Buying property in Florida is different from buying in other states.  Especially for the Midwest or I-75 corridor.  I am going to talk about 4 key differences you need to be prepared for.

Who is representing you? 

In many states it is assumed that if you are working with a Real Estate Agent, they are looking out for your best interest.  In Florida, that may not be true…

We have 2 types of representation or what we call Agency.  All Agents have certain responsibilities to a customer.  The assumed Agency in Florida is called a Transaction Broker.  Simply put, this agent is representing the transaction and not the buyer or seller.  The other type of agency is a Single Agent and they represent the Buyer or Seller but a Single Agent can not represent both in a transaction.

Here are the key items that a Transaction Broker is responsible for in the relationship with their customer: Deal honestly and fairly, Account for all funds, Use skill, care, and diligence in the transaction, Disclose all known facts that materially affect the value and are not readily observable, present all offers and counters in a timely manner and exercise limited confidentiality unless waived in writing.

Here are the key differences in Single Agent Broker.  A Single Agent must abide by all the same things as a Transaction Agent but additionally they must have loyalty, Confidentiality, Obedience and Full Disclosure to their client.  Simply put, you are working solely for your client and looking out for only their best interest.  A Single Agent can work with either a buyer or a seller but it must be disclosed to all parties because again, in Florida it is assumed you are a Transaction broker.

So discuss what kind of relationship you have with your Agent before you tell them things that may affect the sale such as a divorce, loss of job, price you are willing to take, amount you can finance or anything that you do not want them to repeat to another person.  And if you are working with an Single Agent for goodness sakes… don’t call the other agent listed on a For Sale sign!

Escrow Amounts

When you make an offer on a property, you must put money down as a token of intent that is kept in escrow by Broker or Third Party.  In many states a small deposit is token of intent to buy but be prepared in Florida.  Depending on the price of the home, many buyers will not accept an offer without a substantial deposit.  If you are paying cash, they could request half down.  If you are financing, they could request the full amount of your down payment from 3.5% or 20%.  Sellers in Florida want to know you are serious about their home or they will move on to the next buyer.  Again, it depends on the area and demand for the home you are purchasing but many times buyers are shocked by the demand for down payment in escrow.

Day of Closing

On the day of closing, the seller must be out of the home and home must be swept clean and provide keys to buyer.  If the seller needs to stay longer, then they must discuss that with the buyer.  This is a big surprise for many out-of-town buyers because many states give the seller several months to get out.  Not in Florida… day of closing you must be out and most Florida contracts state that home must be clean.

Insurance

ok… this really could be a blog in itself.  I did a recent blog on Flood Insurance but Homeowners insurance in Florida is very different than most states.  Your insurance will be between $700 and Thousands… usually the average insurance in Florida is about $1500 per year plus Flood if you need it.  There are many factors that affect your rate and you need to discuss this with your insurance agent.  Your Real Estate Agent should be able to guide you in the right direction but most agents have relationships with insurance agents and work closely together.

I hope this blog is helpful.  If you are relocating, work with an agent that is specializes in relocation.  They should be able to guide you through the changes.