The Importance of Being Educated…

Purchasing property in South West Florida is an exciting event! For many folks it’s a dream come true, a reward for years of hard work.  Enjoying the tremendous variety of cultural and entertainment opportunities or just relaxing in the wonderful sunshine, it’s hard to beat. There is one thing, however, that can put a real damper on this event and that is a last minute surprise when it comes to the actual cost of living in your new home. Our area is made up of several hundred gated communities, all with their own rules, regulations and fees. The rules and regulations are for the benefit of the residents and in most cases are approved by the Board members who are also home owners. The fees vary greatly and there are some that are not so obvious.

What you need to know: First and foremost, be sure you get a copy of the association budget. Your Realtor should review this with you carefully to be sure the association is “healthy.” When was the last assessment? How large are the reserves? Are there any major expenses foreseen and, if so, is there enough money in the reserves to cover them? If you’re purchasing a unit in a high rise you’ll find the fees to be considerable as they cover insurance on the building, and if you’re near the Gulf, those premiums are high. How old is the building? When were the windows replaced? New codes call for reinforcements that are very costly and if there is not enough money in the reserves, the association has the right to assess the condo owners.

The time to find out about all the fees is before you fall in love with a particular property. One of the first things I do for my clients is prepare a fee comparison sheet for them, showing them exactly what it will cost to live in one community compared to any others they might be considering. I include mandatory memberships,  transfer fees, ad valorem fees, and any assessments that are not evident. This is important information that you will not find online. Often someone will call me about a property they found online thinking it’s a real bargain – then I fill them in, it’s a bargain price because it is in a community that requires golf and country club membership and that equates to thousands of dollars in annual fees. The deal doesn’t look quite as good then.

It’s important to know all the details before you get too invested in a property. Make sure you use an educated Realtor who can properly represent your interests from start to finish and you’ll be able to truly enjoy your new purchase knowing there will be no surprises!

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