Every state has unique things to look at when purchasing a home. Florida is no different, except for the thing it’s best known for; hurricanes. Gone are the days when insurance companies will pay for almost anything that happens, if those days ever existed in reality. Here are 5 things prospective home owners should be asking about when deciding on a home in Florida.
1. Get this one out of the way first; how has an existing home handled hurricanes, and if it’s a new home, what’s the track record for the home builder in constructing homes that can withstand hurricanes. There are records that are supposed to be kept on this sort of thing, and any home builder worth its weight will proudly tell you their success ratio. Home owners are supposed to disclose this as well, but if they don’t, a good inspector will be able to tell you a few things.
2. The next thing you want to know about is flooding. This is the second worst problem homes in many Florida communities have, and once again you’re supposed to be told this by current home owners.
3. Past home values. The truth is that over the last couple of years, home values have dropped drastically, leaving a lot of great property deals at low, affordable prices. These days, a home that was formally worth a million dollars might be able to be purchased for under $200,000 in some communities; that’s practically highway robbery, but in your favor.
4. The reason why you need to know that is because real estate rarely falls and stays low forever. So, that “great” deal you got when buying the house might not look as good 5 years from now if home values start increasing dramatically, and suddenly you’re paying property taxes based on property worth a million that you bought for $200,000. It might look attractive if you’re looking to sell, but if not you’re going to have to deal with high assessments of your property, and your home might end up being out of your price range again.
5. Verify which insurance companies will offer insurance on the homes in the area you’re looking to buy in. Last year State Farm dropped 125,000 home owners whom they determined lived in dangerous areas where natural disasters would cost them a lot of money. If you can get quality insurance coverage for your potential new home, that might signal that it will be a great place to live long term.
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Mitch writes on real estate, finance, and many other things.