Most Frequently Asked Questions (FAQ) about Florida Real Estate
Many people have questions about Real Estate but don’t know whom to ask. If you are one of these people, I am here for you. Remember, I am not an Attorney or Accountant, so limit your questions to Real Estate. If I don’t know the answers to your questions, I will certainly use my resources to find the answers.
How much of a home can I afford?
You can afford a house that costs as much as the largest monthly payment you qualify for.
A quick way to estimate the size of the mortgage you qualify for, is to calculate 28% of your monthly income (before taxes and deductions). This should be just over 1/4 of your gross income.
If you have debts you must add it into the ratio. It cannot exceed 36% of your gross income. Obviously, if you have more debt, you would be qualified for less.
Who pays the Real Estate Commission?
In most cases the real estate commission is paid by the seller of the home. My resources, as well as Prudential Florida WCI are at your disposal, and it will cost you nothing.
Do I need an attorney?
In the State of Florida you do not need an attorney to purchase and close a home. You may have one if you choose to, but a title company can close the contract and do a very satisfactory job.
What does Homestead mean?
When you are a resident of Florida for more than 6 months out of a year, and claim your Florida home as your primary residence, you can get a deduction on your real estate taxes equal to about $500.00.
What happens when there are multiple offers on a property?
In today’s market, which is very active, there might be several offers on a wonderful property. If that is the case, you must make your last and best offer, and so will the other parties involved. Neither party will know the others bid. Under consideration will be price, cash vs mortgage, and closing dates. At that point the Seller will make a decision on the contract that is best suited for him.