Buying a house is part of the American dream, but also a major decision and investment. Before purchasing a Florida home, you'll want to determine how much you can afford, what neighborhood you want to live in, and what features you need or want in a home. You also need to be aware of certain legal issues concerning seller disclosures, purchase contracts, and property title. We'll discuss all of these here.
Florida is famous for its strong economy, lack of state income tax, cultural diversity, casual vibe, and mostly pleasant weather, perfect for enjoying its beaches, golf courses, parks, and cultural destinations.
That's why, despite ups and downs in the national housing market, the Florida market has remained strong, with stable home prices and a healthy amount of inventory (according to information from the Florida REALTORS Association). The median price statewide was $394,728 in Autumn of 2024. Unfortunately, these prices can make purchasing a home a challenge.
To deal with the competition, you'll want to carefully research your local market (as you're starting to do here), visit homes to get a sense of what's available in your price range (allowing for possible bidding wars that take the selling price way over the list price), and get your finances in order.
Have You Saved Up for a Down Payment?
Traditionally, home buyers put down up to 20% of the purchase price on a home. Lenders like to see that much (and are delighted to see more), because it reduces their risk if you stop making your monthly payments or otherwise default and they then have to foreclose.
You've probably been setting money aside for a down payment already, but now is the time to ratchet that process up, and to avoid making any major new purchases (particularly on credit). After all, 20% of a home priced at the median in Florida is a daunting $79,000.
Florida also offers programs to assist with down payments or first-time home purchases.
Advantages of Working With a Real Estate Agent in Florida
Choosing a real estate agent can be an important step in this process. Your agent will help you not only locate a suitable home, but handle complex procedures involved with the purchase. The benefits of working with an agent including their:
- knowledge of the community, median home prices, and market conditions
- ability to match available homes to your needs and budget
- help preparing a viable offer and handling other paperwork, and
- role in negotiating the final deal.
Your agent should be able to assist you every step of the way, from drafting your written offer and negotiating with the seller on price and other key terms to coordinating the escrow process and house closing. Your agent can also help you locate other professionals to assist in the home buying process, including mortgage brokers and home inspectors.
Good news: Working with a real estate agent might not cost you anything. Traditionally, the seller pays the entire real estate commission, around 5% to 6% of the house sale price, which is then split between the seller’s agent and yours. Although recent court settlements might change this basic structure, it hasn't happened yet.
Personal referrals from other home buyers are usually the best way to select a real estate agent. You can find licensed Florida real estate agents at the Florida Department of Business & Professional Regulation's Licensee Search. Also check out real estate websites that offer customer reviews of real estate agents.
Seller Disclosure Requirements in Florida
State law in Florida (Johnson v. Davis, 480 So.2d 625 (Fla. 1985)) requires sellers to disclose any known facts or conditions about their property that have a substantial impact on the value of the property and that others cannot easily observe. The seller will fill out and give you a disclosure form setting forth the seller's knowledge of the following types of details regarding the property:
- whether specific appliances need repair
- defects in the electrical, plumbing, and heating and air conditioning systems
- environmental conditions, such as termites or asbestos
- issues with the structure, including the roof, foundation, and walls
- legal issues including deed restrictions and boundary disputes, and
- other specified details of the property.
Florida law also contains some specific requirements, including that sellers disclose the dangers of radon gas, as is commonly found in Florida homes (Florida Statutes §404.056(5); if it's a coastal property, the potential for erosion and a warning about regulations that Florida coastal property owners must follow (Florida Statutes §161.57); and if it's within a community governed by a condo or homeowner’s association, information about its rules for homeowners (Florida Statutes §720.401 and, specifically for condominiums, Florida Statutes §718.503).
The seller must also give a property tax disclosure to the buyer, explaining that property taxes might change after the buyer purchases the house (see Fla. Stat. § 689.261).
Seller disclosures are important for you to review carefully, since just looking at a property might not be enough to tell you what problems its owner encountered while living there or what problems are likely to arise there.
In addition to state-required disclosures, sellers of houses built before 1978 must comply with federal Title X disclosures regarding lead-based paint and hazards. See the lead disclosure section of the EPA’s website for details.
Home Inspections in Florida
Buyers should not rely solely on the seller's disclosures, but should hire an independent home inspector to double check the information on the seller's disclosure and discover any unknown issues or defects the house might have.
The inspector should look at everything from the heating, cooling, electrical, and plumbing systems to the structural integrity of the house, including whether termites or other pests are present. You might, however, need specialized inspectors for unusual structures such as swimming pools, docks, and landscaping, or conditions beyond the general inspector's expertise.
Many buyers make their offer contingent upon a satisfactory inspection report to be sure no material defects exist. If there are material defects, then the buyer can either renegotiate or cancel the sale.
If you're in such a tight market that you're tempted to waive (go without) the inspection contingency so as to make your offer stand out, do what you can to protect your interests in other ways. For example, you might bring a contractor or friend with relevant knowledge and skills to your house visits, so you'll have some idea of what you're getting yourself into. Some home sellers also commission their own inspection report before putting the house on the market, but they might not have chosen the most nitpicky inspector out there, so research that inspector's reputation before staking your future on the results.
Real Estate Purchase Agreements in Florida
A purchase agreement is a legal document that contains the material terms and conditions of your real estate transaction. It must be in writing and signed by the parties (buyers and sellers) to the contract, and include an offer to sell or purchase, an acceptance of the offer, the sale price, and an adequate description of the property.
Your Realtor will probably use a standard form prepared by the Florida Realtors Association. You will normally fill this out first as the buyer and present it to the seller as your purchase offer.
Title Issues in Florida
A buyer should always obtain a title search from a title company before purchasing a home. The title company searches public records and other sources for any liens, easements (such as the utility company’s right to access part of the property), or other encumbrances or title restrictions that may affect the property.
If the title search locates problems, the seller is expected to correct these as a condition to closing.
Mortgage companies usually require buyers to purchase a title insurance policy in connection with obtaining a loan. If your lender doesn't require you to purchase title insurance, consider purchasing it anyway, to help defend your title to the property against adverse claims by third parties or any clouds on the title missed by the title search.
Working With a Lawyer in Florida
Unlike some states, Florida does not require that buyers involve a lawyer in the house-buying transaction. Even if it’s not required, you might decide to engage a lawyer in special situations, for example if you are purchasing a house jointly with others and need help structuring your co-buyer agreement. Or, you might want a lawyer’s help if problems arise during escrow or the house closing.
Check out our lawyer directory to find an experienced real estate attorney in Florida.