Even if you've bought a home before in a different state, there are some things you should know about buying a home in Florida before you start shopping. Florida is a unique state, and buying a home there can be a different experience from buying one anywhere else. Take a look at some of the most important things that you should know about buying a home in Florida.
You May Need Additional Insurance
Homeowner's insurance is part of the cost of home ownership, and it's important to include the cost of homeowner's insurance into your budget when deciding how much home you can afford. But you may need more than just homeowner's insurance. Your home insurance policy won't cover flood damage, and in hurricane-prone Florida, flood insurance can be a real lifesaver.
In fact, your lender may require you to carry flood insurance, depending on where your home is located. Your lender doesn't want to take the risk that you might default on your loan if your home is badly damaged in a flood. So in flood-prone areas, many lenders make flood insurance an additional requirement. Make sure to price flood insurance and include it in your budget calculations.
You Shouldn't Underestimate the Closing Costs
Buying a home in Florida can seem like a steal when the mortgage rates drop. But you still have to be prepared for the closing costs, which may be higher than you think. Florida has the 17th highest closing costs in the nation – you can expect to pay about $2,183 on a $200,000 loan.
You may be able to reduce the fees by negotiating with the lender. Also, if your seller is motivated, they may be willing to drop the price of the home by enough to cover the fees or even pay some of the closing costs themselves. A good real estate agent can help you negotiate a good deal on your closing costs. You can talk with keller williams jupiter for more information.
You May be Eligible for a Homestead Exemption
Are you planning to make your Florida home your primary residence? If so, you'll want to know about the state's homestead laws, which are some of the most protective in the country.
A homestead exemption can save you hundreds of dollars in property taxes. It can get you a $25,000 deduction from your property's assessed value, plus an additional $25,000 deduction if your home is worth at least $75,000. The exemption also guarantees that your home's assessed value cannot increase more than 3% per year or the percent change in the Consumer Price Index, which can save you a lot of money in the long run. You may even be able to transfer this exemption if you're moving to a new Florida home.
When buying a home in Florida, it's important to make sure that you understand what makes Florida different from other states. Working with an experienced local real estate agent is the best way to make sure you get a great deal on a home that you'll enjoy for years to come.