Florida Property Management
In Florida a good deal of homes are bought with the idea of renting them out (short or long term) to help offset costs. A good rental agent can help you immensely in this area.
The pages listed in the area Real Estate sections, under property management; list local Agents or companies who specialize in these areas.
Ask your agent if his company has a rental department and get the name of the agent.
Important to know: Ask the rental agent-or firm the following-
• The percentage the Broker keeps for rentals. (short term-long term) For more specifics on rentals see the Investment link for your area.
• How the cleaning fees work.
• What about maintenance---do they have handy men?
• What if a hurricane is approaching-who will button up the home.
• What about major repairs-AC-plumbing-electrical-who are the vendors they use.
• What kind of checks do they do with prospective tenants---Long term (credit checks-references etc)
• Short term-deposits.
• Make sure you create a pet policy (allowed or not and if so –how much pet deposit)
• What are the local zoning laws re rentals (VERY Important)
• When do you get you money (generally paid at a specific time each month)
• What about cancelations (last minute etc) what is their policy.
• How will they promote the property (Web site-flyers)
• Ask for references!
These are just a few things you need to know about. ) For more specifics on rentals see the Investment link information for your area.
In conclusion, some companies and especially Rental agents are very good at both renting the property out and follow through with both the owners and with prospective renters. It is a good idea to ask for references and then do follow them up. Ask the home owners, how good their rental agent is about communicating with them( among other things.) Finding the right rental agent is extremely important to your interests.
Ask lots of questions. This is your investment
Monday, December 26, 2005
Monday, December 19, 2005
Florida Real Estate Agents
Florida Residential Property agents
A few things to know about meeting with an agent. (either in person or by phone-email:)
• When meeting with an agent ask them, how they will represent you—ask them to explain the different categories.
When you arrive to look at homes:
• Have a letter of pre qualification or your bankers phone number. That way, is if you do find a property you like and put in an offer, your agent can tell the listing agent that you are pre-qualified.
• if you go to the trouble to have or offer proof of financial ability, you are in a position to possibly negotiate a better price or other terms, as you will be considered a real or qualified buyer.
• All REALTORS work off the internet and MLS listings-so they know which properties are current.
• if you pull out a Real Estate publication and ask about a specific property and it is sold-remember that the publications generally have a 45 day lead in time to place the ads. In areas where property is hot-the listings will usually already be sold or under contract, by the time you look at the book.
• If you like the agent you’re with the stick with them! If you don’t like the agent tell them you’re going to rethink your position. Good agents are service oriented, really know their areas and can partner with you in helping you find the right home.
• If you find a home you like, ask the agent to pull up some comps. (What has sold in that area and what is currently for sale
• #In some cases, Comps can be misleading because if the area is hot the prices can increase faster than the comps can keep up.
• If you find a home you want-DO all the inspections and don’t be afraid to ask questions.
For more in depth information see below. (information provided from Florida assn of REALTORS)
Working With a Real Estate Agent
How to deal with a real estate agent when you buy a house.
Most homebuyers use a real estate agent or broker to help find a home, negotiate the contract and handle other details of the house purchase process. But before you hire an agent, learn all you can the homebuying transaction. You need to be knowledgeable about your ideal home and neighborhood, your financing needs and options, your legal rights and how to evaluate comparable prices before you know what to expect from the professional who will assist you.
How Real Estate Agents Are Paid
Real estate agents work on commission, not salary, and get paid only after your home search is over, the contract negotiated and the transaction complete. Under the typical arrangement, the seller pays the commission to the real estate agent, and the agent's services are free to the buyer. Most listing brokers get sellers to pay 5% to 7% of the sales price. For probate sales, commissions are set by the probate court. And for more expensive homes, say over $500,000, or in competitive markets, sellers can sometimes negotiate a lower commission rate.
Because most real estate transactions involve two brokers -- one that produces the buyer and one that helps the seller -- the commission is divided, usually 50-50, between the two brokerage offices. Then, within each office, the salesperson who handled the transaction gets a share, usually 50%.
Choosing an Agent
The agent or broker you choose should be in the full-time business of selling real estate and should have, ideally, at least the following five traits: integrity, business sophistication, experience with the type of services you need, knowledge of the area where you want to live and sensitivity to your tastes and needs.
Get two or three recommendations from friends, family, co-workers and others you trust. The best referrals come from those who've recently bought or sold a home.
Ask each agent who's been referred to you to recommend one or two people (other than themselves) they consider top-notch agents who can fulfill your needs. It's a question the agent likely won't expect, but if he or she balks or refuses to answer, there are plenty of agents who will. Not only can the question provide you with others to interview, it also tests the agent's honesty and integrity.
Don't work with an agent you meet at an open house, find in the Yellow Pages or on the Internet without thoroughly checking their credentials, experience and practice.
All states regulate and license real estate agents and brokers. Only agents who meet minimum levels of state-mandated education, training and testing are licensed. Brokers, who generally oversee agents, have more training, education and experience. Ask for proof. The license offers you a layer of consumer protection should something go wrong.
State Real Estate Departments and Commissions
Many of the state agencies that regulate real estate agents and brokers have Websites. To find the regulatory agency in your state and check real estate laws and regulations, see U.S. State Resources on Findlaw at http://www.findlaw.com/11stategov/index.html. Start by looking at your state's home page for the state real estate department or commission.
Credentials
Real estate professionals obtain additional credentials from their trade associations, which require a state license before the individual can join. While credentials alone don't guarantee an agent's or broker's success, they do indicate a certain level of professional achievement that can translate into a less worrisome transaction.
Trade group membership is not legally required, but most residential real estate sales are conducted by trade group members. Trade groups offer yet another layer of consumer protection by mandating that members adhere to standards of practice and a code of ethics. Trade group members are also privy to listings, market information and other data non-members must struggle to obtain.
Trade group affiliation also gives agents the opportunity to attain special credentials and designations that indicate a member has achieved higher levels of professional skill. There are relatively few of these agents and brokers, identified by certain initials (much like post-graduate degrees) on business cards and other documents. The National Association of Realtors (NAR) offers GRI (for Graduate Realtors Institute), CRS (Certified Residential Specialist), CRB (for Certified Real Estate Brokerage Manager, a designation that is the brokers' counterpart to the CRS). Less than one-half of one percent of association member brokers have this CRS designation.
NAR also sanctions specialists' designations for relocation and international sales expertise as well as other specialties, should you need them.
Many real estate companies also offer special in-house training programs resulting in achievements that match NAR's designations.
Legal and Financial Relationships with Brokers
While you may have different options as to the type of legal relationship you have with an agent or broker, normally the seller pays the commission of the real estate salesperson who helps the buyer locate the seller's house. What this means is that a homebuyer's agent or broker has a build-in conflict of interest: Unless you've agreed to pay the agent separately, she won't get paid until you buy a home, and the more you pay for a house, the bigger the agent's cut.
Beware of dual agency -- that is, an agent, brokerage or company representing both the buyer and seller. Legal in many states, dual agency nevertheless comes with an inherent conflict of interest as the agent attempts to fairly represent two opposing clients and collect the full commission.
Consider working with a buyer's agent who represents you exclusively (not both you and the seller) and is more likely to work with your best interests at heart. He or she will split the total 5% to 7% commission with the listing agent.
If you don't want to pay the going commission, consider a discount broker who will charge you a reduced commission as small as 1%. Others offer you a "fee for services" rate. You select from a menu of services, such as preparing the written offer, and pay only for those you need. Discount services are available from franchise operations such as Help-U-Sell (http://www.helpusell.com), as well as from other independent real estate companies and individual brokers.
The advantage of hiring a broker by the service or hour is that you get expert help with no built-in conflict of interest. The disadvantage is that you may have trouble locating an outstanding broker by the hour or service. Also, you pay for the hours you use whether or not you buy a house and you must do a lot of legwork yourself, such as negotiating with the seller.
Interviewing Agents
Once you've selected several real estate agents, let each know you want to interview him or her for 45 minutes to an hour. You can talk in person or on the telephone. Arranging the interview is a test of the agent's willingness to spend time with you and his or her punctuality. Ask the broker to sit in if you interview an agent. That will help you learn how not just the agent works, but his or her office as well.
During the interview, explain your needs, how you like to work and what you expect. Ask the agent to speak in English, not industry jargon and acronyms. Let the agent know you are still learning about the home-buying process.
Here are some of the major issues to discuss:
• The number of homes the agent found for buyers and sold for sellers. Don't accept a dollar amount answer. Ask for the addresses of recent transactions. Scan the list for homes similar in price to what you can afford. Determine if the homes are in the general neighborhood or community where you are buying. If so, get the agent to talk about what you can expect for your money and the pros and cons of the neighborhood or community.
• Listings that haven't sold. Ask why, but don't blame the agent for homes that were overpriced and sellers who've refused to reduce the price to a fair market value.
• Names of past clients. Ask for names of both buyers and sellers who can provide references.
• Financing. Ask the agent about mortgages, including special and new loan programs, creative financing, mortgage brokers and lenders and other financial details specific to your needs. Also ask about insurance and taxes.
• Management and communication tools. The real estate transaction is an esoteric entanglement of details, tasks and duties. Ask the agent to explain how he or she gets the job done, both online and off. Inquire as to how often the agent will report to you on sales activity or buying leads. You'll have to determine how much is enough for you, but once a week is a minimum in a stable market. Daily check-ins could be necessary in a hot market. Ask to see logs, checklists, worksheets and other tools or documents the agent uses to keep track of the details from the house search and financing through negotiating an offer and closing the deal.
• Representation. Will the agent act as a dual agent representing sellers with homes you may want to buy? If he or she is a buyer's agent, representing you exclusively, ask if a contract with fees is required. Also ask buyer's agents about fees in lieu of commissions, the duration of any contracts and other details.
As you ask questions and discuss your needs, consider how well the agent listens to your anxieties, fears and concerns. You want to feel that the agent cares more about your needs than collecting the commission or making a quota.
Once you've chosen an agent, don't double dip. Loyalty and time commitment is a two-way street. If your agent doesn't have your full attention, he or she may reciprocate. You'll also get a disconcerting array of advice and opinions, at a time when you need straight talk.
A few things to know about meeting with an agent. (either in person or by phone-email:)
• When meeting with an agent ask them, how they will represent you—ask them to explain the different categories.
When you arrive to look at homes:
• Have a letter of pre qualification or your bankers phone number. That way, is if you do find a property you like and put in an offer, your agent can tell the listing agent that you are pre-qualified.
• if you go to the trouble to have or offer proof of financial ability, you are in a position to possibly negotiate a better price or other terms, as you will be considered a real or qualified buyer.
• All REALTORS work off the internet and MLS listings-so they know which properties are current.
• if you pull out a Real Estate publication and ask about a specific property and it is sold-remember that the publications generally have a 45 day lead in time to place the ads. In areas where property is hot-the listings will usually already be sold or under contract, by the time you look at the book.
• If you like the agent you’re with the stick with them! If you don’t like the agent tell them you’re going to rethink your position. Good agents are service oriented, really know their areas and can partner with you in helping you find the right home.
• If you find a home you like, ask the agent to pull up some comps. (What has sold in that area and what is currently for sale
• #In some cases, Comps can be misleading because if the area is hot the prices can increase faster than the comps can keep up.
• If you find a home you want-DO all the inspections and don’t be afraid to ask questions.
For more in depth information see below. (information provided from Florida assn of REALTORS)
Working With a Real Estate Agent
How to deal with a real estate agent when you buy a house.
Most homebuyers use a real estate agent or broker to help find a home, negotiate the contract and handle other details of the house purchase process. But before you hire an agent, learn all you can the homebuying transaction. You need to be knowledgeable about your ideal home and neighborhood, your financing needs and options, your legal rights and how to evaluate comparable prices before you know what to expect from the professional who will assist you.
How Real Estate Agents Are Paid
Real estate agents work on commission, not salary, and get paid only after your home search is over, the contract negotiated and the transaction complete. Under the typical arrangement, the seller pays the commission to the real estate agent, and the agent's services are free to the buyer. Most listing brokers get sellers to pay 5% to 7% of the sales price. For probate sales, commissions are set by the probate court. And for more expensive homes, say over $500,000, or in competitive markets, sellers can sometimes negotiate a lower commission rate.
Because most real estate transactions involve two brokers -- one that produces the buyer and one that helps the seller -- the commission is divided, usually 50-50, between the two brokerage offices. Then, within each office, the salesperson who handled the transaction gets a share, usually 50%.
Choosing an Agent
The agent or broker you choose should be in the full-time business of selling real estate and should have, ideally, at least the following five traits: integrity, business sophistication, experience with the type of services you need, knowledge of the area where you want to live and sensitivity to your tastes and needs.
Get two or three recommendations from friends, family, co-workers and others you trust. The best referrals come from those who've recently bought or sold a home.
Ask each agent who's been referred to you to recommend one or two people (other than themselves) they consider top-notch agents who can fulfill your needs. It's a question the agent likely won't expect, but if he or she balks or refuses to answer, there are plenty of agents who will. Not only can the question provide you with others to interview, it also tests the agent's honesty and integrity.
Don't work with an agent you meet at an open house, find in the Yellow Pages or on the Internet without thoroughly checking their credentials, experience and practice.
All states regulate and license real estate agents and brokers. Only agents who meet minimum levels of state-mandated education, training and testing are licensed. Brokers, who generally oversee agents, have more training, education and experience. Ask for proof. The license offers you a layer of consumer protection should something go wrong.
State Real Estate Departments and Commissions
Many of the state agencies that regulate real estate agents and brokers have Websites. To find the regulatory agency in your state and check real estate laws and regulations, see U.S. State Resources on Findlaw at http://www.findlaw.com/11stategov/index.html. Start by looking at your state's home page for the state real estate department or commission.
Credentials
Real estate professionals obtain additional credentials from their trade associations, which require a state license before the individual can join. While credentials alone don't guarantee an agent's or broker's success, they do indicate a certain level of professional achievement that can translate into a less worrisome transaction.
Trade group membership is not legally required, but most residential real estate sales are conducted by trade group members. Trade groups offer yet another layer of consumer protection by mandating that members adhere to standards of practice and a code of ethics. Trade group members are also privy to listings, market information and other data non-members must struggle to obtain.
Trade group affiliation also gives agents the opportunity to attain special credentials and designations that indicate a member has achieved higher levels of professional skill. There are relatively few of these agents and brokers, identified by certain initials (much like post-graduate degrees) on business cards and other documents. The National Association of Realtors (NAR) offers GRI (for Graduate Realtors Institute), CRS (Certified Residential Specialist), CRB (for Certified Real Estate Brokerage Manager, a designation that is the brokers' counterpart to the CRS). Less than one-half of one percent of association member brokers have this CRS designation.
NAR also sanctions specialists' designations for relocation and international sales expertise as well as other specialties, should you need them.
Many real estate companies also offer special in-house training programs resulting in achievements that match NAR's designations.
Legal and Financial Relationships with Brokers
While you may have different options as to the type of legal relationship you have with an agent or broker, normally the seller pays the commission of the real estate salesperson who helps the buyer locate the seller's house. What this means is that a homebuyer's agent or broker has a build-in conflict of interest: Unless you've agreed to pay the agent separately, she won't get paid until you buy a home, and the more you pay for a house, the bigger the agent's cut.
Beware of dual agency -- that is, an agent, brokerage or company representing both the buyer and seller. Legal in many states, dual agency nevertheless comes with an inherent conflict of interest as the agent attempts to fairly represent two opposing clients and collect the full commission.
Consider working with a buyer's agent who represents you exclusively (not both you and the seller) and is more likely to work with your best interests at heart. He or she will split the total 5% to 7% commission with the listing agent.
If you don't want to pay the going commission, consider a discount broker who will charge you a reduced commission as small as 1%. Others offer you a "fee for services" rate. You select from a menu of services, such as preparing the written offer, and pay only for those you need. Discount services are available from franchise operations such as Help-U-Sell (http://www.helpusell.com), as well as from other independent real estate companies and individual brokers.
The advantage of hiring a broker by the service or hour is that you get expert help with no built-in conflict of interest. The disadvantage is that you may have trouble locating an outstanding broker by the hour or service. Also, you pay for the hours you use whether or not you buy a house and you must do a lot of legwork yourself, such as negotiating with the seller.
Interviewing Agents
Once you've selected several real estate agents, let each know you want to interview him or her for 45 minutes to an hour. You can talk in person or on the telephone. Arranging the interview is a test of the agent's willingness to spend time with you and his or her punctuality. Ask the broker to sit in if you interview an agent. That will help you learn how not just the agent works, but his or her office as well.
During the interview, explain your needs, how you like to work and what you expect. Ask the agent to speak in English, not industry jargon and acronyms. Let the agent know you are still learning about the home-buying process.
Here are some of the major issues to discuss:
• The number of homes the agent found for buyers and sold for sellers. Don't accept a dollar amount answer. Ask for the addresses of recent transactions. Scan the list for homes similar in price to what you can afford. Determine if the homes are in the general neighborhood or community where you are buying. If so, get the agent to talk about what you can expect for your money and the pros and cons of the neighborhood or community.
• Listings that haven't sold. Ask why, but don't blame the agent for homes that were overpriced and sellers who've refused to reduce the price to a fair market value.
• Names of past clients. Ask for names of both buyers and sellers who can provide references.
• Financing. Ask the agent about mortgages, including special and new loan programs, creative financing, mortgage brokers and lenders and other financial details specific to your needs. Also ask about insurance and taxes.
• Management and communication tools. The real estate transaction is an esoteric entanglement of details, tasks and duties. Ask the agent to explain how he or she gets the job done, both online and off. Inquire as to how often the agent will report to you on sales activity or buying leads. You'll have to determine how much is enough for you, but once a week is a minimum in a stable market. Daily check-ins could be necessary in a hot market. Ask to see logs, checklists, worksheets and other tools or documents the agent uses to keep track of the details from the house search and financing through negotiating an offer and closing the deal.
• Representation. Will the agent act as a dual agent representing sellers with homes you may want to buy? If he or she is a buyer's agent, representing you exclusively, ask if a contract with fees is required. Also ask buyer's agents about fees in lieu of commissions, the duration of any contracts and other details.
As you ask questions and discuss your needs, consider how well the agent listens to your anxieties, fears and concerns. You want to feel that the agent cares more about your needs than collecting the commission or making a quota.
Once you've chosen an agent, don't double dip. Loyalty and time commitment is a two-way street. If your agent doesn't have your full attention, he or she may reciprocate. You'll also get a disconcerting array of advice and opinions, at a time when you need straight talk.
Sunday, December 18, 2005
Building a home in Florida
Florida Building a Home
Picking a location, buying a lot and then building a home in Florida, can be anywhere from easy to a nightmare (based on location and environmental concerns)
If however you have some expertise in this area and are not in a rush, finding a lot and building your dream home may be the way to go.
The cost of building will vary widely from $50.00 per square foot to $300.00 and even more. (depending on quality of construction and area resources)
If you are looking to build a new home and use an established Florida builder in a developed area or one under construction, then it is much easier.
Lot Prices are based on location:
Most expensive to least expensive
1 Open-water—Atlantic or Gulf
2 Open-water Inter-Coastal or other Rivers-Lakes
3 Canal Homes with Open water views (Bay or Atlantic-Gulf)
4 Canal homes-Boat able and quick access to open-water
5 Dry Lots—price widely varies based on the community and area.
*As to canal lots and how boat ability affects prices.
If the depth of the canal and the width allows for a 50ft boat or sailboat-it will be more expensive than a lot on a canal that is shallow and usually not as wide. The bigger the boat, the more room needed to turn around.
*Access to open water is another factor that influences prices.
If you’re only minutes (half hour or less) to good fishing-diving, expect to pay more.
Also homes on shorter canals will generally have better water quality. In the Keys we call these swimming canals. The tides flush them out and the water is clearer.
As to building in the Keys-this is a whole different matter due to strict environmental concerns. See The Keys area link and go to building a home, where it’s explained in depth.
A few other things. If you are a builder, you can come here and apply for a permit and sub the work out, however a Florida architect is generally needed as the home has to meet strict Florida codes.
If you’re thinking about buying a lot and having a builder do it for you, see
www.americanbuilders.com/fl
(Information below from Brevard county but is generally applicable statewide-as stated always check with the local building departments first).
Building Permits - Do I need one?
As a general rule, the answer is YES - any construction work that is regulated by adopted Building Codes and Fire and Public Safety Regulations requires a permit before work can begin.
Permit Requirements - It is not surprising that many property owners, including condo unit owners, are not familiar with local building codes. Many property owners think that it is the contractor’s responsibility to make sure a building permit has been obtained. This is not true. The property owner is held responsible for obtaining the building permit.
The building code is not another red-tape nuisance. There are good, sound reasons for having these regulations. First and foremost, the building code protects YOU! It ensures that the completed work meets specific quality standards that will protect you and your neighbors.
Sometimes a contractor may try to skirt the building permit requirement. If the code inspector finds the work in progress without the required permit, the property owner is cited (and not the contractor) for having work done without a permit. This can result in double fees for the permit and/or fines for having work done without a permit.
The Cities/Areas of Florida requires building permits for the following reasons:
The State of Florida requires standards of construction for all properties in the State. On a barrier island, those standards are even higher than those parts of Florida not as critically exposed to tropical storms. The State relies on local government to enforce these regulations.
Construction projects that involve outside work require compliance with zoning regulations that include proper property line setbacks, adherence to land use designations and clearance for utility infrastructure and right-of-ways.
Work that must be done by licensed professionals with insurance coverage to protect you and your neighbors.
(Improperly completed work can result in damage to your property and that of your neighbors)
• Air conditioning / heat system change outs Piers
• Balcony restoration Pilings and posts
• Boathouses and boatlifts Plumbing (movement or replacement of fixtures or pipes)
• Commercial floor plan alterations Pool construction, renovation or re-surfacing
• Concrete slabs, patios & gazebos Roof repairs and re-roofing
• Decks Screen enclosures
• Demolition work of any kind Seawalls (construction or repairs)
• Docks - new, repair or replacement Sheds
• Dredge and fill projects Siding
• Driveways and curb cuts Signs and signage (temporary or permanent)
• ALL Electrical work Soffits (new and replacement)
• Facia work Solar heating systems
• Fences and fencing (new and replacements) Structural alterations or repairs of any kind
• Fire alarms and sprinkler systems Tents
• Handrails - external (new and replacements) Water heaters (new or replacement)
• Hurricane shutters Water wells
• Paneling, wall and floor coverings Window replacements
This list covers the more common projects - it does not cover all activities that require permits. It is advisable to call the Building Department before starting your work if you are not certain if a permit is required. Remember: Reputable contractors know which jobs require permits in their area and they then obtain the permits as required.
When application is made for a building permit, the City checks to make sure the contractor is properly licensed and that the work is done by a licensed professional with the required liability insurance. When the work is completed, a building inspector from the city then inspects the completed job to make sure it was done properly and complies with the city code. This protects you! These requirements protect you and your neighbors from shoddy work that may result in later damage (fire, leaks and blowing debris, e.g.)
So next time you consider having work done on your property, please call the City first to find out if a permit is required and then make sure the contractor gets the building permit before work begins.
Frequently Asked Questions
• How much does a Building Permit cost?
The cost of the permit depends on the type of work to be done and the cost of the project to be completed. All permit fees are regulated by and specified in the City Code of Ordinances.
• Will my contractor obtain the permit?
The reputable contractors know the requirements and abide by them. Unfortunately, not all contractors comply with the City code. Remember, it is the property owner who is responsible for ensuring that all work on his/her property is preceded by acquisition of the appropriate permits.
• How do I find out if my contractor is licensed?
State law requires that all construction work be done by a licensed contractor. Residents are discouraged from hiring unlicensed contractors. Both the unlicensed contractor and the owner who ordered the work may be subject to severe fines and penalties. Call the local Building Department to verify a contractor's status before you sign a contract for repairs or construction work.
• What else should I ask a proposed contractor about?
To protect yourself from a lawsuit, verify that the contractor has adequate workers compensation and general liability insurance coverage. The City requires contractors to file proof of such insurance coverage before any work can begin.
• Is the contractor required to get any other permits?
Contractors are required to obtain occupational permits in order to solicit or perform any type of construction work in the City. The City will not issue the permit unless the contractor first provides proof of the appropriate insurance coverage.
• What happens if I get caught doing work without a building permit?
Minimally, the building inspector will issue a "cease work" order until you obtain the proper building permit. The minimum penalty for doing work without a permit is that you will be charged twice the normal fee for the building permit for the type of work you are having done. If the work being done is in violation of the building codes or the zoning regulations, the work must be changed to comply or else the work must be undone. Matters of non-compliance are referred to a City's Code Enforcement Board which has the authority to review the case and impose fines up to $250 per day or more until compliance is achieved.
The building codes are meant to protect you by ensuring work meets defined quality standards. The building permit fee includes a review of the work plans by a professional building inspector employed by the City and in many cases, a field inspection of the work by the building inspector.
In conclusion, play it safe and do it right. This will certainly help you in the Insurance area also---The extra structural costs for doing it better really pay off if a storm hits and or you decide to sell.
Link to Florida building code information
http://www.floridabuilding.org/bc/default.asp
Link to the Florida 2004 building code draft
http://www2.iccsafe.org/florida_building_code/
Picking a location, buying a lot and then building a home in Florida, can be anywhere from easy to a nightmare (based on location and environmental concerns)
If however you have some expertise in this area and are not in a rush, finding a lot and building your dream home may be the way to go.
The cost of building will vary widely from $50.00 per square foot to $300.00 and even more. (depending on quality of construction and area resources)
If you are looking to build a new home and use an established Florida builder in a developed area or one under construction, then it is much easier.
Lot Prices are based on location:
Most expensive to least expensive
1 Open-water—Atlantic or Gulf
2 Open-water Inter-Coastal or other Rivers-Lakes
3 Canal Homes with Open water views (Bay or Atlantic-Gulf)
4 Canal homes-Boat able and quick access to open-water
5 Dry Lots—price widely varies based on the community and area.
*As to canal lots and how boat ability affects prices.
If the depth of the canal and the width allows for a 50ft boat or sailboat-it will be more expensive than a lot on a canal that is shallow and usually not as wide. The bigger the boat, the more room needed to turn around.
*Access to open water is another factor that influences prices.
If you’re only minutes (half hour or less) to good fishing-diving, expect to pay more.
Also homes on shorter canals will generally have better water quality. In the Keys we call these swimming canals. The tides flush them out and the water is clearer.
As to building in the Keys-this is a whole different matter due to strict environmental concerns. See The Keys area link and go to building a home, where it’s explained in depth.
A few other things. If you are a builder, you can come here and apply for a permit and sub the work out, however a Florida architect is generally needed as the home has to meet strict Florida codes.
If you’re thinking about buying a lot and having a builder do it for you, see
www.americanbuilders.com/fl
(Information below from Brevard county but is generally applicable statewide-as stated always check with the local building departments first).
Building Permits - Do I need one?
As a general rule, the answer is YES - any construction work that is regulated by adopted Building Codes and Fire and Public Safety Regulations requires a permit before work can begin.
Permit Requirements - It is not surprising that many property owners, including condo unit owners, are not familiar with local building codes. Many property owners think that it is the contractor’s responsibility to make sure a building permit has been obtained. This is not true. The property owner is held responsible for obtaining the building permit.
The building code is not another red-tape nuisance. There are good, sound reasons for having these regulations. First and foremost, the building code protects YOU! It ensures that the completed work meets specific quality standards that will protect you and your neighbors.
Sometimes a contractor may try to skirt the building permit requirement. If the code inspector finds the work in progress without the required permit, the property owner is cited (and not the contractor) for having work done without a permit. This can result in double fees for the permit and/or fines for having work done without a permit.
The Cities/Areas of Florida requires building permits for the following reasons:
The State of Florida requires standards of construction for all properties in the State. On a barrier island, those standards are even higher than those parts of Florida not as critically exposed to tropical storms. The State relies on local government to enforce these regulations.
Construction projects that involve outside work require compliance with zoning regulations that include proper property line setbacks, adherence to land use designations and clearance for utility infrastructure and right-of-ways.
Work that must be done by licensed professionals with insurance coverage to protect you and your neighbors.
(Improperly completed work can result in damage to your property and that of your neighbors)
• Air conditioning / heat system change outs Piers
• Balcony restoration Pilings and posts
• Boathouses and boatlifts Plumbing (movement or replacement of fixtures or pipes)
• Commercial floor plan alterations Pool construction, renovation or re-surfacing
• Concrete slabs, patios & gazebos Roof repairs and re-roofing
• Decks Screen enclosures
• Demolition work of any kind Seawalls (construction or repairs)
• Docks - new, repair or replacement Sheds
• Dredge and fill projects Siding
• Driveways and curb cuts Signs and signage (temporary or permanent)
• ALL Electrical work Soffits (new and replacement)
• Facia work Solar heating systems
• Fences and fencing (new and replacements) Structural alterations or repairs of any kind
• Fire alarms and sprinkler systems Tents
• Handrails - external (new and replacements) Water heaters (new or replacement)
• Hurricane shutters Water wells
• Paneling, wall and floor coverings Window replacements
This list covers the more common projects - it does not cover all activities that require permits. It is advisable to call the Building Department before starting your work if you are not certain if a permit is required. Remember: Reputable contractors know which jobs require permits in their area and they then obtain the permits as required.
When application is made for a building permit, the City checks to make sure the contractor is properly licensed and that the work is done by a licensed professional with the required liability insurance. When the work is completed, a building inspector from the city then inspects the completed job to make sure it was done properly and complies with the city code. This protects you! These requirements protect you and your neighbors from shoddy work that may result in later damage (fire, leaks and blowing debris, e.g.)
So next time you consider having work done on your property, please call the City first to find out if a permit is required and then make sure the contractor gets the building permit before work begins.
Frequently Asked Questions
• How much does a Building Permit cost?
The cost of the permit depends on the type of work to be done and the cost of the project to be completed. All permit fees are regulated by and specified in the City Code of Ordinances.
• Will my contractor obtain the permit?
The reputable contractors know the requirements and abide by them. Unfortunately, not all contractors comply with the City code. Remember, it is the property owner who is responsible for ensuring that all work on his/her property is preceded by acquisition of the appropriate permits.
• How do I find out if my contractor is licensed?
State law requires that all construction work be done by a licensed contractor. Residents are discouraged from hiring unlicensed contractors. Both the unlicensed contractor and the owner who ordered the work may be subject to severe fines and penalties. Call the local Building Department to verify a contractor's status before you sign a contract for repairs or construction work.
• What else should I ask a proposed contractor about?
To protect yourself from a lawsuit, verify that the contractor has adequate workers compensation and general liability insurance coverage. The City requires contractors to file proof of such insurance coverage before any work can begin.
• Is the contractor required to get any other permits?
Contractors are required to obtain occupational permits in order to solicit or perform any type of construction work in the City. The City will not issue the permit unless the contractor first provides proof of the appropriate insurance coverage.
• What happens if I get caught doing work without a building permit?
Minimally, the building inspector will issue a "cease work" order until you obtain the proper building permit. The minimum penalty for doing work without a permit is that you will be charged twice the normal fee for the building permit for the type of work you are having done. If the work being done is in violation of the building codes or the zoning regulations, the work must be changed to comply or else the work must be undone. Matters of non-compliance are referred to a City's Code Enforcement Board which has the authority to review the case and impose fines up to $250 per day or more until compliance is achieved.
The building codes are meant to protect you by ensuring work meets defined quality standards. The building permit fee includes a review of the work plans by a professional building inspector employed by the City and in many cases, a field inspection of the work by the building inspector.
In conclusion, play it safe and do it right. This will certainly help you in the Insurance area also---The extra structural costs for doing it better really pay off if a storm hits and or you decide to sell.
Link to Florida building code information
http://www.floridabuilding.org/bc/default.asp
Link to the Florida 2004 building code draft
http://www2.iccsafe.org/florida_building_code/
Saturday, December 17, 2005
Florida Investments
Florida Investments
Because of the fast growing base of people relocating to Florida along with the tourism industry, Florida offers three unique opportunities for investments.
• 1031 tax exchanges
• Buying a second home/condo and using it as a rental.
• Buying a commercial piece of property, from duplexes to apartments, to triple net shopping malls.
The above combined with an above average appreciation rate for Real Estate make Florida a place you definitely need to consider, regardless of your financial capabilities.
Due to our tourist industry both from the USA and abroad, rentals can be the answer.
If you’re selling a multifamily unit (Duplexes etc) a condo or single family home and looking to possibly buy one here, Florida can be just the ticket.
RENTALS/Vacation homes and Condo’s
Once you’ve zeroed in on an area, depending on you payback requirements , you’ll need to determine if zoning allows rentals on a weekly, monthly or long-term basis.
*This is an evolving situation depending on the community, so you really need to do your homework on this one.
Generally, short-term rentals are allowed only in commercial/residential zoned areas and are restricted in strictly residential neighborhoods.
I suggest that once you find the area you’re interested in, search the investment section of the site for a REALTOR that specializes in 1031 exchanges. (See the Real Estate links for the area you are interested in)
Second family homes
Looking to buy something and rent it out to help make the payments and then possibly retire to it later? Florida has something to fit your tastes and financial capability.
Because of tourism and the influx of people moving into the state (job transfers-military transfers or just plain people relocating) oftentimes they want to rent before buying.
In addition, don’t forget appreciation. Florida is one of the leading states in property appreciation. People want to be here.
Commercial properties and Existing businesses
There are Hotels. Marinas, mfg facilities, retail operations, mom and pop motels, bed and breakfasts, restaurants, shopping malls (big and small) available. Regardless of the lifestyle and skills you bring, there is a business here for you.
New businesses
Because we are growing rapidly, there is always a need for a new business, be it a retail operation a shopping center, apartments or homes.
Florida is home to thousands of small businesses. In fact they are one of the largest employers in the country.
In conclusion if you’re interested in changing your lifestyle or just continuing what you know in a better location and climate, you need to really check Florida out.
Because of the fast growing base of people relocating to Florida along with the tourism industry, Florida offers three unique opportunities for investments.
• 1031 tax exchanges
• Buying a second home/condo and using it as a rental.
• Buying a commercial piece of property, from duplexes to apartments, to triple net shopping malls.
The above combined with an above average appreciation rate for Real Estate make Florida a place you definitely need to consider, regardless of your financial capabilities.
Due to our tourist industry both from the USA and abroad, rentals can be the answer.
If you’re selling a multifamily unit (Duplexes etc) a condo or single family home and looking to possibly buy one here, Florida can be just the ticket.
RENTALS/Vacation homes and Condo’s
Once you’ve zeroed in on an area, depending on you payback requirements , you’ll need to determine if zoning allows rentals on a weekly, monthly or long-term basis.
*This is an evolving situation depending on the community, so you really need to do your homework on this one.
Generally, short-term rentals are allowed only in commercial/residential zoned areas and are restricted in strictly residential neighborhoods.
I suggest that once you find the area you’re interested in, search the investment section of the site for a REALTOR that specializes in 1031 exchanges. (See the Real Estate links for the area you are interested in)
Second family homes
Looking to buy something and rent it out to help make the payments and then possibly retire to it later? Florida has something to fit your tastes and financial capability.
Because of tourism and the influx of people moving into the state (job transfers-military transfers or just plain people relocating) oftentimes they want to rent before buying.
In addition, don’t forget appreciation. Florida is one of the leading states in property appreciation. People want to be here.
Commercial properties and Existing businesses
There are Hotels. Marinas, mfg facilities, retail operations, mom and pop motels, bed and breakfasts, restaurants, shopping malls (big and small) available. Regardless of the lifestyle and skills you bring, there is a business here for you.
New businesses
Because we are growing rapidly, there is always a need for a new business, be it a retail operation a shopping center, apartments or homes.
Florida is home to thousands of small businesses. In fact they are one of the largest employers in the country.
In conclusion if you’re interested in changing your lifestyle or just continuing what you know in a better location and climate, you need to really check Florida out.
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