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The Process of Buying a Property in Miami

Posted by Helena Grossberg on December 19, 2014
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Is it easy to buy a property in Florida?

Not as easy as buying something online, but it is not as hard as a Rubik’s cube. Many foreigners fall in love with Miami and decide that this is a place to have a second home. No wonder, this is a beautiful metropolitan city, with fabulous beaches, restaurants, shopping, casinos, and many sports and cultural venues. After seeing many properties, online and on site when you finally find one that makes your heart beat faster, think twice. Then if this is the real one, then the process is really simple. It can take a few weeks and feel like a roller coaster, but it always follows the same path.

  1. The Offer – For regular listings, it is common to make an offer about 10% below the price. For short sales or foreclosures, when the properties are much disputed, the offer is made at least 10% higher than the listed amount. If the property is in really poor conditions, the offer can be even lower. A check should always accompany the offer that upon acceptance will de deposited in a fiduciary account. In case the purchase is not completed, the deposit is returned to the buyer.
  1. The counteroffer – If the owner of the property does not accept the offer, he can make a counter offer, canceling the original offer. If he accepts the offer, both parties are “in contract.”
  1. Inspection – To ensure that the property is in perfect conditions and there is nothing critical, the buyer has a few days to send a licensed and insured company to do an inspection on the property. If anything is found, the buyer has the option to back out of the contract, or request adjustments on the price.
  1. Financing – If the purchase is financed, this is the time to work with the bank or mortgage broker to provide all the necessary documents and show the origin of funds. They will ask for bank statements, tax return, letters from a bank or an accountant, marriage certificate, and other documents that can support the ability to pay the mortgage.
  1. Condominium – When the purchase is on a condominium, it is important to review the statutes, to see if the rules are not too restrictive. Sometimes they do not allow pets, visitors, rentals, remodeling, and everything should be clarified before moving in. There is an interview required in most places so that the buyer and condominium meet each other.
  1. Title – During the buying process, an attorney is chosen, along with a title company that will prepare the title transfer and deed, and ensure that no one else has a claim on the property. They will help verify if there is an open permit, liens, or any kind of encumbrance that would prevent the sale to proceed. They will also prepare the final documents showing all the moneys that are being transferred to all parties during the transaction.
  1. Closing and Tendering of Keys – This is the moment of celebrations, and it can happen almost two weeks after the offer if the purchase is all cash, or in 45 days or with an extension if the purchase is financed. Financing requires a final interview with the bank, typically the day before closing.

See how easy it is? Knowing these simple steps, and providing all the documents that the bank and the title company require right away can speed up the process. Now that you know how simple the process is, come by our offices for a cup of coffee and chose your new apartment too. And buy with confidence.

  • Preconstruction Condo Map