Tips for First Time Florida Home Buyers

Posted August 22, 2008

Get to know a Realtor you feel you can trust.  A Professional Realtor, experienced in both new construction and resale homes, can act as your Buyers Agent and advise you on:

• the merits of buying a new versus an existing home
• various builder's strengths and weaknesses
• how certain home upgrades affect future home value
• the most economical way to finance your home

Your Buyers Agent will be happy to guide you through the many home buying steps from offer to closing without undue stress.  Its true .... As an experienced Realtor, I can and will save you time, money and grief.

Learn about the market before you shop for a home. Before you can purchase a home you need to feel comfortable about where you are buying and the price range you are dealing with. You can get an idea of the real estate market by researching properties for sale on the local MLS on or Realtor.com. But the best way to learn about the market is to enlist the assistance of a licensed Florida Realtor ®.

Know how much to offer. Knowing how much to offer is one of the most difficult parts of buying a home. Your Buyers Agent can provide you with a list of recently sold properties of comparable size, location and amenities so you can compare selling prices. Then you'll know whether this property is realistically priced.

If a property has been on the market a while, the owner may accept a below-market offer.  But, if the property is very desirable, the seller may just reject your offer wasting everyone's time. Your Buyers Agent Realtor can give you good advice on the right price to offer.

Some parts of Florida are more in demand than others. Property prices in the most in-demand areas continued to go up until just recently. Although they may have come down a bit recently, properties in very desirable areas have not gone down by much.

Officially cancel your inactive credit cards. If you have an credit card you're not using with a $5,000 limit, even though you owe nothing on it, some mortgage lenders consider that a potential future debt. Too many inactive credit cards with significant credit limits could keep you from obtaining a mortgage loan. Don't just cut up your extra cards; officially cLL and cancel them.

If you'll need a mortgage, shop for a lender before you shop for a home. Get pre-qualified (and preferably pre-approved). Pre-approval is powerful leverage during price negotiation.

If you need a mortgage, don't assume your credit is spotless. Ask your preferred lender to pull your credit report. It may contain errors or old unpaid balances that need to be addressed before you formally apply for a loan.

Between pre-qualification and closing, consult your mortgage lender before any major purchases. Credit purchases affect your qualification for a mortgage, even after you've been approved; right up to the day of closing on your home. For example, if you're going to buy furniture for your new home on credit, wait until after closing to avoid possibly impairing your mortgage approval

Be careful from whom you take advice. Don't count on Uncle Bob, a Realtor 20 years ago. Home builder's salesmen and Realtors representing the seller won't necessarily tell you all you need to know. Your Buyer's Agent, on the other hand, is required by law to tell you everything he or she knows that could affect the value of the home.

Seller's and Realtors representing sellers of resale homes don't always tell the whole truth about the condition of the property. After you've gotten a purchase contract agreed to, get a professional home inspection so the Seller, not you, pays to correct any problems.

Buy a home you can really afford. There are tax advantages to owning a home, but, there are also on-going expenses (maintenance costs, decorating, lawn care, trash pickup, etc.) that you may forget in the excitement. "Buy a bit less home, rather than a bit more home than you think you can afford," is good advice.

On a new construction home, decide which features you want and stick with it. Some new home sales people will try to sell you upgrades which add little, if any, value to your home when you evenutally sell it. Your Buyer's Agent Realtor can help you know which upgrades do and don't add resale value.

For more information on buying a Florida home, we invite you to review other parts of this Real Estate of Florida website. You'll find it packed with useful information.