First-Time Homebuying in Florida: Mistakes to Watch Out For
Acquiring your initial residence is undoubtedly an exhilarating experience for you. Florida, with its alluring offerings, can be an ideal location to establish your permanent residency.
But don’t let your excitement make you overlook important factors. You have to be careful when you are up to make this huge decision.
To ensure that you won’t have to regret it later, here we round up some mistakes that first-time homebuyers in Florida tend to do. Just go through them so that you can be careful and prepared.
The Home Price In Florida
At the very beginning, let’s check out the market situation of Florida’s real estate so that you can decide your budget easily.
According to Redfin, the current average home price in Florida is $449,999. And the home price varies in different counties. The median home price in one of the wealthiest counties, Palm Beach County, is $500K as of January 2023.
Based on New Home Source data, Palm Beach Gardens is one of the most expensive places to live in palm beach county. The average home price here is $1,053,125. And if you want to live in an high-end gated community like Bay Hill Estates, you have to spend on average $2,181,100.
Anyway, lower-budget options are also available in other cities. Cape Coral, Dunedin, Fort Walton Beach, Lakeland, Vero Beach, etc are the places where you can buy homes at affordable prices.
The Mistakes A New Home Buyer Should Look Out
You have to be careful before taking your step to buy your first home. Below we have arranged some common mistakes that a first-time home buyer usually makes.
Taking Decisions Without Proper Research
Investing in real estate involves a lot of money. One single mistake can create a great loss. So, do proper research and analysis. Focus on how much you can spend. After finding a few suitable homes, look at the property tax, neighborhood situation, local amenities, market trends, and so on.
Depending on your situation, you should choose an adjustable-rate mortgage or fixed-rate mortgage. The current mortgage rates in Florida are like the following-
- 5.973% for a 30-year fixed
- 5.146% for a 15-year fixed
- 6.610% for a 5-year adjustable-rate mortgage
Think carefully before signing your contract as a wrong decision can impact your finance for many years. Unfortunately, many homebuyers tend to get the wrong mortgage.
Don’t let your emotion overpower your rational consideration. Many buyers do this mistake while investing. For your future financial security, you should not cross your budget.
While doing the primary research, you must set up your budget. You know, buying a property involves additional costs. As a result, if you decide to buy a home beyond your budget, the additional cost will be a big burden for you.
No Long-Term Plan
Buying a home needs a long-term plan. You should not buy a house in Florida just for enjoying the mesmerizing view of the rising market value.
Think about communication, public transport, school, hospital, or any other important institution when picking up a location. You can talk with your real estate agent and get their help to find the perfect location within your budget.
Not Giving Attention to Home Owner Association
As first-time buyers, many people don’t know the power of Home Owner Associations (HOA) in Florida. To co-exist peacefully you have to maintain their rules.
So, look at the rules and regulations of your local HOA before moving into the area. If there is an existing rule that may create problems in your regular life, you should know about it beforehand. Otherwise, it will be too late after already make your purchase.
Don’t Read The Contract Properly
Real estate contracts tend to be complex. Some terms are only understandable by the professional and it’s almost impossible for a regular person to understand them.
However, a contract paper is such a thing you should not look over even a single sentence. Therefore, you should get a help of an experienced person while going through the terms and conditions. In this way, you can avoid future problems.
Purchasing a home for the first time might make you confused enough that you make a mistake easily. However, just by watching out for the above-mentioned points, you can be on the safe side.
The real estate market in Florida is quite secure. Safe investment and a peaceful environment – if you want both, Florida is simply the right place for you.
If you are lucky enough to have your dream home in this state, take your first step without any hesitation!