i am coming to florida to buy a cheap condo asking price 15,ooo dollars, isthat it or do i have to pay additional cost?

Asked by rita smith, Delray Beach, FL Wed Sep 21, 2011

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36
John Walin, Agent, Libertyville, IL
Wed Sep 21, 2011
Surprised so many FL agents missed the elephant in the room! Be prepared to also have to pay HOA in arrears and any special assessments. Many do not allow rentals so owner occupancy is the only alternative. I was very disappointed with those Miami bargains! condos in that price range are typically in insolvent HOA's, no one is paying their HOA's and cannot rent the units. Beware, those units restrictions on use and if the HOA has passed the 20 year inspection. If not, then be prepared to have a special assessment to upgrade building to current code.

if you like my answer, best answer me and thumns up, thanks!
6 votes
John Walin, Agent, Libertyville, IL
Sun Oct 16, 2011
Rita
Wife and I went down to Miami to find a condo last January, disappointing to say the least! Many or most HOA's in that price range are under water and do not have adequate reserves bordering on bankruptcy. Also, FL has a 25 year inspection requirement and if it has been 23 years since last inspection, prepare for a huge special assessment to improve the commons to current code, (in Miami anyway, maybe not Delray). If you are looking at auction foreclosures, those do not have clear title and you are on the hook for back taxes, water bills and liens. Last water Ill throw on it is many HOA's dont allow rentals in order to improve FHA lending score. So unless you live there as primary residence, you cant rent it out! Dont buy what you haven't seen. Make a trip there get inside units. If those 15k units were any good investors would be snapping them up!
3 votes
Justin Ruzic…, Agent, Greenville, SC
Mon Oct 17, 2011
I agree with John, if the $15,000 units were good they would have been purchased by local realtors already. They are probably a dog... If you are looking for investments, then i suspect you will have to spend over $70K even in the "ugly" market we are in. here is a good resource for investment calculations. http://wp.me/P1MLJl-4x

have a good day
2 votes
John Walin, Agent, Libertyville, IL
Mon Oct 17, 2011
Justin is right too! wife and I were looking for $50-75k condo in Miami area and there the threashold for the non-crap was $100k. We're both 50, so would have wanted rent it out and hold for ten years before we got any real use personally of a property. I suggest focusing on bank owned REO's and not short sales. AVOID auctions! Trulia puts starting bid prices on properties and people think they can get it for that starting bid and they wont. Auctions are a bit of a scam. Even if you are highest bidder the bank can throw out your winning bid and try a different auction again. Getting loans under $50 are hard to find without a interest premium. So got to go in all cash, thats why we personally capped at 75k. Guarantee the smart locals are snapping up the good stuff! Have local agent you trust look for recent closed, 3 months, and mimic the buying behaviors of those closings.
One last thing. FL is a presumed transactional brokerage, non agency state and many offices have policies against their agents signing buyer brokerage agreements. Work with someone that is willing to fully represent you and not as a transactional agent. HUGE liability dodge, my pet pieve with FL real estate is that according to the FL law, agents dont even have to discuss agency and who they are working for since it is presumed the public knows that FL is a transactional brokerage state. Technically FL agents are working for the transaction not for you or the seller. It does not rise to the level client representation, advocacy & fiduciary care. Gov Bush passed this no disclosure law before leaving office as a favor to the real estate lobbying interest so people cannnot go after their agent and brokerage if they get buyer remorse.
1 vote
Ira Bloom, Agent, Sarasota, FL
Thu Sep 29, 2011
What may appear to be cheap on the front end may very well be not on the back end. What do you know about the condo occupancy? Are there mostly rentals or are there enough owner occupied units to carry the costs of the association?
Have you inspected the individual unit? What are the other units selling for? Do you like the area? Are there any hidden assessments that you may be liable for? What are the rules for leasing the unit out if you don’t plan on occupying it full time? This is why you need a good realtor in transactions like this plus you still need to be pro active and ask lots of questions as well as reading the condo documents! Don’t let this or any other feedback scare you just proceed with caution.

Ira Bloom
Broker
Bloom Realty Investments LLC
5125 Admiral Pl
Sarasota, FL 34231
direct: 941-587-3509
Fax: 941-924-4470
e-mail: i.irabloom@verizon.net
web site: http://www.bloomrealty.net
1 vote
Gary Hitchco…, Agent, Coral Springs, FL
Thu Sep 22, 2011
I assume you found a $15,000 condo in Delray Beach on an internet site ? Beware the only condos in that price range are in adult communities, i.e. must be 55 or older to purchase there. These Internet sites do not put out this information.
1 vote
Karen Wantuck, Agent, Sarasota, FL
Wed Sep 21, 2011
Your expenses are outlined in your contract. I assume you have a contract?
Usually buyers pay the title closing costs. But hopefully you are also having an inspection done to see what shape the A/C is in, the roof, the hot water heater. Whether the place has termites......

You don't pay for a real estate agent in most cases in the USA.....so why aren't you working with one?

Some buyers think they are so smart finding a place on their own, negotiating the price on there own. But invariably this kind of thinking backfires.
1 vote
Sally Grenier, Agent, Boulder, CO
Wed Sep 21, 2011
Yes, as a buyer you will have closing costs on top of the purchase price. I assume you are paying cash, or are you intending to get a loan? I don't know of any mortgage company willing to loan on such a small amount.

You need to find a Realtor to work for you as a Buyer's Agent. He/she will walk you through the process and explain the other costs involved. If you are paying cash, your closing costs will consist of title insurance, recording fees, and any "pro-rated" items that you need to pay up front like property taxes or HOA fees.
Web Reference:  http://www.sallygrenier.com
1 vote
Steve Vennem…, Agent, Pine Springs, MN
Tue Nov 8, 2011
You usually will need around 2-3% more for closing costs.
0 votes
Carolyn Gian…, , Cape Coral, FL
Tue Nov 8, 2011
Rita-
Please tell me where you are buying a condo for that price? Your name says Delray Beach, FL
I REALLY am dying to know.
Thanks
Carolyn Giandonato
0 votes
Scott Pressm…, Agent, Boca Raton, FL
Tue Nov 8, 2011
There will be additional costs involved
0 votes
Mike and Anna…, Agent, Naples, FL
Mon Nov 7, 2011
There are usually closing costs and prorated fees like taxes and maintenance fees that are in addition to the sales price.
0 votes
Joe Higgins,…, Agent, Miami, FL
Mon Nov 7, 2011
I'm sorry...I did not answer the second part of your question. A rule of thumb would be to calculate 2% times the purchase price to get an estimate of your closing costs. You will probably have to pay "all cash" for a transaction this small....unless you have a lending institution willing to loan such a small amount. Hope this helps!!
0 votes
John Walin, Agent, Libertyville, IL
Mon Nov 7, 2011
Check out this link to trulia lowest prices in Miami dade. It is very deceptive to have auctions starting bids on non foreclosed properties as the first thing you see if you search by price. All realtytrac subscriptions they are trying to sell to buyers thinking they can buy a place cheaper than when working with an agent.
0 votes
John Walin, Agent, Libertyville, IL
Mon Nov 7, 2011
I suspect if you see an auction here on trulia for $15k it is in all liklihood a preforeclosure and realtytrac sells memberships to prospective buyers by promoting auctions here on trulia. I hate it! Buyers end up calling me on a house not yet foreclosed on wanting to write an offer when the owner doesnt care and the bank doesnt have standing yet. I have buyers contacting me that they are interested in a house or condo for a ridiculous price that is actually a starting bid on a non sheriff auction. The auction doesnt have to except highest bidder, the previous liens are still attached to the property so you cant get a mortgage. If you sort by price in an area all you get are satelite pictures and a solicitation to join realtytrac!
0 votes
Darrell Hess, Agent, Asheville, NC
Sun Nov 6, 2011
Most likely the complex will have monthly HOA dues/fees. I would check with your agent to find out the details on that.

Besides the unit monthly expenses there will be closings costs, insurance, escrows, etc.
Web Reference:  http://timetomove.biz
0 votes
Joe Higgins,…, Agent, Miami, FL
Sun Nov 6, 2011
I'm a HUD broker and you may be able to find something around that price range in Florida. Please visit http://www.hudhomestore.com to search for properties. Please call me if I can be of any assistance!!

Joe Higgins, ABR/Broker
800-442-8171
joey@grovetownproperties.com
0 votes
Carolyn Gian…, , Cape Coral, FL
Sun Nov 6, 2011
Where is there a condo for $15,000? HOA fees must be outrageous for that price. Nothing like that in SWFL.
0 votes
Patty Crawfo…, Agent, Fair Oaks, CA
Sat Nov 5, 2011
I agree with most of the responses. The one thing that I tell my buyers who want to purchase a condo is condo's are the first to depreciate in a declining market and last to appreciate in a market that is appreciating. If you buy a condo, think of it as long term residence. A lot of the condominium complexes do not allow you to rent your property out at a later date. They need to be owner occupied. It is something else to think about if you purchase a condominium. Good luck!
Patty Crawford
Lyon Real Estate
916-899-4111
pscrawford@golyon.com
0 votes
Jim Sweat, Agent, Venice, FL
Fri Nov 4, 2011
There will be additional costs.

HOA/condo monthly dues will be ongoing.

Check the financial stability of the HOA. Many of the condos that are selling cheap are in complexes that a high number of owners are not paying their dues. The maintenance still has to be done, common areas and amenities cared for, and those dues are sometimes increased to cover the expenses when only a few are paying.

All the Best,
Jim Sweat
Sandals Realty of Sarasota
Web Reference:  http://www.JimSweat.com
0 votes
Sharon Plover, Agent, Bonita Springs, FL
Thu Nov 3, 2011
Yes, you will more than likely pay additional costs. Depending on the condition of the property you may have expenses to incur in bringing the property up to living conditions. On condos there are usually monthly, quarterly or annual Homeowners Association fees required. You will also have closing costs which will include prorated taxes and other costs. The title company or law firm used for closing will be able to give you the exact amount.
0 votes
Parker Stone, Agent, Branson, MO
Thu Nov 3, 2011
I agree, it may be difficult to find a condo for 15k. If you do find one for 15k or you use that as the down payment, make sure to check on H.O.A. (home owners association) dues and C.O.A. (condo owners association)dues. They could be monthly or yearly and I have seen them in the thousands per year. sometimes people will practically give the condos away to get out from under the dues. Good luck!
0 votes
Anita Zelda…, Agent, Miami Beach, FL
Tue Nov 1, 2011
Hi,

Yes we have some others costs.
But if you want a nice condo, it will be difficult for you to find something with 15,000$...
Web Reference:  http://www.freudrealty.com/
0 votes
Brandy M Bro…, Agent, DeFuniak Springs, FL
Tue Oct 18, 2011
There are several more costs than just the "purchase price". Most of these costs are called "closing costs". There are properties that you can find for that price, although they are few and far between. When buying a home at this price, there will be a lot of work needed to be done. Make sure to do a walk through before you buy and even invest in property inspection. Good luck!
0 votes
Susan J Penn,…, Agent, Weston, FL
Mon Oct 17, 2011
Dear Rita,

Good luck with finding a condo for $15,000.00. Your other costs include title insurance, contents insurance, title company fees, inspection fees. There are always extra costs involved with a purchase.

Susan Penn, PA, EWM realtor
http://www.susanpenn.com
0 votes
Rich Bosselm…, Agent, Holualoa, HI
Mon Oct 17, 2011
Completing a real estate transaction always requires third parties to provide services. There is the escrow company that pays off liens, prepares documents, and performs many other tasks as the neutral third party. The appraiser, who confirms the value of the property. The county recorders office that records documents. The title insurance company that researches and writes the policy. The property inspector and others. You can, of course negotiate to have the seller pay for all of these services but you should also wonder why, they would agree to all of these concessions on a well priced property. Good luck, and remember; if it sounds too good to be true.....you know the rest.
0 votes
Jay Robins, , Boca Raton, FL
Mon Oct 17, 2011
Hi Rita, It depends on the seller and situation. In some cases, that may be it if you structure it properly. Example, paying cash and getting the seller to pay closing costs. I hope that helps! - Jay Robins
0 votes
Jeff Holloway, Agent, Sebastian, FL
Thu Oct 13, 2011
Nice... what does your contract say? There are buyer and seller costs to each side of the transaction. If the seller is willing to pay ALL costs... then yes, if not, then you will have some minimal costs. Your title company can specify what those would be.
0 votes
Joan Lorberb…, Agent, Boca Raton, FL
Tue Sep 27, 2011
Rita,
I know a friend of a friend who came to Florida to buy, as you say, a "cheap" condo. They quickly found out why it was so cheap. There was mold, the air conditioning system needed to be completely rebuilt, there were monies owed to the condo association that they needed to pony up at the closing, they never received condo docs.

I could go on and on but to keep it simple let me just say be very cautious and you get what you pay for.
0 votes
Vivian Laino, Agent, Sunny Isles Beach, FL
Fri Sep 23, 2011
Hi Rita, on top of the contract price you can count at least 3% in closing costs. Good luck!
0 votes
Stephanie Le…, Agent, Miami Lakes, FL
Thu Sep 22, 2011
Hi Rita,

I work the Miami area and I can tell you beware of too good to be true condos for 15k... Make sure you are working with a real estate professional who can advise you on the property. Make sure to do your homework on the property as taxes, hoa payments and the status of the hoa are in good standings ...

If all checks out and you buy this condo in Miami you will need to pay closing cost plus the hoa application fee. Closing cost are typically about 2.5% of the purchase price..

Good Luck.
Stephanie Leon
0 votes
Iris I. Rome…, Agent, Miami, FL
Wed Sep 21, 2011
Yes, you will have to have additional monies for closing. How much depends on the purchase contract you have executed with your seller and I will highly recommend that you obtain the services of a very good inspection comany. I will say that as a purchase of a condominium, if your intent is to rent, I suggest contenta & liability insurance. Furthermire, you will need to pay some monies for closing, as a settlement fee, courier fees, and a few other fees that the settlement agent may charge. These fees are not a large amount, but there are other fees involved with a closing. Charges to look for in a transaction:

1. Application Fee to obtain approval, if applicable; ($100.-$250)
2. Maintenance fees, past and current;
3. Settlement fees; if applicable ($100.00-$300.00)
4. Courier fees and Fed. Express fees; if applicable ($15.-$45.00)
5. Owner's tile insurance which a purchase of $15,000. this fee should not be greater than $100.00;
6. You should also receive a property tax credit from January 1, 2011 to day before closing. This is based on 2010 tax amount.

Hope this helps...best of luck. PS. if the intent is to rent, please make sure that you as the new purchaser are able to rent immediately. Some condos have restrictions on not able to rent for the first 12-24 months...this defeats your investment. Very important...My suggestion is alway obtain the services of a realtor in the area that you are purchasing so that your interest are protected.

Iris I. Romero
Sky~Land International Realty
(305) 608-5209
iiromero@aol.com
0 votes
Yolande Citro, Agent, Miami, FL
Wed Sep 21, 2011
Hello Rita,

You will have to pay closing costs. They should not be very high, considering the price of the condo. Ask the title company (who is doing the closing) to provide you with an estimate of the costs.
Have you seen the condo ? will you do inspections? It is recommended to avoid any surprise.
Good luck
Yolande Citro
305 705 9105
Web Reference:  http://www.yolandecitro.com
0 votes
Jacqueline G…, Agent, Miami, FL
Wed Sep 21, 2011
Yes Rita, you will need to pay your closing cost, these fees are usually on your closing statement.

Good luck and stay well,
Jackie Garcia
Realtor/Associate
Prudential Florida Realty
786-285-9750
0 votes
Annette Law…, Agent, Palm Harbor, FL
Wed Sep 21, 2011
You are paying cash.
This condo is a traditional sale, not bank owned.
Clean title with no additional encumbrances.
You can expect closing costs to be a few hundred dollars for the items listed by Sally.
(title insurance, recording fees, and any "pro-rated" items that you need to pay up front like property taxes or HOA fees.)
Without seeing the purchase agreement, one can not tell if there's a 'gotcha' in there.
You will receive a HUD statement three days before closing that will state the exact amount you must bring. Look closely at what is itemized then get a cashier check for that amount.
0 votes
Tom Priester, Agent, Tequesta, FL
Wed Sep 21, 2011
Rita,

It will depend on the condo and the terms of your purchase agreement. In that price range your best bet will be in 55+ communities. Condition can certainly be an issue as many units will be in original condition or worse. Pay close attention to items that may require immediate replacement like the air conditioning system and appliances.

Best of luck.
Web Reference:  http://www.tompriester.com
0 votes
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