What Florida Buyers
Don't Know to Ask

If you're looking at newer Florida communities, you may come across a CDD — Community Development District.

CDDs are commonly used to finance infrastructure and community improvements, and the assessment is typically collected as part of the property tax bill.

That means two similarly priced homes can have different annual carrying costs depending on the CDD.

They aren't the same thing.

With a homeowners association, you generally own the home and the land and pay the HOA to maintain certain community amenities and common areas.

With a condominium, you're generally purchasing the unit along with an interest in the condominium's common elements — which means the association's financial condition, reserves, insurance, assessments and responsibilities can become very important to you.

A roof can look perfectly fine and still matter to your insurance company.

Its age, condition, remaining useful life and type may affect your ability to obtain coverage or what that coverage costs.

That's why I don't want a buyer asking only: "Does the roof need to be replaced?"

A 4-point inspection generally looks at four major systems: Roof • Electrical • Plumbing • HVAC.

An insurance company may use that information when determining whether it will insure the home and under what conditions.

Something that doesn't seem like a major concern when you're walking through a house could matter to an insurer.

A wind mitigation inspection documents features of the home that may help it withstand wind damage — things such as roof construction, roof-to-wall connections and opening protection.

Depending on the home's features, the report may qualify you for credits that reduce the wind portion of your insurance premium.

In Florida, understanding how a home is constructed can affect more than your peace of mind.

Many buyers ask, "Is the house in a flood zone?" That's a good question — but it isn't the only one.

A property's flood risk, elevation, location and insurance requirements can all matter. And even when flood insurance isn't required by a lender, a buyer may still decide that carrying coverage makes sense.

So rather than stopping at the flood-zone designation, I want my buyers to understand what the property's flood situation could mean for their insurance, costs and comfort level.

Not necessarily.

Age-restricted communities can have different requirements regarding who must be 55+, who else may live in the home and how long younger guests can stay.

This can be especially important if you're buying with a younger spouse or partner, have an adult child living with you, or expect family to visit for extended periods.

Don't assume the rules based on the words "55+."

This is one of the easiest numbers for a Florida buyer to underestimate.

You may see the seller's current property taxes online and assume yours will be similar. They may not be.

The seller may have owned the property for years and benefited from Florida's homestead-related assessment limitations. They may also have exemptions that won't apply to you.

After a sale, the property's taxable value can change — which means your future tax bill could look very different from the seller's current bill.

If you're comparing the cost of owning several homes, don't simply plug the seller's existing property taxes into your budget.

When you buy a condo, you're buying more than what's inside the unit.

You're also becoming part of an association that may be responsible for maintaining and funding significant portions of the property.

That means I want to look beyond the beautiful kitchen and the view. What are the monthly fees? Are there special assessments? What do the association's financials and reserves look like? Are there insurance or building issues? Are there rental, pet or other restrictions that matter to you? Could financing be an issue?

And depending on the building, there may be additional structural inspection, reserve or other requirements to investigate.

Once you're under contract, there are dates and deadlines that matter.

Depending on your contract and transaction, those may involve deposits, inspections, financing, appraisal, association or condominium documents, and closing.

Missing a deadline can potentially affect your rights under the contract — and in some circumstances, your money.

That's why I don't think of a signed contract as the end of the negotiation and due-diligence process.