)
• Extra tips on budgeting, timelines, and what to expect
• Why Palmera is such a special place to call home

Oh, and because sometimes it’s just easier to see it all in action—we’ve also made a video walkthrough of the ICI Homes custom home process right here for you:

Who is ICI Homes and Where Are They in Wellen Park?

ICI Homes is an award-winning custom home builder in Florida, with more than 40 years experience in the industry. They’re especially known for two things:

1. Beautiful floorplans with great flow
2. Incredible customization options 

In Wellen Park, you’ll currently find them building in the brand-new Palmera community, with plans to expand into the upcoming Oakbend community as well.

At Palmera Wellen Park, ICI Homes offers large 75-foot homesites—a big deal since many builders in the area use smaller lots. These wider sites mean you’ll have room to spread out, create beautiful outdoor living spaces, and even take advantage of stunning lake or preserve views.

If you’re curious about Palmera, check out our full Palmera Community Guide to find out why this area is so special!

Why Build a Custom Home in Wellen Park with ICI Homes?

Let’s be honest – there are a LOT of fantastic builders in Wellen Park, all offering amazing homes. After all, it’s one of the most sought after developments in the country. You could pick from any builder’s standard floorplans and end up with a lovely house. But if you’re looking for something special—something that’s designed just for you—here’s why you’ll love working with ICI Homes in Palmera:

True Customization

One of the biggest perks of building with ICI Homes is the freedom to truly make your home your own. Instead of being stuck with a handful of pre-set options, you get to take one of their award-winning floorplans and treat it as a starting point. Want to move a wall or shift the layout around? No problem. Need more space overall? You can expand the footprint to give yourself extra room where it matters most.

This is also where you can dream a little bigger. Maybe you’ve always wanted a dedicated game room, a private exercise studio (we even saw one home with a workout studio built into the bathroom – talk about convenient clean-up!), a cozy craft space, or even a temperature-controlled wine room? ICI Homes can make that happen, and more. 

And since Florida living is all about enjoying the outdoors, you can also design your lanai and backyard to fit your lifestyle, whether that’s a resort-style pool, an outdoor kitchen, or a space for cozy sunset dinners by the lake. With ICI Homes, your house doesn’t just look like every other home on the block. It reflects the way you want to live.

It’s all about designing your home to match your life, not the other way around.

A Resort-Style Lifestyle in Palmera

Of course, building your dream home is only half the story. You also want to love the community you’re living in. That’s where Palmera really shines. Life here feels like being on vacation every single day.

From the moment you drive through the gated entrance, you know you’re stepping into something special. At the heart of the neighborhood is a gorgeous clubhouse, the perfect place to gather with neighbors or just relax. Outside, you’ll find a resort-style pool complete with a splash pad, so whether you’re in the mood to lounge with a book or splash around with the kids, Palmera has you covered.

Staying active is easy too, thanks to a fully equipped fitness center, plenty of sports courts, and even a golf simulator. For the dog lovers, there’s even a dedicated dog park where your furry friend can run and play. And when you don’t feel like cooking, you don’t have to because Palmera will have its own onsite restaurant and bar, making it simple to grab dinner or a drink close to home.

To top it all off, a full-time lifestyle director keeps the community calendar packed with fun events and activities year-round. From fitness classes to social gatherings, there’s always something going on, which makes it easy to meet new people and really feel like part of the community.

Space to Breathe

Those 75-foot homesites make a big difference. You’re not squeezed in, and you have the chance to design a home with curb appeal, privacy, and outdoor living that feels like your own little oasis.

Now Selling – ICI Homes in Oakbend at Wellen Park!

If you’ve been dreaming of building a custom ICI Home in Wellen Park but are looking for a slightly lower price point than Palmera, then you’ll definitely want to check out the brand-new Oakbend community.

Oakbend is just getting started, with sales beginning in Fall 2025, and it already has people buzzing. This boutique-style neighborhood will have that same resort-style vibe you love about Palmera, but on a more intimate scale. Two builders will be here, but ICI Homes is the only custom builder in Oakbend—making them the go-to choice if you want a home designed around your lifestyle.

The homesites here are 50 feet wide, giving you more room than many other builders in Oakbend, and you’ll have the option of peaceful preserve or lake views. Just like in Palmera, ICI Homes offers a wide range of beautiful base floorplans that are completely customizable, so you can design your home exactly the way you want it.

And the location? Oakbend is just minutes from Downtown Wellen Park, with nature trails planned to connect the community straight to the action. Whether you’re grabbing dinner, meeting friends for coffee, or enjoying one of the many events downtown, everything you love about Wellen Park will be right at your doorstep. 

The Step-by-Step Process of Building a Custom Home with ICI Homes

If the idea of designing a custom home sounds overwhelming, don’t worry: it’s not nearly as complicated as you might think. ICI Homes has a clear custom home process to guide you every step of the way.

Here’s how it works:

Step 1: Choose Your Homesite

First of all, you’ll pick the perfect lot in Palmera or Oakbend to build your custom home upon. Many of the 75-foot or 50-foot homesites back up to either peaceful preserves or sparkling lakes.

Step 2: Pick Your Starting Floorplan

Every custom home starts with one of ICI’s award-winning base floorplans. Think of these like a canvas. You’re not starting from scratch, but you have the flexibility to modify it however you like. 

There are currently eight base floorplans to choose from, ranging from 2,600 to 4,000+ square feet with 2-5 bedrooms, 2-4.5 bathrooms, 2 car garages, and even  separate casita guest house option. And all fully customizable. Wow. 

Step 3: Dream and Design

This is where the fun begins! Starting with an architect, you’ll map out exactly how you want your home to look and function. You might want to add a game room, move the kitchen, or even expand the garage. No problem – they’ll draw it up. 

Step 4: Finalize Details

Once the big-picture design is set, you’ll work with ICI’s design team to choose your finishes, exterior style, and all the little details that make the home uniquely yours, making sure that everything, from the flooring and tiles to the cabinets and colors, is exactly what you want. 

Step 5: Construction Begins

Your design goes from paper to reality! During construction, you’ll have opportunities to check in on progress and see your vision coming to life. We know how important it is to feel like you’re in the loop at this stage. That’s why, when you work with us, Josh keeps you up to speed with regular meetings, updates, and even video recordings of the build-in-progress. 

Step 6: Move-In Day!

After a final walk-through and closing, you’ll officially have the keys to your dream custom home in Wellen Park. ICI Homes also provides a 2-10 Home Buyers Warranty for added peace of mind.

Not Ready for a Full Custom Build?

We get it—going the full custom route isn’t for everyone. It can be a big process, and sometimes you just want something beautiful that’s ready sooner. The good news is that ICI Homes also offers a selection of quick move-in homes in Palmera and Oakbend too. The inventory changes daily as homes are sold or released, so if you’re curious about what’s currently available, just get in touch with us and we’ll share the latest options with you.

Extra Things to Know Before You Build

Building a custom home is exciting, but it helps to go in with some extra tips in your back pocket.

Timeline

On average, the process from design to move-in takes about 12–18 months. Timelines can vary depending on the scope of your customization, materials, and permitting.

Budgeting for Customization

When you’re designing your dream home, it’s easy to get carried away. Keep these tips in mind:

• Decide upfront which upgrades are “must-haves” vs. “nice-to-haves.”
• Remember that some customizations (like moving walls) are easier to do during the design phase than adding later.
• Factor in outdoor living spaces. Florida life is all about the lanai!

As a point of reference, truly custom homes by ICI Homes, in Palmera, Wellen Park, start around $1.1 million and, depending on the level of architectural customizations, can exceed $2.5million. ICI Homes in Oakbend will start around $800,000 and go up from there. 

Resale Value

A home that’s uniquely yours can also be a big win for resale, especially if you choose upgrades that add long-term value, like expanded living spaces, luxury kitchens, or lake-view lanais.

Life in Palmera & Oakbend: More Than Just a House

It’s worth mentioning again that Palmera is one of the most exciting new communities in Wellen Park. Between the resort-style amenities, lifestyle programming, and the onsite restaurant, it’s designed to make everyday life feel like a getaway. And the new Oakbend community is just as exciting, with the ability to easily walk to dining, shopping and entertainment downtown!

Plus, Wellen Park itself is growing like crazy! With Downtown Wellen bringing in new shops, restaurants, entertainment, and outdoor recreation, you’ll have everything you need just minutes from your doorstep.

If you’re looking for a combination of luxury, lifestyle, and flexibility, building a custom home with ICI in Palmera or Oakbend at Wellen Park checks every box.

Why Choose That Florida Life to Help You Build?

We don’t just write about Wellen Park – we’re part of it. And when it comes to building your dream custom home in Wellen Park, you’ll want someone who knows the area inside and out. That’s where Josh comes in. As a New Construction Specialist, Wellen Park Diamond Club member, and award-winning Realtor, Josh has spent years building strong relationships with the area’s top builders and has an unmatched understanding of the communities, floorplans, and features that make Wellen Park so special.

He’s not just here to show you homes, he’s here to guide you through the entire process, from finding the perfect community and homesite to helping you navigate upgrades and customization options. His insider knowledge ensures you get the best experience possible (and often access to opportunities that others might miss.)

If you’re ready to turn your Florida dream into a reality, Josh is here to make it happen with expertise, insight, and a genuine passion for helping people love where they live.

Ready to Build Your Custom Home in Wellen Park?

Building a custom home with ICI Homes is one of the most exciting opportunities in Wellen Park right now. With larget homesites, lake and preserve views, endless customization options, and a resort-style community, Palmera or Oakbend is the perfect place to make your Florida dream home a reality.

If you’d like to learn more, tour these communities, or see available floorplans, reach out to us now. We’ll walk you through everything, connect you with the right people, and help you start building your dream home today.

The post Building Your Dream ICI Homes Custom Home in Wellen Park appeared first on That Florida Life.

But it isn’t just about picking the prettiest beach or the trendiest town—it’s about finding the right fit for your lifestyle, budget, and long-term goals. Before you leap, it’s essential to understand the key considerations involved in buying a second home in Florida. A few things you need to know include where to buy a vacation home in Florida, the financial aspects, and how to make the most of your investment. 

We know this can be tricky because we’ve been where you are. While we decided to move to Florida permanently, our experience has enabled us to pool all our resources as travelers, realtors, relocation experts, and Florida superfans to support hundreds of people moving within, relocating to, or buying a second home in Florida. So, let’s get to the juicy stuff! 

Location Matters: Finding Your Perfect Spot

Deciding where to buy a second home in Florida is one of the most exciting yet challenging parts of the process. Florida is a large and diverse state, and each region has its own personality and charm, as well as unique attractions and lifestyles. 

The Atlantic Coast

On the Atlantic Coast, cities like Miami and Fort Lauderdale pulse with energy, offering cultural hotspots, nightlife, and stunning oceanfront properties. If you prefer sunrises over the ocean but see yourself in a smaller town, then popular smaller towns near Vero Beach up toward the Space Coast are extremely popular and have some affordable Florida homes near the beach. Even northward toward Flagler and Palm Bay are popular areas that give residents more of a community and even small town feel as well as the chance to live the beach lifestyle. 

Orlando and Central Florida

If you’re drawn to the hustle and bustle of theme parks and family attractions, Central Florida, including Orlando, is a fantastic choice. And for those dreaming of a tropical, island-like experience, the Florida Keys offer unparalleled beauty and tranquility.

The Florida Panhandle

The Florida Panhandle, stretching from Pensacola to Tallahassee, is an excellent option for those seeking a relaxed and affordable second home in Florida. This family-friendly region is known for its sugar-white beaches and emerald-green waters. It offers cooler winters, relatively low home prices, and some of the best places for budget-conscious buyers to buy a vacation home in Florida.

Tampa & St. Pete Areas

The Tampa Bay area, which includes Tampa, St. Petersburg, Clearwater, and Dunedin, is one of Florida’s hottest markets for second homes. This vibrant region combines city convenience with coastal relaxation, making it a top choice for those deciding where to buy a vacation home in Florida.

Tampa offers a thriving downtown, professional sports, and world-class dining, perfect for those who enjoy urban living with easy beach access. St. Petersburg blends culture and charm with its art scene, museums, and stunning waterfront views. Clearwater, famous for its award-winning beaches, is ideal for a tropical retreat, while Dunedin stands out for its quaint, small-town vibe, craft breweries, proximity to Honeymoon Island, and made it onto our 2024 list of top places to live in Florida!

Southwest Florida

Southwest Florida is a top choice for retirees and snowbirds looking to buy a vacation home in Florida—and it’s easy to see why. On this stretch of the Gulf Coast, you’ll find calm waters and a slower pace of life in towns like Sarasota, Venice, masterplanned communities such as Wellen Park, or Naples—perfect for relaxing beach days and upscale living. 

The region also boasts year-round warm weather, pristine beaches along the Gulf of Mexico, and a relaxed, upscale vibe. Naples, in particular, is known for its luxury golf courses, fine dining, and high-end shopping. At the same time, Fort Myers has a more laid-back feel with a thriving arts and cultural scene.

Southwest Florida offers an abundance of parks, nature reserves, and boating opportunities for outdoor enthusiasts. The area is also free of frost in the winter months, making it especially appealing for those looking to escape the cold in a cozy Florida winter home. Home options range from waterfront estates to more modest condos, often within gated communities offering resort-style amenities.

By exploring different regions and considering your lifestyle preferences, you can narrow down the best places to buy a vacation home in Florida. Suppose you’re searching for holiday Florida homes for sale in an area with excellent weather and amenities. In that case, Southwest Florida should be high on your list. Take it from us – we ended up moving here permanently! 

We put together this video to walk you through our top choices for where to buy your snowbird or vacation home in Florida. Check it out and let us know if any of these places feel like a great fit for you!

Budget and Financing a Second Home In Florida

Buying a second home in Florida is a significant financial commitment, so understanding the total cost is essential. Florida’s real estate market is competitive, with home values varying widely depending on location. 

When exploring where to buy a second home in Florida, keep in mind that coastal areas and popular retirement destinations often come with premium price tags, while inland regions such as the Central Florida area or even towns just inland from the coast such as North Port  may offer more affordable options. 

If you would like to finance your purchase, then keep in mind that the down payment required for a second home in Florida will likely be larger than that for a primary residence—typically 20-30% of the purchase price. Options include traditional mortgages, cash purchases, or tapping into your primary home’s equity through a HELOC (Home Equity Line of Credit). As always, be sure to talk more with your financial advisor about which option may be best for your situation. 

Remember to budget for ongoing expenses like property insurance, HOA fees, and maintenance. You may even consider hiring a home watch company that will check on your home regularly for you when you are not there, or even a property management company if you plan to rent it out as an investment too. 

Insurance, in particular, can be higher in Florida due to the risk of hurricanes and especially if you are near the coast. However, new-construction homes are often easier to insure because they meet modern building codes. These homes come with the latest technology, energy efficiency, and structural reinforcements, saving you money in the long run. 

Florida’s Tax Perks: A Major Draw

One of the biggest advantages of owning a home in Florida is the state’s favorable tax climate. Florida has no state income tax, so many snowbirds establish residency here by spending at least six months and one day in the state. Becoming a Florida resident can provide significant tax savings, especially for retirees with investment income.

If you plan to make your Florida home your primary residence, you may also qualify for the Homestead Exemption, which can reduce your property tax bill. However, even as a second homeowner, it’s essential to understand the tax implications of owning property in two states. Consulting a tax professional is a smart move to ensure you’re maximizing your benefits and avoiding surprises.

Florida’s tax perks make buying a second home appealing, whether for investment or personal use.

Weather and Climate: Plan for the Sunshine—and Storms

It’s no secret that Florida’s sunny climate is a major selling point, but it’s not without challenges. It’s important to consider how the climate might impact your home. Hurricane season runs from June to November, so being prepared is vital. 

Coastal properties, while highly desirable, are more exposed to storms and, as we mentioned earlier, may come with higher insurance premiums.

Choose storm shutters, elevated foundations, and flood insurance to protect your investment property. Weatherproofing is critical to ensuring your vacation home in Florida remains secure! New construction homes are particularly attractive in this regard, as they are built to meet the latest safety and energy-efficiency standards.

Weather should definitely be on the checklist when considering where to buy a vacation home in Florida. While all of Florida enjoys mild winters, the southern parts of the state, like Naples or Miami, are frost-free year-round. In fact, many snowbirds refer to this as “below the frost line” and specifically choose this area for that reason!

Areas like Sarasota and Jacksonville have the same average summer high, but Sarasota is, on average, 10 degrees warmer in December.  This is why many retirees and snowbirds gravitate to these southwestern areas. 

Before deciding, use handy online tools like bestplaces to compare different areas’ climates and living costs/quality. Then, spend time visiting your preferred regions during various seasons. This way, you can experience the traffic patterns, weather, and community vibe firsthand.

Lifestyle and Amenities: Choose What Fits You Best

Your second home in Florida should align with how you envision spending your time. Do you dream of living in a quiet, non-HOA neighborhood where you have complete freedom to personalize your property, or are you drawn to luxurious resort-style communities with golf courses, pools, and clubhouses?

Florida offers a wide range of housing options. However, the state is known as having the highest number of HOA communities in the country. Many of them provide shared amenities and maintenance services but incur additional fees and rules. Non-HOA areas, on the other hand, offer more flexibility but require you to handle upkeep and might not be as easy to find in the more popular developed areas.

When deciding where to buy a vacation home in Florida, consider what amenities are essential to you—proximity to the beach, access to boating, or being part of an active adult community with plenty of social opportunities.

Managing Your Second Home in Florida

Managing a second home from afar can be challenging, but Florida offers solutions to make it easier. Many owners hire property management companies to handle maintenance, cleaning, and even short-term rentals. Alternatively, home watch services are popular for snowbirds, providing regular check-ins on your property while you’re away.

If you’re buying a second home for investment purposes, having reliable management services in place can help maximize your returns. We’re happy to connect you with trusted providers to make the process seamless.

Investment Potential: Think Long-Term

While your primary motivation for buying a second home might be personal enjoyment, many buyers choose to invest in Florida real estate for its strong appreciation potential. Coastal properties and high-demand retirement areas hold their value and offer substantial returns.

When looking for an investment property, Florida buyers should evaluate neighborhoods with planned developments, good schools, and desirable features like waterfront access. These factors contribute to long-term growth and make your property appealing to future buyers. 

Liz and I have a ton of experience in this through our relocation and helping others find their perfect Florida home. While it may seem overwhelming with a lot to consider, having experienced relocation experts on your side makes a difference to the experience and the outcome! We’ve helped hundreds of families from all across the country and would love to help guide you through the process too. 

Making the Transition: Embracing the Snowbird Life

Becoming a part-time Florida resident is more than owning a home here—it’s about creating a lifestyle that balances your time between two places. Practical steps like mail forwarding, vehicle registration, and connecting with local healthcare providers can make the transition smoother. Many snowbirds also enjoy connecting with their new communities through social clubs, volunteer work, or simply exploring local attractions.

As relocation specialists, we’ve helped countless individuals and families move to Florida. Whether purchasing a second home or planning a complete relocation, we’re here to guide you every step of the way.

Ready to Buy Your Second Home in Florida? 

Buying a second home in Florida is an exciting opportunity to enjoy the state’s warm weather, vibrant communities, and tax benefits. Whether you’re looking for holiday Florida homes for sale, planning to invest in Florida real estate, or simply want a relaxing retreat, careful planning is key.

If you’re ready to take the next step, let us help you find the perfect property. With our expertise in second-home purchases and relocation, we’ll ensure your journey to owning a vacation home in Florida is as seamless and enjoyable as possible.

Just click here to contact me directly and get started on finding your perfect second home in Florida!

The post Buying a Second Home in Florida: What Snowbirds and Vacation Homebuyers Need to Know appeared first on That Florida Life.

This is called a Deed Restricted Community. 

There are an incredible number of deed-restricted communities in Florida. So no doubt, if you are looking to buy a house in Florida you will stumble across these neighborhoods. In many cases, you will find that deed restrictions control the extent to which you can make changes to your home. Unfortunately, while deed-restricted communities are commonplace today, many people do not understand them. Below, we help you understand everything you need to know about deed-restricted communities and what you need to consider before you buy a deed-restricted property.

What is a Deed Restricted Community?

To understand deed-restricted communities, you need to understand deed restriction.

A deed restriction is alternatively known as a restrictive covenant. Restrictive covenants are put in place to limit how much a homeowner can adjust their property. These are usually created when homes are sold with specific restrictions. There is a registry of deeds where the restrictions are recorded, and the deed will legally bind the current and all future property owners. The terms of a deed restriction can only be changed by the HOA that created it.

Usually, these restrictions are found in neighborhoods with a homeowners association; in such cases, the associations are generally the ones who create the deed. In other cases, these deed-restricted neighborhoods exist in historic urban communities and may have been in place for years. Yet another possibility could be in the rural settings where there may be two neighboring farms whose owners made a deal years ago, and the deed is still in force. In Florida, deed restrictions expire after 30 years, according to the 1956 Marketable Record Title Act.

Note that these restrictions “run the land,” a phrase that means that it applies to the current property owner and all the future ones. The scope of the limitations within the deed limits can be varied and might shock you. However, you may not do much in many cases, as changing these provisions may imply legal costs, time, and effort.

Examples of Deed Restrictions

Deed restrictions limit what you can and cannot do to a particular property. We give examples of the most common deed restrictions below so you can understand them better:

Adjacent Structures

If you would like structures such as detached garden sheds, detached workshops, pools, and garages, it would be beneficial to find out whether there is a deed restriction in the area because these are controlled and, in some cases, completely forbidden.

Many deed restrictions for adjacent structures would expect you to follow a particular design and dimensions and even specify the structure’s location on your property. The deed may also contain restrictions on what portion of your property you can build. However, some conditions can feel outrageous. For example, it may feel unfair if the homeowners association in your area insists that you disassemble a tree house.

Fences

If you come across a deed restriction with a clause on fences, it will likely be about the acceptable types of fences. For example, tall privacy and chain link fences are usually restricted. Additionally, the deed may state that the front yard fence should not be more than 4 feet and the back one not more than 6 feet.

Fences may not look like a big deal as most people feel that the more significant chunk of the work is in the building of the house. However, it would help if you looked into this as sometimes fence restrictions on a deed may affect the quality of life. For example, if you cannot erect tall fences, you may not enjoy sunbathing, and if you cannot use chain links, you may have trouble confining your pets.

Trees

In some cases, deed restrictions may prevent you from removing a percentage or all of the trees in your compound. Neighborhoods with such restrictions do this to preserve the area’s residential look or keep the community environmentally friendly.

Interestingly, this restriction is common in larger developments and suburban neighborhoods but can also be found in rural places.

Obstruction of Views

Some deed restrictions may limit you from obstructing a neighbor’s view, which is quite understandable as it would be unfair for a neighbor to come in and build a three-story house that will block the view from the surrounding homes.

You may find a deed that has existed for decades with this kind of agreement, especially in resort and vacation destination cities where a view of the beach or the mountain is crucial. It can also be expected in places with lakes, golf courses, and distant mountains.

Some of these restrictions may affect the dimensions of your house, making it crucial that you check if there is a deed restriction with this specific restriction.

Color Choices

Some deed restrictions may affect your color choice. They can even provide a list of the approved or non-approved colors.

However, the restrictions do not end here. Some others may come in the form of stone or brick choice. These usually go into detail. For example, a certain percentage of your house’s exterior may need to be built with a particular stone.

Pros and Cons of a Deed Restricted Community

While you need to exercise a high level of caution before choosing a neighborhood with deed restrictions, it’s not all gloom and doom, as living in such restricted communities has some benefits. Below, we explain both the advantages and disadvantages of a deed restriction to help you make an informed choice:

Benefits of Living in a Deed Restricted Community

Amenities

Deed-restricted communities tend to come with facilities and amenities that improve the quality of life. They include gyms, swimming pools, clubhouses, and parks with limited access to outsiders.

Dispute Resolution

Since homeowners associations are usually present in places with deed restrictions, you get the added benefit of conflict resolution in case you get into a disagreement with your neighbors. Furthermore, the chances of disputes are low because there will be guidelines for most issues that would cause conflicts.

Maintenance

Many homeowner associations will provide property maintenance services for properties under deed restrictions. Therefore, you may not have to worry about snow removal in the winter or landscape maintenance. An added benefit is that such properties tend to have better aesthetics as maximum uniformity leads to better curb appeal.

Property Values

While each of the points we mentioned above is worthy on its own, specific rules mean that a neighborhood will always be well kept, reducing blight likelihood and maintaining the property’s value.

Drawbacks of Deed Restricted Communities

Limited Freedom on the Use of Property

From the examples of restrictions we have given above, it is clear to see that one of the most significant drawbacks of living within such communities is that you are limited on how you can adjust or use the property. Depending on your homeowners association, you might also be required to mow your lawn regularly.

Difficulties Selling the Property

It can be challenging to sell your investment property if you live in a deed-restricted area. For starters, many people do not like to feel like their options are limited, especially when buying a home. Furthermore, some specific restrictions may limit the pool of potential buyers.

Consequences

Deed-restricted communities impose penalties for violations when homeowners act contrary to the deed restriction. In extreme cases, the association can foreclose your home.

Why are There So Many Deed Restricted Communities in Florida?

You may have lived in a state where deed restrictions are rare. However, deed restrictions are not new in Florida and have been continuously becoming popular in the US since the 1970s. Today, Florida is one of the states with the largest HOA communities. This popularity is primarily due to private companies and developers entering the area.

Each community has deed restrictions that favor its objectives and can be found in manufactured homes, neighborhoods with homes for sale, home sites, and lots. The most common ones will determine the dog breed and the number of pets you can keep in the house, state of repairs in the community, paint colors, common area rules, lawn maintenance, whether you can rent the property, and the uses of the property.

What is a Homeowners Association? (HOA)

A homeowners association is a self-governed organization. These are found in common-interest communities such as deed-restricted developments, where homeowners collectively pay fees for neighborhood maintenance. HOAs are run by unpaid volunteers who are usually resident homeowners. They often elect a board of directors that will run the HOA.

Usually, the responsibilities of an HOA will depend on the type of property and these properties will be guided by rules and bylaws enforced by the association. Property owners will be required to pay HOA fees to cover the maintenance and use of common areas. HOA fees also commonly act as reserve funds.

How Much are HOA Fees?

This can vary widely depending on the neighborhood. As a homeowner, if you buy into an older neighborhood without a lot of community amenities, then you could pay as low as $50 per year. However, many HOA fees fall into the range between $200 and $5000 annually for assessments, fees, and costs.

The amounts may vary depending on the amenities offered by the community. However, the most common costs you expect to pay will cover garbage pickup, landscaping and pest control, common areas, and safety and security fees.

You can expect that neighborhoods with extensive amenities will charge more than those with fewer restrictions. In addition, you may have to pay assessment fees occasionally, for example, in cases where an unanticipated problem or natural disaster results in the need for significant repair. The HOA is given the power to levy a one-time special fee to cover the costs. These can be minimal, or they can be a sizable chunk of money if it is a large repair – such as repaving roads in the neighborhood!

Mortgage Approval

You must factor the effect of a community’s HOA into your overall finances as you begin your home-buying journey. Even the banks will consider the monthly HOA fees when deciding the fate of your mortgage application and how much they will give you. In some cases, you may be left with a smaller approved amount to spend if you choose a property with higher HOA fees than one with lower or no HOA fees.

Not All Deed Restricted Communities are the Same!

Deed restrictions are generally meant to keep up specific standards for the community, which will help keep up property values in the area. However, this does not necessarily mean that all deed restrictions are identical. In fact, restrictions differ widely from community to community.

Therefore, you must find out whether the place you intend to buy a house has deed restrictions and then determine whether you can live by those rules. You may find that some communities have just basic restrictions that you feel you would have no problem living with. However, you could also find a community with a lengthy list of rules and restrictions and who are extremely strict about enforcing them!

Some home buyers might not like the specific restrictions in a community. And since all neighborhoods can vary in what they restrict, it’s extremely important to review all the details ahead of time.

You Must Budget for HOA Fees & Assessments

In many cases, HOA fees are paid monthly. However, in other cases, there may be quarterly and annual payments, and the association can levy special assessments when reserve funds cannot cover a major repair such as road or roof repairs. These fees vary widely depending on the community, property, amenities, and facilities. As we mentioned earlier, the budget may be between $200 and $5000+. However, the more the amenities and facilities, the higher the fees you should expect to pay.

You must budget for HOA fees and assessments before settling for a house. The last thing you want is to buy a home and then realize all the additional fees for the HOA are causing you to have a tighter budget than you anticipated.

What is a CDD Fee & Is It Different Than an HOA Fee?

CDD stands for community development district. This government entity is created when an extensive land tract developer requests one. Then they are tasked with planning, constructing, financing, maintaining, and operating infrastructure and amenities in the development area. Finally, the CDD assesses community members’ fees for amenities and infrastructure.

However, CDD and HOA fees differ because the former is incorporated into the annual property tax bills, while HOA fees may be paid monthly, quarterly, or yearly to maintain the community.

CDD will cover general maintenance, infrastructure, community amenities, and water and sewer and is standard in developments built post-2003. Typically, these fees will vary by the type of development. They are also determined by the loan taken from the county. This amount is divided by the number of homes that repay the loan. The fees take up to 30 years to pay. Therefore, if you move to a community that is five years old, you can expect to pay the fee for 25 more years until the loan is done.

The county will typically add CDD fees to your property tax yearly and are tax-deductible like property taxes. The costs of improvements will not be included in the initial house sale price. Mandatory disclosure in the purchase contract will let buyers know if the property they buy is part of a CDD. When you are searching for a home, be sure to ask if there is a CDD and obtain the details on those specific costs so you can factor it into your annual budget as well. 

Many of the newest master-planned developments around Florida have CDD fees. This includes popular areas of southwest Florida such as Lakewood Ranch and Wellen Park!

You May Need HOA Board Approval to Buy a Home in a Deed Restricted Community!

In Florida, HOAs have legal rights to decide who can rent or buy a home within their communities. Therefore, it is not uncommon to find the HOA requesting that you submit an application that they will review. Since these communities have criteria outlined in their governing documents that you must meet, they can accept or deny your application. However, their decision should be in line with the Fair Housing Act and should not be discriminatory based on sex, color, race, disability, religion, or status.

If your application is denied, the HOA must disclose its screening process according to its governing documents and explain the reasons for rejection. If this does not happen, it is well within the rejected buyer’s rights to pursue a discrimination lawsuit against the HOA.

Some of the common reasons why applications are denied include;

• Predisposition to violation of rules and regulations, especially if the applicant was a former renter that has violated the rules before.
• The applicant violated one of the rules in the HOA’s governing documents.
• Misrepresentation of the applicant’s application, such as hiding a criminal history
• Conviction of a felony

Tips for Buying a Home or Condo in a Deed Restricted Community with an HOA

Check the Covenants, Conditions, and Restrictions before Buying

One of the essential pieces of advice you can get before settling in a deed-restricted area is to read the fine print carefully and understand them because you will need to comply once you buy the house. Consider whether any of the terms may affect your lifestyle or if there is a particular one you do not like. You can research the deed restrictions in the community you are interested in, although they will likely reveal it before you make an offer. Talk to your real estate agent to confirm details about any restrictions before moving forward with purchase plans.

Ensure that You Can Pay Additional Assessments and Fees

You need to understand how much the HOA fees are and what they are for. You also need to know how often you will pay the fees and the penalties for late payments. Do not be afraid to dive into questions such as whether the association has scheduled to raise the HOA fees and ensure that you can keep up with the budget.

Check If there are On-Going Disputes

It pays to know whether the HOA has disputes with homeowners. In many cases, you will find uncomplicated issues such as parking violations, and rarely will you find serious ones such as the embezzlement of HOA fees. In addition, you can check social media groups and pages to ensure there are no public complaints or significant lawsuits.

Do The Rules Align with Your Goals and Values?

Paying HOA fees is excellent if you will be making use of the facilities in the community. It is still okay if you will not be utilizing one or two. However, you need to ensure that the money you are paying works for you, so you are not wasting money. Furthermore, you must ensure that your community’s rules align with your goals and values and that you will be happy living in the community.

Is Buying a House in a Deed Restricted Community in Florida Right For You?

Living in a deed-restricted neighborhood is an excellent way to maintain property values and keep the community or development appealing. Especially here in Florida where there are some truly gorgeous resort-style developments that make you feel like you are on vacation every day!

If the association works well, you will enjoy high-quality life. However, it would help if you were sure the community you are getting into aligns with your values, so you enjoy living there. You also need to ensure that you can pay the fees without strain on your budget and check for any disputes between the HOA and homeowners.

The post Deed Restricted Community & HOAs: What to Know BEFORE You Buy appeared first on That Florida Life.

NOTE: if you are relocating to Florida or buying a second home here, then you might also want to check out our other related post that specifically answers some of your top questions about buying a home in Florida.

In this post, we’ve outlined all the steps that you should take if you are planning a buy a house so that you can be fully understand the process and be prepared and be able to secure the property you want!

How Long Does it Take to Buy a House?

When it comes to the timeline for buying a house, there are really three main parts:

1. Purchase Planning & Preparation (up to a year or more)
2. Searching & Touring Properties (varies – could be up to a year or even just a month or two)
3. Offer Submission, Acceptance & Closing (usually 30 – 45 days)

What tends to take the most time for people is the first part, doing the research and the preparation. The latter part, actually putting in offers and closing on a home, can actually go pretty fast if you are ready.

We will go through all these steps more in-depth further during the rest of this post.

Home Buying Process Timeline:  Purchase Planning & Preparation

The time it takes for you to plan, prepare and save for a home will vary from person to person. In general, most people likely start planning for a home purchase up to a year or more in advance. The main factors that can affect this timeframe are your credit, how much money you have saved, and of course how urgent your need is to buy a house.

If you have great credit and have plenty of money already saved up, then you could be ready to start looking at homes right away. However, if you need to save up money or work on rebuilding your credit score, then it might take you a year or even longer.

Regardless, you can see there are a few factors that can affect how long this part of the home buying process takes, and it really is dependent upon each individual situation. In general though, we would say somewhere around a year (more or less) is something you can plan on.

1. Check Your Credit (If You Need a Mortgage)

While your actual credit score could vary depending on the model of the credit score, in general, those who have a credit score between 580 to 669 are considered satisfactory or fair; 670 to 739 are considered good; 740 to 799 are considered extremely good while 800 and above are considered as having an excellent credit score.

The better your credit score the better chance you have at getting approved for a mortgage with a favorable interest rate. 

Things that you can do to improve or maintain your credit score are by paying your bills early or on time, get rid of your debts as soon as you can, ensure that your credit card balance is lower than the limit, and checking your credit reports periodically. If you don’t have a great credit score, then you may need to take some time to improve your credit so that you can get a better rate and improve your chances of getting a mortgage.

2. Get Out of Debt!

For the most part, debt is a critical threat to your overall financial stability. Debt limits your ability to make the most out of your hard-earned money, because you may not qualify for a home loan if you have too much debt. Plus, it might be difficult to pay for your home and all the expenses that come with your home if your are paying a lot of money towards debt.

Just imagine how much money that you could save towards your retirement or children’s education, or even a home if you can get rid of your debt.

Having a lot of debt is really going to impact your ability save up money to buy a house. One strategy to get rid of your debt is by paying off your debts that have the highest interest rate first. The reason for this is that this type of debt is the most expensive and is the one that is responsible for taking your money away from you, and the most logical thing to do is to pay off the most expensive ones first before you move on to the other.

Another option is the “snowball” method, where you just tackle the smallest debt first by paying as much toward it as you can. Then after you pay it off completely, you can apply all that money toward the next lowest debt until you are paid off. Once you are paid off, then you can take all that money and start saving it up for your next home!

3. Understand Your DTI (Debt-to-Income) Ratio

DTI or debt-to-income ratio is the total amount of money you owe on debts monthly divided by your monthly gross income (income before taxes). This DTI ratio is used by lenders to determine your overall borrowing risk. The lower your DTI ratio means that the easier it is for you to secure attractive loans from lenders. Generally speaking, 43% DTI is about the highest any lender will go and still qualify you for a mortgage.

However, keep in mind that many lenders will typically look for those that have a DTI ratio of 36% and below. A low DTI ratio is important to lenders because it indicates that the borrower has proven their ability to handle their monthly debts effectively and has enough income to handle additional mortgage debt.

Once you understand this ratio and have calculated your DTI, then you should be able to see at a glance whether or not you would even be able to qualify for a mortgage on a home. And you don’t, then you will be able to see right away if you need to make improvements to your financial situation and you will have a goal to shoot for!

4. Start Saving Money for the Down Payment

Once you know if you are able to qualify for a mortgage to buy a house, then you should really double-down on your savings. It’s important to save as much money as you can to cover both the down payment on a home, as well as additional moving and move-in expenses. You will also want to make sure you have plenty of money left over after all these expenses in case there are any emergencies that come up!

At the end of the day, there are two ways to save money. One – to earn more money…which is not always possible. Two – to cut expenses.

For many of us, one of the easiest things we can do to start saving money is by cutting down on monthly expenses. You could stop going to the gym, cut your cable service, skip eating out at restaurants, eliminate a Starbucks or other unnecessary spending on sweets and treats. You could also switch to generic brands of groceries, make grocery shopping lists and stick to them, and basically eliminate all other non-essential shopping.

If you do want to earn more money, some ways you could do that include picking up a part-time job or even just doing some side “gig” work, such as driving for Uber, food delivery service, or just helping people around their homes doing yard work, cleaning, etc. You might even be able to sell some things you don’t need or offer some type of service from friends and family.

How Much Money Do You Need to Buy a House?

Typically, conventional mortgages require you to put a down payment of 20% of the purchase price of the home. This money is due at closing. So for a $200,000 home, you should expect to put $40,000 down. There are some programs where you can put down less money for a home, which we will talk about in the next section.

Your down payment reduces the amount of the loan you are taking out, which in turn will reduce your loan expenses because you will pay less interest over time as well. While 20% is the standard for a conventional loan, some people opt to put even more money down because they want to take out a smaller loan and have lesser payments. It’s totally up to you!

How Much are Closing Costs?

You are also going to need money to cover your closing costs. Closing costs are in addition to your down payment, and these costs can range anywhere from 2% to 5% of the loan or home price. Closing costs include fees paid to your lender, and they may also include title company fees, etc. So this means that on a $200,000 home, you should estimate needing another $4000 – $10,000 in closing costs.

Depending on your market, you might be able to ask as a part of your offer to buy the home if the seller will pay the closing costs. It’s not always possible, but if the seller agrees to it then it can really save you a lot of money during the transaction.

In the end, we highly recommend that you save plenty of money to cover your down payment, closing costs, as well as extra money for things such as inspections, etc. There are a number of costs that can come up with buying a home, and these are all in addition to your moving expenses. Plus, you will also want to have money saved up for any other emergencies that may come up, even after you buy the home.

5. Consider Down Payment Assistance Programs

There are a number of down payment assistance programs out there that are designed to lessen the financial burden of buying a home, as long as you qualify. Each of these programs have their own set of eligibility requirements and offer different amounts for down payments. One of the most popular programs here in the States are for first time home buyers, called FHA loans.

FHA loans are completely insured by the Federal Housing Administration and help first-time homebuyers with a minimum credit score of 580 to buy a home with only a 3.5% down payment. This is really helpful for those who are trying to save up to buy their first home. It means that on a $200,000 home the down payment would only need to be $7,000 instead of $40,000 (as required with the conventional loan with 20% down). Those with a credit score of 500 to 579 are also eligible to get an FHA loan with at least a 10% down payment.

Listed below are a couple other options for down payment assistance available to those who qualify.

• USDA Loans – Guaranteed by the US Department of Agriculture
• VA Loans – Guaranteed by the Department of Veteran Affairs

6. Decide on a Budget

Once you understand your credit, your financial situation and know the amount of money you will have for a down payment, you can set your budget. To achieve this, we recommend that you use an online calculator such as the home affordability calculator made by NerdWallet. This calculator may help you with customizing the monthly payment of your house based on your income, down payment, location, credit score, and debts.

Using these types of online calculators are great and can really help you to see how much house you can actually afford to buy. And keep in mind any additional expenses you are adding to your money budget, including home insurance and taxes!

Cost of Living Research

If you are moving to a new State, like Florida, or even if you are moving to a new town it’s important that when you are coming up with your house budget that you research the cost of living. If the cost of living is higher or lower than where you are coming from, then that could actually have an impact on how much you can spend on a house.

For example, the cost of living in Florida is overall lower than many other states in the US. But it’s still higher than other states. And even within Florida different towns and areas can vary drastically. So it’s really important that you do this research ahead of time before you buy your home.

Home Buying Process Timeline: Searching & Touring Homes

Now that you have been working on your financial situation by reducing debts and saving up money, you should have a reasonable idea of how much you can spend on a home. Knowing what you budget is will help you narrow down your search and keep you reasonable when it comes to actually touring homes.

When it comes to researching or looking at homes, this can also vary depending upon how picky you are and when you happen to find the right home within your budget. It also depends on if you need to move right away, or if you are not in a rush and can take your time to find just the right home.

Everyone’s situation is a bit different. So when it comes to the process of searching and touring homes for sale, some people could take a year or so. Others might only take a few weeks or a months to find the right home.

It’s really all about timing and being prepared. Below are some steps to take to make sure you are fully prepared during the home search process:

1. Browse Homes and Neighborhood Online to See What You Can Afford

Now it’s time for the fun part, browsing for homes!  Online real estate websites make it easy for you to search available properties in Florida or in a specific town or neighborhood. You can also filter by price and features, and some of the best listings will include a ton of photos and maybe even videos or 3-d walkthroughs!

When browsing these homes, list the pros and cons of each house based as well as how they will fit with your budget and lifestyle. In general, a townhome or a condominium is usually more affordable compared to a single-family home. However, sharing the walls together with your neighbor means that you will have less amount of privacy for yourself.

Keep in mind also when you are looking for homes that some homes in certain developments or gated communities may have additional fees, such as a homeowners association. You will need to add these to your budget to make sure that you can still afford the home.

This is also a great time to decide whether you want a move-in-ready home, which may cost more money, or if you are open to purchasing a fixer-upper, which could be cheaper but requires some repairs or updates.

2. Monitor Your Target Home Market

When you know your area, the type of home you are looking for and your budget, then it’s advisable that you monitor the market. There may be times when the prices of the homes in the area that you plan to buy are offered at better prices, or maybe you can see a trend that they are all moving upwards.

For example, once we decided to move here to Venice, Florida then we were constantly checking in on the area. We were keeping our eyes out for homes, but we were also looking at things like how fast they were selling and even looking at past sales data to see if prices seemed to be going up or down. This helped us to feel comfortable when it was time for us to jump in and buy our house.

Apart from that, you need to take a closer look at how fast these houses are selling. If the houses that are selling like super fast, then you know that the market is quite competitive. This means that there could be pressure from multiple buyers that will push prices up, and it could lead to bidding wars or you losing out on a home you love if you don’t jump on it fast enough.  However, if you see that homes are staying on the market for a while, then you know that you might have more time and maybe even be able to get a favorable deal on the home.

3. Talk With Lenders and Research Loan Program Requirements

If you haven’t already, one thing that you should do before you get yourself too involved in searching for homes is to consult with mortgage lenders and research loan programs to determine the best option for you. One of the reasons why you need to talk with your bank or even a mortgage broker is to see what types of loans you would qualify for given your situation.

Also, this is a great time to inquire more about specific eligibility for down payment assistance programs and what you need to do or provide to them as a part of the loan process. For example, there might be specific requirements if you are looking to go for a VA loan or FHA loan. You can also inquire about interest rates and begin to get some of your documents together that you will need to apply.

4. Get Pre-Qualified / Pre-Approved for Your Loan

Getting a pre-approval letter from your mortgage lender is a critical step to show you are serious about purchasing home. This is a pretty easy process and it just requires you to send over some basic financials and should you meet the basic lending qualifications, then your lender will provide you with a pre-approval letter. However, this is just a preliminary approval – it does not mean you have actually applied and gotten the loan. Actually getting the loan is still subject to a more in-depth process that will happen later.

Most sellers will expect you to have the pre-approval letter submitted with any offer to buy a home, this way they can ensure that you are serious and capable of applying for the mortgage. 

There are a total of five essential things that you need to have for your pre-approval letter. You’ll need a good credit score, proof of income and assets, letter of employment verification, and other types of documents such as your driver’s license. If you don’t have much time and are busy with your work, you may choose to apply for a pre-approval mortgage online to save you the hassle of going to the bank manually though it’s highly recommended for you to consult a lender to discuss more the budgeting and loan options directly with them.

We are happy to provide you with some suggestions for reputable mortgage partners you can use here in Florida, but you are in no way obligated to use them. Just let us know!

5. Find a Real Estate Agent Who Helps You (Not Just Sells to You)

A great real estate agent is someone you can really trust and count on. They are there to help you…not sell you!

They should be someone who is there for you during the home buying process. A good agent should take the time to get to know you and listen to what you are looking for in a home. They should also be able to advise you during your home search and guide you along in the process, as well as sharing their local knowledge about the area and neighborhoods.

They are on your team. A good agent is there to help you get the best deal you can and watch out for your interests. It’s also really great to have someone working on your behalf and be the buffer between you and the seller or even the seller’s agent.

Sometimes real estate agents get a bad wrap. Which is a bummer because there are some really amazing real estate agents who are assets to their clients in helping them during the home buying process. But it’s true that not all real estate agents are the same and some will definitely be better than others!

If you are looking to buy a house in Florida, give me a shout. I am a licensed real estate agent in Florida. I’m happy to help answer any questions you have or assist you in finding your dream home in Florida!

LEARN MORE ABOUT ME HERE!

6. Start Touring Homes With Your Realtor

Once you have found a great real estate agent that you are comfortable with, then it’s time for you to start really looking at homes! Your agent is there to help you by booking appointments to go look at houses.  They can also help by contacting sellers to inquire about the listings and confirm details and get answers to questions you have about particular properties.

Your agent should be able to recommend homes for you, but you can also easily search properties online and if you find a home you want to see, you can just send the listing over to your agent so they can set up a time to get you inside to check it out.

Home Buying Process Timeline: Offer Submission, Acceptance & Closing

Now, the process of buying a home actually can go pretty fast once you are ready to go after a property. Depending upon your local market, there could be competition for buying a great house, especially if it’s a good price and in a good location. It’s advisable that if you find a property you really want that you move on it right away by making a reasonable and fair offer.

This is where a great real estate agent can help you out because they can advise you on the terms that will help get you the best deal while also ensuring it’s reasonable and gives you a good chance at getting accepted.

1. Be Prepared to Put in an Offer & Put Down Earnest Money

Even after all this work, this can still be the hard part for some people. Once you have found the right house, then it’s important for you to psych up and prepare yourself to put in an offer and put down the earnest money! It’s a HUGE step, we know! But you’ve gotta be prepared mentally to do it, otherwise, if you hesitate, then you might just end up losing the perfect house that you really wanted!

It’s understandable to be hesitant because this is a big purchase. But you have to put faith in yourself and the fact that you have done a ton of research already. You’ve gone through the process, you know your budget, and you’ve found the house. Hesitating and doubting yourself will just stress you out and ultimately, it won’t get you where you want to be.

So as long as you prepare yourself mentally for this moment, then you should be confident to move forward. 

And you should do it with excitement…you are buying a house!!!

2. Offer Accepted, Inspections, Financing

Typically sellers will review and notify you within a day or so if your offer is accepted, unless they have already specified a date when they will make the decision. Once they accept the offer and everyone has signed it then you are officially under contract!

Real estate is a large purchase, so even though you are under contract there are still some things that need to take place. Things like inspections, finalizing the mortgage, getting insurance, titling, etc. For this reason, many contracts will specify a “closing date” for the house. Most home purchase contracts (at least here in Florida) will have either a 30 day or 45 day close. Sometimes cash deals can close earlier, but it all depends.

All of this is to ensure everything can be accomplished in time before closing, which is when you will officially get the keys!

3. Closing

Typically, most homes will close right around 30 days. Sometimes the closing could be extended out longer, such as 45 days, to ensure there is enough time to get the loan together if it is a busy time or if it’s a complicated loan situation. There are other reasons that closing could be extended out to another date as well, for example, if the buyer and sellers agree on a later date to give enough time for people to move, etc.

Once everything is completed, then you should get the “clear to close” which means that it’s all completed and ready to close the transaction and collect the money (whether it’s a cash purchase or a downpayment)!

Closing is technically the date when you will be given the keys and officially own the property!

The Overall Home Buying Process Chart

In general, these are the steps that you will need to take as a part of the home buying process. We’ve put them here into a chart for you, so you can save the image for future reference or pin for later!

How Old Do You Have to Be to Buy a House (in case you are curious)

For some of you who might be interested to know, in most states of the US you will need to be at least 18 to buy a house. This is because the process requires you to sign legal contracts and get a loan. Although, you could technically own property as a minor or have your name listed as an owner as long as you are able to get an adult to sign with their consent as well.

The Actual Home Buying Process Moves Fast in Florida – So Be Ready!

In the end, when it comes to buying a house the process is not as complicated as it may seem. As long as you have done your research and understand how the overall process of buying a home works, then you should be prepared for what comes your way. When it comes to buying a home in Florida, there are some additional things you should know – especially if you are buying from out-of-state.

But once it comes time to look at homes and start making offers, the home buying process in Florida actually moves quite fast! And a good real estate agent will be with you every step of the way to make sure you feel good about everything, have a clear understanding, and are happy about securing just the home you were looking for.

Here to Help You!

If you are preparing to buy a home here in Florida, no matter if you are in the beginning stages and just want to talk it out and ask questions, or if you are ready to go out and look at properties, I’m here to help! As a licensed real estate agent here in Florida, I’m more than happy to chat with you and share my knowledge to help you narrow down your search and book appointments for you to see properties.

My goal first and foremost is to help you live that Florida life you have been dreaming about!

The post How to Buy a House: Preparation & Process appeared first on That Florida Life.

Understanding the home buying process here in Florida can really help to set your expectations and ensure that you are prepared for whatever comes your way.

How to Buy a House in Florida?

Buying a house is usually a fairly complicated matter regardless of where you purchase it. And laws can vary by country and by state. If you have bought a home before elsewhere in the US, then the process of buying a home in Florida may be similar in a number of ways.

However, if you have never bought a home before, be sure to check out our comprehensive post all about the things you should do to prepare to buy a house and to help you understand the home-buying process before you dive into it.

Requirements to Buy a House in Florida

Before we get into all the steps in the process, let’s take a moment to talk about some of the requirements & questions that we often get asked about buying a house in Florida.

Do You Need a Lawyer to Buy a House in Florida?

It’s funny because we’ve actually been asked this a few times recently. Mostly these were buyers who were from other states, such as New York. Apparently, in some states (like New York) you need to have a lawyer involved in real estate transactions by law. However, in Florida, that’s not the case. Real estate is a much more laid-back process in Florida and lawyers are NOT required to be involved.

So no need to worry about that!

Can I Buy a House if I am Not Located in Florida? (Out of State Buyers)

We get this question a lot because a lot of people are looking to either relocate to Florida or buy a second or vacation home in Florida. You do not need to be a resident of Florida to buy a house here, nor do you even need to be physically located in the state of Florida.

It is totally possible to shop for houses in Florida remotely online and then have a local realtor in Florida go out in person and help you with the deal. A great Florida realtor will be able to go on a “virtual” showing of a house, they may do a live video tour with you to see the house, or they may take a video and send to you as well as photos. They can even help you with the contracts, inspections, and more.

Essentially, some of the best realtors in Florida work with out-of-state buyers all the time! They know exactly what to do to help be your “eyes and ears” here in Florida and work with you from a distance to guide you through the whole process.

What if I Want to Buy a Second Home in Florida or a Vacation / Investment Home?

Florida is an incredibly popular place to buy a second home. Some people want to purchase them just for vacation use, others plan to live in them for just part of the year, possibly as “snowbirds” during the winter season. Others might even want to use them as investment properties and rent them out to others to help pay for them.

In general, the process for buying a second home in Florida is similar to buying any other home. The only difference might be in how you pay for it. If you have cash, then that’s easy. But if you are financing then you will be subject to different requirements, and they tend to be more restrictive. You also need to keep in mind any tax implications involved.

How Old Do I Need to Be to Buy a House in Florida?

Because you are signing legal contracts, the age to buy a house in Florida is 18. However, like many states, it’s possible to buy a property at a younger age if you have other legal guardians co-sign on it.

Look at Your Financial History

When you get ready to purchase a new home, the first thing you need to do is take a look at your financial history. When lenders start considering giving you a mortgage, they’re going to dive deep into your finances over the last few years. It’s better than you have a solid picture of what’s going on in your finances before you start this process.

The quickest way for you to get a picture of your overall financial health is to take a look at your credit score. You may be able to check your credit score through your bank; avoid going through credit score websites unless they confirm the check will not have an impact on your score itself. The higher your credit score, the lower your interest rate will be.

What Credit Score Do I Need to Buy a House in Florida?

This really depends. If you have the money to pay for your home outright in cash, then you may not need to even worry about your credit score! But if you are taking out a mortgage, then it will depend on your lender and the type of loan you are getting. For the most part, it is generally known that anything less than a 620 credit score may have a difficult time securing a mortgage. However, there are some lenders that might be willing to go lower than that and there are some programs out there that may help. For example, a government FHA loan for first-time homebuyers can accept credit scores as low as 580 and only require a 3.5% down payment.

However, keep in mind that if you are buying a second home it will be considered an investment property. Credit scores, interest rates, and down payments could be completely different in this type of scenario because it’s not going to be a traditional loan.

Different Financial Requirements  for Buying a Second Home in Florida

As mentioned above, buying a second home or vacation house in Florida is seen more as an investment. Investment properties and vacation homes have a different set of financial requirements involved, especially if you are taking out a loan to pay for it. Having a second home will also impact your taxes as well, so it’s important to research and consider these things before jumping into a purchase.

Figure Out Your Budget & How You Want to Pay

Once you have a solid handle on your financial health, you need to take a look at your budget. How much house you can afford will depend on a number of factors, beginning with what cash you have already saved up and what sort of interest rate you can expect if you are taking out a mortgage. If you are paying cash, then that’s a pretty easy estimation of your budget. But if you are like most people and plan to take out a mortgage, then you’ll also need to look at your down payment, property taxes, home insurance costs, and more.

Figure out how much you want to spend each month on your mortgage – in general, you want to spend no more than a third of your monthly net income. You’ll also need to consider how much money you’ll be able to put as a down payment, keeping in mind that you want to aim for at least 20 percent of the home price. Use a mortgage calculator to add in your tax and insurance costs and figure out how much house you can afford.

How Much Money Do I Need to Buy a House in Florida?

It is possible to pay for a house in cash, and that’s the easiest deal out there to make. Because Florida is quite popular for retirees, cash deals are actually quite common in certain parts of Florida because chances are that older populations have already paid off their previous home and can use that cash to buy the next one.

However, it’s understandable that a lot of people out there (especially younger people) do not have the cash to buy a home outright. Most people choose to finance their home purchase with a mortgage. There are many different lenders out there and different mortgage options. Each mortgage program might have different requirements for down payments, credit scores, etc. in order to qualify.

It’s really best to check with your bank, or you can use a mortgage broker to “go shopping” for mortgages and compare all the different rates and terms you can qualify for.

In general, for most conventional mortgages you will be required to put down 20% of the purchase price as a “down payment.” Essentially, this would be the minimum cash amount you would need to pay in order to buy the home. However, this doesn’t include additional fees such as home inspections, closing costs, etc.

Again, there are programs out there that can help assist you with lower down payment options, such as VA loans for veterans or even FHA loans for first-time homebuyers. For those who qualify, these can be great options for getting into a home at a lower down payment.

Deciding Where to Buy a House in Florida

For some of you, this could be the most difficult part! There are many beautiful regions in Florida that would be wonderful to live. Everyone has different needs and lifestyles, so we recommend that you not just research different parts of Florida, but that you actually go and visit. You may prefer to be in Central Florida near Disney World, or maybe you want to live along the gulf coast near the famous beaches of Sarasota or Venice, Florida!

Another consideration is whether or not to buy inside a development or outside. There are some pretty incredible communities around Florida that feel more like a resort than a neighborhood! A lot of people moving to Florida desire to live in these types of communities because it feels like you are living on vacation – with giant swimming pools, waterslides, sports courts, golf courses, fire pits, dog parks, spas, walking & biking trails, and so much more!

Be Mindful of HOA and CDD Fees in Florida Developments!

The thing to keep in mind if you want to live in some of these resort-style developments are the additional fees that will come with your home. Not only HOA fees, but CDD fees can really add onto your month, quarterly, or yearly bills. So be sure that you gather all the details about these types of fees before you buy, and make sure that you are not exceeding your budget.

Get a Helpful Florida Real Estate Agent that You Can Trust

With a budget in mind, it will be time for you to start looking for a real estate agent. Your real estate agent will be your advocate and advisor throughout the process of buying your home in Florida. They can give you expert input about the houses you look at and help you navigate the offer, negotiating, and closing processes.

What’s most important is that you work with a realtor who is knowledgeable about the local market and will be helpful and trustworthy. You don’t want a realtor who gives you that feeling that they don’t care about you, or that they are just trying to “sell you” on a home!  You also don’t want a realtor that just talks about themselves all the time — trust us, those are the ones to avoid!

You want a realtor who listens to you and actually cares about what you want! You need a realtor to have your back and watch out for your best interests and helps you not only find your dream home in Florida, but also to help make the process as smooth as possible. This is especially important if you are an out-of-state buyer or even just new to the area!

As a licensed real estate agent here in Florida, I am happy to help!

My goal here with That Florida Life is to help people live the Florida life of their dreams. Whether they are coming here on vacation, or if they already live in Florida and are looking for fun things to do, etc. Real estate is just a natural extension because I know many people who want to buy vacation homes here or want to move here from out of state.

My goal is to do what I can to spread happiness. So if I can help you with your real estate needs, I’m happy to do whatever I can to help you out! Feel free to send me a message if you want to talk more! 

You’ll Need Mortgage Pre-Approval (or Proof of Funds if Paying in Cash)

Although your initial budget calculations should have given you a rough idea of how much house you can afford, you don’t want to go into a mortgage with only a rough idea. You want to be certain that you’re not buying too much house and getting yourself stuck in a hard financial position. Getting pre-approved for a loan can not only make your mortgage process go faster, it can also help you set a firmer budget.

Also, due to the demand for Florida properties many sellers will require pre-approval or proof of funds at the time you put in an offer. So it’s always good to have it ready just in case. 

Reach out to a mortgage broker or a lender and ask them to start the pre-approval process. You may need to provide them with your tax returns and pay stubs for the last few years, as well as bank statements and a credit score. Let them know how much you want to spend on your house, and they’ll either grant you a pre-approval for that amount or counter with a lower amount.

Also, if you are planning to pay for your house in cash then you will need to get proof of funds. This could just be something as simple as a screenshot of a bank account, 401K, etc. Basically, you need to have a way to show that you are good for the cash you are offering to pay. Most of the time, you will need to have this ready when you put an offer in on a house to confirm a cash deal.

Look for Homes in Your Target Area

After you get your pre-approval in hand, you’ll be ready to start more seriously shopping for homes. The easiest way to do this (especially if you are out-of-state) is to search for homes online. When you’re exploring homes online you may be interested in, be sure save the listings / photos and take plenty of notes. The houses will start to run together after a bit, and you want to make sure you remember which house had the gorgeous fireplace and which had the tiny bedroom closets.

Try to keep a level head while viewing these homes, and don’t let yourself get swayed one way or another by small fixes like paint colors or finishes.

Viewing Homes in Person

If you are in town, then definitely have your real estate agent book you a showing so you can check out the homes in person. If you are NOT in town, then don’t worry! A great real estate agent can go out there and check out a home for you!

In fact, I do this all the time for out-of-state buyers. They’ll have me go over and check out a home, and while I’m there I will call them and give a video tour or I’ll record a detailed video of everything and send over to them so they can watch.

Make a Short List of Your Favorites

Once you’ve toured all your potential homes, you’ll need to sit down and make your shortlist of homes. These will be the houses you’re most interested in buying and which are still available. You should aim to have two or three houses on this list to make your decision process simpler.

Sit down and pull out all your notes and pictures that you took during the home tours. Talk over the pros and cons of each home and what you could do to make each work better for you. Consider location, school district, price, and other factors that you can’t change as easily as some stained carpet or ugly wallpaper.

Be Prepared to Make an Offer

When you’ve finally decided which house will be your Florida dream home, you’ll be ready to make an offer. Step one of this process should be sitting down and having a serious conversation with your realtor. You’ll likely want to offer somewhat less than the list price, but you don’t want to go too low or you’ll risk offending the homeowner.

Decide on an offer that seems reasonable to you and your realtor and have your realtor submit the paperwork. The seller will either accept your offer, decline it, or most likely, provide a counter-offer. These negotiations may go back and forth for a bit before you settle on a price that works for you both.

Florida Real Estate Can Be Hot!

Every year people flock to Florida, especially during the winter months. Many of these people are vacationers, but many of them are retirees or “snowbirds” who are escaping the cold up north. So while Florida real estate can be hot any time of the year, the winter months can be very busy for real estate. This means that if you are really interested in a property, then you need to be prepared to make an offer because you just might lose out to another person!

We don’t say this to put on the pressure, just being completely transparent about how it often goes down here. It’s important that you are prepared and ready to pull the trigger if you find a home you love and suits your needs and budget.

Send Over Earnest Money & Schedule Inspections

Once you get an accepted offer, you will need to send over earnest money within 3 days to secure everything. If you are not in Florida, then you can send this money via wire transfer. Then you’ll want to immediately get your inspections scheduled.

While inspections aren’t technically required, we highly recommend to anyone buying a home to get it inspected by a professional to make sure there aren’t any problems lurking beneath the surface. You want to hire an inspector you trust will give you a complete, detailed picture of the home you are buying. For all of my clients, I can provide a list and help schedule some great third-party inspectors (not affiliated with myself) who I know are extremely thorough and experienced. I trust them and they do a great job for my clients.

After the inspection report comes back, there will likely be a few additional rounds of negotiations with you and the seller over who will fix what. You may be able to get them to drop the price further if there are serious problems with the house, or you may be able to contractually obligate them to handle those repairs. However, the seller is not required to make repairs in most cases. So you might have to do some of the repairs yourself, so decide what you’re most willing to tackle.

Typically the inspection period lasts for anywhere from 7 – 15 days in Florida (this can be negotiated upon as well). This is seen as the time when you can really dig in and make sure you are happy with the home you are buying. If during the inspection period you decide you do not want the house, then in Florida you can back out of the deal for any reason and be able to get your earnest money back.

Can I Attend the Inspection? What If I Don’t Live in Florida?

If you are in town then it is possible for you to attend the home inspection too, as long as you don’t get in the way of the inspector doing their job. But if you are NOT in town, then no problem! The inspector will be sure to send you a detailed report with photos.

However, for my own out-of-state clients, I will typically go to the home inspection for them. I will take photos, video, talk with the inspector and even give you a call to chat about things if necessary. 

Secure Your Mortgage (if needed)

After inspection negotiations have concluded, you’ll be ready to start the mortgage application process. This is a lengthy process that involves deep dives into your financial past and quite a bit of paperwork. Having your pre-approval can help to smooth this process since some of that work will already have been done.

In general, you want to plan on the mortgage process taking somewhere between forty-five and sixty days. An underwriter will need to review and approve your loan, and you may need to meet with your lender or broker several times. You can also spend this time packing and preparing your own house for sale, if you have one.

Get Home Insurance

The other thing you can focus on while your mortgage is in the process is getting a homeowner’s insurance policy. Even if this policy wasn’t mandated by your lender, you would still want to have one in place. Your home insurance policy will help you pay for repairs in the event of a disaster, such as a fire or a tornado.

Home insurance policies have different types of coverage, and which you get will depend largely on where you live. In Florida, for instance, hurricane insurance will be very important. You may also want to consider setting up an escrow account for both your home insurance and your property taxes.

Don’t Forget About Flood Insurance!

Keep in mind that there are many areas in Florida that may require flood insurance with your home. This is especially true if you are buying a home in Florida near the ocean or other waterways. However, you might also want to consider buying additional flood insurance for your home in Florida even if it isn’t required. That’s because there is a lot of rain in Florida and other major storms, such as hurricanes, that can cause extensive damage and flooding. Oftentimes your regular insurance policy won’t specifically cover flooding — even if it is associated with one of these storms!

So for that reason, some homeowners in Florida choose to buy supplemental flood insurance even if they don’t have to.

Closing on Your Home in Florida!

The final step in your home buying process will be attending your actual closing! This is when you’ll sign all the paperwork that will bind you to your mortgage and legally transfer ownership of your home to you. After the closing, all that’s left is for you to move into your new Florida dream home!

Remote Closings – if you do not live in Florida, then it’s possible for you to do a “remote closing” where everything is done online and electronically. Just be sure to work with your realtor on this ahead of time so they can let all the parties know.

When is the Best Time to Buy a House in Florida?

In many parts of the country, there is a specific time of year when it might be best (or not so good) to sell or buy a home. In Florida, the real estate market is thriving year-round. In particular, during the winter season real estate can become quite hot in Florida due to all the “snowbirds” coming down and looking for future retirement or second homes.

So while many other parts of the country might see a slow down in real estate during the winter months, winter is pretty competitive for real estate in Florida!

In addition, in late 2020 and so far in 2021 we have seen a real BOOM in the housing market in Florida. To be totally honest, it’s pretty nuts down here! Competition is fierce and inventory is limited (as of the date of this post). So buyers who are looking for a house in Florida right now need to be prepared. If you see something you like, you really have no time to delay. You have to jump on it and be ready with your pre-approvals, etc.

That’s where I can really help you out! As a licensed real estate agent, my job is to help get you the best deal and the best chances of getting a deal! Since I’m in it every day, I can advise you on what a good offer is that is fair and helps you stand out. I can also help work with the listing agent to see what we can do to make the deal work for everyone.

Feel free to contact me and I’d be happy to help you however I can!

Learn More About Buying a House in Florida

Buying a house in Florida can seem like an overwhelming process, but it’s also very exciting. Be sure you establish a solid budget early on, and get pre-approval to make your mortgage process a little easier. Know your budget when shopping for houses, listen to your realtor’s advice, and be prepared to negotiate during the offer and inspection processes.

The post Buying a House in Florida: What to Know (Especially If You Don’t Live Here) appeared first on That Florida Life.