Florida Treasure Coast Real Estate Resource

Taking advantage of the moribund economy and housing market, Canadian Snowbirds have been snapping up U.S. real estate bargains, especially in the popular "Sunbelt" states. Canadian buyers are finding condos and townhomes priced as much as 50% less than a couple of years ago.

When it comes to buying a second or retirement home, Stuart, Florida is a prime destination for Canadians seeking warmer climates during the cold Canadian winter. With rock bottom pricing of homes in the Stuart area and an abundant selection of quality homes for sale, you have a perfect market to buy!

The transaction process for Canadian home buyers here is straightforward and not much different than that of a local home buyer. There is no risk to you until your offer is accepted and contingencies are met. You do need to submit an earnest deposit, which is usually 1-2% of the purchase price. if your contract is not accepted or canceled for a valid reason, your deposit is returned to you.

If you are buying in a community with a homeowners' association you will need to make sure it is adequately funded. When an HOA is underfunded (typically because too many units are in foreclosure and dues are not getting paid) it can mean higher payments for the building’s upkeep.

As a foreign owner, when you sell the property you will be subject to a 10% FIRPTA withholding (10% of the sale price) if you do not have a tax ID or social security number. Obtaining a tax ID or social security number in advance will avoid the withholding; otherwise it will be refunded if no tax is due when the tax return is filed.

For information about foreign ownership, investment and financial planning for Canadians in the US, check out  The Canadian Snowbird in America: Professional Tax and Financial Insights Into Temporary Lifestyles in the U.S.

Thinking of a second home in South Florida? We are experts at helping Canadian "Snowbirds" enjoy the warm weather, golf and other amenities that come from owning a vacation or second home in greater Stuart! Contact us for more info or to set up a private tour of homes and neighborhoods.

Selecting a Mortgage Lender

In today's brave new world of South Florida real estate, getting a home loan is arguably the most stressful component of your transaction. On the one hand, the "big box" national lenders have frequently proven to be unreliable in just about every step of the funding process. With their thin staffs, poor communication and underwriting rules that seem to change on a daily basis, a Florida home buyer cannot rely on a successful closing. On the other hand, working with a mortgage broker may compound these problems since you are adding a middleman to the equation.

Going With a Stuart Area Direct Lender

For me, the best option for my clients is to work with a local direct lender. Our preferred direct lender is Group One Mortgage. With offices thoughout the Treasure Coast, Group One offers skilled, personalized service coupled with the same programs offered by the national lenders.

Why a Florida Based Direct Lender Can Ensure a Successful Closing

1. Full Service - a direct lender processes your loan, underwrites your loan and funds your loan right in their office. This includes FHA loans, VA loans, 100% USDA loans, conventional and Jumbo loans.
2. Easy Access to Decision Makers - having the loan underwriter in their office allows your loan officer to communicate directly with the person responsible for approving and clearing your loan to close.
3. Direct Government Lender - a direct lender can provide in-house FHA, VA and USDA underwriting. As a direct Government lender Group One Mortgage has a DE (delegated endorsement)underwriter in their office. All FHA, VA and USDA loans stay in house and are not being brokered through middle men companies.

Please contact me with all your real estate needs. Or call Wayne Katz at Group One Mortgage (561) 791-0000 to get pre-approved for a mortgage today!

Eric Slifkin, Broker Associate
Keller Williams Realty
819 South Federal Highway
Stuart, FL 34994
(888) 288-1765

Common Closing Costs for Buyers

The myriad of fees associated with the buying or selling of a home are called closing costs.  Some fees are automatically assigned to either the buyer or the seller while other costs are either negotiable or dictated by local custom.  Your lender must provide a good faith estimate of all settlement costs prior to closing- the title company or other entity conducting the closing will tell you the required amount to bring to the closing.

Typical Buyer Closing Costs

• Down payment
• Loan origination fees
• Points, or loan discount fees you pay to receive a lower interest rate
• Appraisal fee
• Credit report
• Private mortgage insurance premium
• Insurance escrow for homeowners insurance, if being paid as part of the mortgage
• Property tax escrow, if being paid as part of the mortgage. 
  
  About escrows - lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.  Note: when financing more than 80% (LTV), escrowed property taxes and insurance are required, which will increase your monthly mortgage payment.
  
  
• Deed recording fees
• Title insurance policy premiums
• Survey
• Inspection fees-building inspection, termites, etc.
• Notary fees
• Prorations for your share of costs such as utility bills and property taxes
  
  A Note About prorations - At the closing, certain costs are often prorated (or distributed) between buyer and seller.  Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved.  Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance.
  
  The most common prorations are for property taxes.  This is because property taxes are typically paid at the end of the year for which they were assessed.   Thus, if a house is sold in June, the sellers will have lived in the house for half the year, but the bill for the taxes won't come due until the following year.  To make this situation more equitable, the taxes are prorated. In this example, the sellers will credit the buyers for half the taxes at closing.

Avoid Closing Delays

Your closing can be delayed by a number of issues including:

• clouded title
• a home not appraising for value
• encroachments or other survey issues
• a rapid change in interest rates
• an undisclosed credit or income issue
• inspection or repair problems
• or one of countless other unanticipated issues.

Don't buy your home without my assistance!  I understand what it takes to help you through your closing and can handle much of the work involved throughout the transaction with the least amount of stress to you.

When my client purchased this Palm City fixer upper it had not been touched in over ten years.  Once a modest retirement home with just two bedrooms, dated kitchen and overgrown landscaping, it was ready for a makeover.  The buyer, a cabinet maker by trade, invested about $20,000 and several months of sweat equity to create a comfortable three-bedroom home that a first time home buyer would find appealing.

Before

After

See the full set of "after" pics: http://tinyurl.com/abtnjx

Renovations included a new third bedroom, laundry room and remodeled bathrooms. A driveway and lawn was installed and the entire property landscaped.  It is presently rented until the market recovers.

As REO (bank owned) listings have come to dominate our MLS, I am amazed how these properties deteriorate once they have been acquired by the lender.  It is my understanding that after these listings are assigned to an REO broker, the listing agent is supposed to manage the property - make sure it is cleaned, repairs completed and the yard maintained.

This is often not the case. Recently a property I had previously listed was foreclosed and assigned to an REO broker located about a hundred miles away.  The former owner had kept the property in great condition.  It always showed well and if something needed attention he would fix it immediately, including an occasional leak in the aging roof.  So I was taken aback at how that home deteriorated in the weeks and months following foreclosure.  

About a month later I showed the property and discovered two leaks had developed in the roof causing sections of the ceiling to collapse in the laundry and master bedroom. Several more weeks passed and on another showing I saw that the damage had not been fixed (but it was duly noted on a maintenance checklist).  The yard had also become overgrown and of course the pool was green.  Fast forward three months and I am again showing the property.  Looks like the leaks were fixed but the damaged ceilings were left laying on the floor with gaping holes above.  During this time my $600,000 listing had been reduced several times and was now offered at $280,000.  We are going to make an offer but had a local agent been responsible for this listing I can't help but think that the property would have been better maintained and commanded a much higher price.