You finally found the home of your dreams. Now you need to be certain that your dream won’t turn into a nightmare.
Hiring a home inspector will probably be the best money you spend during the purchasing process. An inspector is looking for hidden issues that the future owner may not have noticed, as well as the physical structure, from the roof to the foundation. The inspection takes between two and four hours and in Florida will cost the buyer in the range of $650 for a 2,000-square-foot single-family house. Other inspections, like termites, pool, mold and radon, would be additional charges. There are 35 states that require home inspectors to be licensed, and Florida is among them.
Home inspections are visual inspections only, not invasive. Inspectors are thorough and it’s unusual for them to miss something, but if they do miss a minor item, something non-structural, they frequently will take responsibility for the repair. If there is a significant issue or something breaks during the course of the inspection, inspectors will likely turn it over to their insurance company.
As the buyer, you have a vested interest in the outcome of the inspection, so it’s important to attend the inspection. Walk through the home with the inspector, ask questions and verify that the inspector runs all the appliances through a cycle. You’ll learn a lot about your future house. If there is a problem or something that needs to be replaced, the inspector can give you an idea of the cost and the timeline.
Florida is “condo land” and you may think an inspection is not required. That’s something you should rethink. The cost of a new refrigerator (because you didn’t notice it was running warm) would cost more than the inspector.
Now it’s time to check the February sales statistics reported by the Realtor Association of Sarasota and Manatee.
Single-family home sales were up 10% from last February. The median sale price was $489,634, up 2.9% from last year. The average sale price was $673,021, up 2.5%. The median time to contract was 65 days, compared to 46 days last year. The months’ supply of available properties was 4.8 months, compared to 4.9 months last year.
Condo sales were down 18.7% from February of last year. The median sale price was $311,995, down 2.5%. The average sale price was $369,085, up 3.3%. The median time to contract was 67 days, compared to 51 days last year. The months’ supply of available properties was 7.5 months, compared to 8.3 months last year.
Even though condo sales were substantially down, I feel the extreme cold weather in the northeast and in Florida discouraged the typical condo buyer from moving forward. However, single-family homes are showing a serious recovery this month.
Cash sales were up 6% for single-family home buyers and up 7.4% for condo buyers. These strong increases, particularly in the condo market, could indicate activity for investors and second home buyers.
Home inspections are important to the real estate transaction and should never be waived. Every repair required in owning a home is super expensive, not to mention a nightmare, so be sure to know ahead of closing what you can expect. Negotiate accordingly, budget for unexpected repairs and you’ll sleep soundly.
