All list of things to keep in mind before buying in Miami? (real estate, apartments)

[tora.v]

What are the key things to look for or to avoid when buying the Miami area? Are there obvious things that the locals know? I was reading in older threads that homes built in the 20's often had foundation problems due to sand used as filler.... what about hurricane standards, and shutters? When we are looking at homes that are next to water (with boat launches) the first thing I think of is flooding. Any advice for the newcomer?

[hurricaneMan1992]

One thing I find realtors don't tell me much about is what kind of insurance discounts you can expect from one house versus another. That is a HUGE deal down here, potentially saving you thousands each year, but it doesn't seem to affect resale value much. (Also, I think many realtors do not want to get in legal trouble by giving professional insurance advice.) So, it may be good to get in touch with an insurance agent who does Citizens from the outset, so you can get quotes fast when you have to choose which property to put in an offer. Regarding being on the water with boat launches, the condition of the sea wall also matters, also how long it takes to get out to the ocean (and if you even can...), and whether you have to wait for any drawbridges.

[bale002]

1) Make sure of the neighborhood street by street at different times of the day, different days of the week; if in a condo area, building by building, examine the association financial statements, check on the MLS if the building (or neighborhood) has a lot of lis pendens and foreclosures; if a SFH, make sure you find a reputable inspection company.


2) Do a comparables analysis (both ask the realtor and do your own research using the official Miami-Dade property search site). Focus on price per square foot, but there are other factors like upgrades, view, etc. Decide if you want the best deal possible or are willing to pay a premium to discourage competition from other potential buyers, especially cash buyers.


3) Insurance rates. Citizens is not the only game in town: there are good independent agents who work with "A-rated" insurance companies with geographically diversified risk, but there are also Florida-only insurance companies who acquire policies from Citizens whose ability to pay in case of a multi-county or statewide disaster is dubious. In any case, insurance is an expense that can make or break a deal. As a rough guide, figure conservatively 2% of purchase price for annual insurance fee, then up around 6%-10% per year.

I believe that the strictest codes are from 2005 onwards, for which you can obtain the largest discounts. It is possible to bring an older house up to code, but usually not 100%.


4) Home owners association or condo fees. Know exactly what they cover, whether they cover building (roof and outside walls, common areas) insurance in the case of a condo or townhouse, any utilities such as cable, internet, and water. Sometimes HOA or condo fees can also be a deal-breaker.


5) Property taxes. Learn about the homestead exemption, how it works, how it protects and doesn't protect you again rises in property taxes, how and when you qualify, and the millage rates on your local property taxes. All this is available online, property by property on the official Miami-Dade property search site, do your own research, do not ask the real estate agent. Or ask the real estate to test how much he/she really knows or is willing to say.

It is possible that in the year of purchase you will pay a portion of property taxes without the homestead exemption even if you intend to homestead, or, on the contrary, you could pay a portion at the homesteaded figure in the year of purchase even if you do not intend to homestead. In any case, as a rough guide, figure conservatively around 2% of purchase price per year, then up around 3% per year if you homestead. Also, in any case, the homestead exemption is worth around $1,000 per year.

Overall, unlike insurance and HOA fees, I do not believe that property taxes are a potential deal-breaker, they are about the same in many places in the northeast US at least.

Good Luck!

[m_pala]

Thank you for all these informations.

[tora.v]

Thanks for your advice - we owned a home once (built in the 40's) and couldn't get insurance on it because ONE of the covered lines to the power box was starting to peel back and the agents said he wouldn't insure until we rewired the ENTIRE house ( he said if one is peeling on the outside then they are probably peeling on the inside). We listed and sold it immediately. I've been hesitant to buy anything old due to lead paint, wiring, and old pipes. Also I've seen one too many "flip this house" episodes with crappy renos - to buy a renovated home. What are the hurricane issues and what should you look for when buying a home?

[Cubanchic]

Check the date of last roof, citzen will make you redo if 15 or 20 years old.

Anything redo!!!!!! May sure it was done right! We just learned we WILL have to redo two bathrooms because they used white PVC for hot water lines.

Get yourselves a really awesome inspector pay extra, he will save you tons in the end. Seriously if you have to pay 600 to 700 hundred it is WELL worth it down here. May sure they go up the crawl space, may sure you visit the property at the morning and especially at 3 pm, when sewer lines are most pluged up. go when it is a monsoon!!! Check for leaks then.

Right at this time you will notice most problems because of the heat and the weather.

[tora.v]

May sure it was done right! We just learned we WILL have to redo two
bathrooms because they used white PVC for hot water lines.

90's plumbing? Thanks - I forgot about that. I guess there is problems in CA with Chinese Drywall.

Also - why are there so few homes with gas stoves?

[Cubanchic]

Gas stoves need a hood and vent, in the heat of the day a gas stove without a hood without a outside vent would be really hot in the kitchen.

They would have to disclose Chinese drywall, and white PVC for hot water is not code, but that is a behind the wall issue. So we didn't find that out untill we bought in a plumber to replace a sick and to find out why the sewer gas smell in the afternoon. No pee trap in both tubs!

I also might add if the house is on septic make sure to look up original plans of the house when it was built and locate to tank! Bring a plumber to the inspection because like in my other house the addition was built right on top of it!

[Chelito23]

I would say check for flooding. Ask neighbors about how bad it gets annually and under less frequent, bad storms. Look out for neighbors who have filled in the swale, that means yours will be have to deal with twice the amount of water and runoff.

In general, check to see if there are ALF (assisted living facilities) nearby, they are residential homes for mentally challenged people). A lot of times, it seems like their residents are just roaming around the streets aimlessly and that creates a challanging envirmonment when you have to sell and people wonder what's going on.

Find out the codes for renting apartments or garages in the area, are what the neighbors doing legal? How many people can they cram in their "efficiency"? Can you rent one out? Grandfathered Claus in?

Have a termite inspection performed on older homes. Have a thorough inspection on plumbing, electric work and other appliances done as well.

Good luck and happy hunting.

[tallrick]

You would be foolish to buy now during the bubble. Better to wait a bit more for the next crash, it should be on schedule 7 years from 2006-7.