Below are 10 tips for International homebuyers who are considering a vacation home or investment in Florida real estate.
1. Use the Services of an Experienced Realtor
One of the biggest differences between the US real estate market and many other foreign nations is buyer agency. Hiring a Realtor in the US for representation does not typically cost the home buyer anything. Commissions are paid by the seller. Buyers can have an agent help them with all aspects of a real estate purchase at no charge. It is essential that foreign homebuyers align themselves with a Realtor possessing experience and expert market knowledge. An experienced agent will help buyers find the most suitable home and negotiate the best price and terms.
2. Consider the Services of a Real Estate Attorney
There are many US Tax laws that can have serious implications for foreign buyers. Hiring an attorney that is experienced in US Tax laws can lead to significant tax savings when it comes time to sell the property. A Real estate attorney can also help avoid unnecessary tax liabilities when buying real estate.
3. Consider setting up a Qualified Domestic Trust
United States real estate held at death by an alien of the United States can be taxed at very high rates. A properly setup Trust can help to defer the tax until the assets are taken out of the Trust.
4. Consider the Cost of Hurricane Shutters When Buying a Home in Florida
Hurricane Shutters are not a small investment. Most small homes are looking at a spending a minimum of $3,500 to protect their homes. If you are interested in buying a larger home and they have installed quality hurricane protection you should keep in mind how much money the sellers invested when negotiating a price.
5. Remember Sprinkler Systems
I am sure you are aware that it can get very hot in Florida. Homes need built in sprinkler systems to maintain the beauty of the landscaping. However, there are many homes that do not have sprinkler systems and there are those that do not have functioning sprinkler systems. The cost of adding or repairing a sprinkler system is considerable.
6. Barrier Islands vs. the Mainland
There are many buyers that believe they want to live in a barrier island because they have heard about the beauty and the instant water access, but there are those that are unhappy with their choice. There are many benefits of living on the mainland. For example in Sarasota, there are luxury condos in Downtown Sarasota that are minutes away from beaches and entertainment. You can have waterfront views and a boat and avoid paying the high prices of living on a barrier island.
7. Maintenance Fees
Maintenance fees can be quite high depending on where you buy. You will also have taxes and homeowners insurance costs to consider and sometimes the maintenance fees will put home buyers over their yearly budget.
8. Family Neighborhoods
Sarasota has neighborhoods that tend to be quieter than others and we have those that are full of children and all the noise that comes with them. If you are hoping to buying a home where you will have peace and quiet let your Realtor know. A knowledgeable Sarasota Realtor will know which neighborhoods are best suited to your needs.
9. Homeowners Insurance Deductions
Talk to your Realtor about which aspects of a home will give you a deduction on your homeowners insurance because they could save you a lot of money in the long run.
10. Owning a Home with a Pool and/or Jacuzzi
The Florida Department of Health reports, "Deaths from drowning for children less than age five in Florida are more than double the national average and are higher than any other state in the nation. More than two-thirds of these deaths occurred in swimming pools."
Most people dream of having a home in Florida with a pool and it is a great dream, but everyone needs to consider pool safety. Again, ask your Realtor what you should be looking for and/or avoiding.
There are many more tips and laws that are important to International buyers. It is important for International home buyers to choose a Realtor that knows the Florida real estate market well.
John Allen is a Sarasota Florida real estate agent representing buyers and sellers of fine real estate. He specializes in Sarasota condominiums, waterfront properties and golf course homes. His award winning website is http://www.buysarasota.com.
Foreign Home Buyers - 10 Tips For Buying Florida Real Estate
