When it comes to buying Miami Beach real estate, many first-time buyers often want to start by seeing as many properties as possible immediately. While this is the most fun part of buying a property, it’s not necessarily the best first step to a successful transaction.
The best way to start off the buying process is to first speak to an experienced agent and get a good idea about the type of property you can buy as well as the neighborhood that will best fit your criteria and budget. Also, if you need financing, you need to speak to a qualified local lender in advance to looking a property. Once you have these two initial projects completed, the next step is previewing property.
First Time Buyer Tips for Buying Miami Beach Real Estate
1. Hire an experienced buyer’s agent.
It is customary in our area for a buyer to have their own agent, one who is working for the buyer.
2. Complete a buyer’s consultation.
Meet online, via conference call or in person for a buyer’s consultation. When we start working with new buyers, our first step is to meet for a buyer’s consultation. This is key and allows us to create a strong gameplan for your purchase and needs.
3. Determine how you will pay for the property.
At this time, our market is a heavy cash market, especially for condos. If you need financing, you need to speak to a qualified lender and start the application process. It’s important because they will calculate all of your monthly expenses and put your financial situation for buying into a very realistic perspective. It’s also important to remember that down payments for condos are much more than in the past, it’s pretty common to put down 20 to 30% with financing (for US citizens), for foreign nationals it can be around 45%. All of these numbers and figures need to be taken into consideration. Also, if you find a property you like, you will need to submit a pre-approval letter with the offer and this can take some time to prepare.
If you are buying with cash, you need to be sure that you have a letter from your bank to demonstrate proof of funds. Some of our cash buyers are not in the US and these funds need to be transferred to a US bank so that they are available to show proof of payment and use when deposits are required with an offer. If this isn’t managed in advance, you can miss a good buying opportunity.
4. It’s important to think about other outside expenses.
In addition to your monthly payment, you will have other fees like: monthly maintenance, tax and insurance.
5. Who’s name will the property be in?
Some of our clients set up a special legal structure for purchasing property in Miami. You will need to speak to an attorney about this in advance. Often many of our contracts don’t allow buyers to assign to a different party prior to closing so it’s important to organize in advance.
6. It’s good to write up a list of things you’ll need, would like to have, or don’t wish to see.
For instance no square footage less than “X” amount.
Deeded or assigned parking a must? Street parking okay?
7. It’s crucial to ensure that your expectations are realistic.
If you’re on a strict budget and have a desire to live in a popular Miami neighborhood, then you may have to go with a smaller residence or choose to move to a different place in order to get a larger-sized one.
There are many more details I could cover here but this is a good jump start to help you start thinking about first-time buyer tips for buying Miami Beach real estate. Here is another popular blog post I did for buyers:
45 TIPS FOR BUYING A MIAMI BEACH CONDO
If you have questions or comments about these tips for buying a home, please call us at 305-793-8965 or leave a comment below.
We’d love to hear from you.
