Don't Forget to Ask Sellers About These Items When Purchasing a Florida Home

Considering the purchase of a new home in Florida?  If you are, plan on doing a lot of research and asking a lot of questions before you sign the contract.  Otherwise you'll be in for a nasty surprise after you take ownership - even if you are buying the home for 50% below the market.

Florida property taxes are still sky high even with depressed home values.  Ask the county tax assessor what the property taxes will be on the home that you are considering.  Property tax amounts on bills the seller shows you might not be the tax amounts that you are going to pay.  Long time homeowners in Florida enjoy what is known as a "Save Our Homes" exemption that could be freezing the assessed home value far below what you are offering for the home.  A year after buying such a home you could be facing outrageous property taxes.

Don't confuse the Florida "Save Our Homes" exemption with a homestead exemption.  Homestead exemptions in Florida exempt the home from the first $25,000 of assessed value if that home is used as a primary residence.  The reduction in Florida property taxes from a homestead exemption is nothing compared to the property tax reductions the "Save Our Homes" exemption can produce.

Finally, when you are talking to the county property tax appraiser, find out how much the "non-advalorem" taxes are on the home.  These property taxes are assessed on your home regardless of the value of the home.  And in many Florida Counties they can be very substantial.  Those taxes have to be paid even if the tax value of your home is zero.

The second biggest expense on a Florida home after you buy it is homeowners insurance which can be extremely expensive due to hurricanes.  Don't rely on home insurance bills shown to you buy the seller of the home.  Instead get multiple quotes from several different agents.  If you are trying to break a tie among several homes you are considering, choose the home that was built in the year 1995 or later.  Homes built after 1994 were constructed under a tougher building code and you'll have much better luck finding a home insurance policy to cover that home.

Find out whether the Florida home you are considering is located in a flood zone.  Homeowners insurance in Florida does not cover flood losses from rising waters.  A separate policy is needed.  If the home you are buying is in a flood zone your bank will require the extra coverage and that will add to your insurance costs.  Even if the home is not located in a flood zone, find out where the closest canals and rivers are - Florida has significant rain and you still could have rising water entering your home.

If you are considering a community with a homeowners association find out whether there are any special assessments being considered by the association.  Many homeowners associations in Florida had unreimbursed damages from previous hurricanes and are still trying to recover money from their insurance policies.  All homeowners those neighborhoods are being asked to pay thousands of dollars in special assessments above and beyond the normal dues.  Ask for a current set of financial statements from the association and find out specifically how many homeowners in the neighborhood are behind on their dues.  With the rise in foreclosures, many homes are being abandoned without the homeowner association dues or special assessments being paid.  Those associations will be looking to the new influx of homeowners to make up the difference.  Pick the wrong neighborhood and you'll pay far more than the usual association dues.

Homes in Florida with a pool can be very expensive to own.  Investigate the age of the swimming pool and find out the last time it was resurfaced.  Normal pool chemicals and cleaning can run between $50 and $150 per month.

If the home has a sprinkler system to water the lawn find out whether the water comes from wells or if you will be using city water to irrigate the lawn.  City water is very costly and you'll consume a lot of it in order to keep your lawn green during a Florida drought.  Expect to spend $25 in electric to water a lawn using wells and $100 a month to water a lawn if you have to use city water.  Finally, if your lawn is going to be watered using well water find out how deep the well is.  Shallow wells draw up water that has too much iron in it.  This kind of water can stain sidewalks and houses with a rust color.  It is not unusual for homeowners in Florida to pay an outside service $50-$100 a month to have chemicals added to the sprinkler system so that it doesn't cause stains.

Many Florida homes are also candidates for hidden mold damage that comes from leaky walls and roofs.  Once the cause of mold in a Florida house is eliminated, replacing drywall, studs, baseboards, and cabinets is the only way to get rid of the mold damage.

If you are buying a home on a golf course, find out the financial condition of the course.  Florida is overloaded with golf courses very few of them are breaking even.  If the golf course next to your home fails you might wake up one morning to find your golf course view replaced by condominiums.

Do your research on all of these issues and hire a home inspector with experience locating hidden mold damage.  Don't select an inspector recommended by the seller.  Doing your due diligence is the only way to be sure that the dream home you buy in Florida doesn't turn out to be a nightmare.