Need advice on buying condo in Florida

[pb4uski]

Update.... we finally came to terms with the seller yesterday and are now working on a P&S agreement. Since it was an FSBO we ended up splitting the benefit of no agent commission. In fact, I think I did a bit better but it is hard to tell given variability in the sales comparables over the last 15 months.

What is customary for an earnest money deposit?

I talked with a friend who owns in the same association and the association is sound but I will be looking at financials as well. We plan to have an inspection and hire an attorney to handle the title search and closing.

I'll have to sell some stocks that I have sort of been wanting to sell anyway to simplify our portfolio. We'll have a nice gain but will not pay any federal capital gains tax but it will reduce what I can do for Roth conversion for 2016 in half.

We'll probably defer becoming FL residents until we are on Medicare in 5 years as health insurance is much more than any state income tax savings we would benefit from.

 

[jabbahop]

Congrats PB! I am looking forward to escaping the Vermont winters once the kids are off to college in 2018.


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[braumeister]

What is customary for an earnest money deposit?

Around here it's $1,000.

Good luck!

 

[MichaelB]

Update.... we finally came to terms with the seller yesterday and are now working on a P&S agreement. Since it was an FSBO we ended up splitting the benefit of no agent commission. In fact, I think I did a bit better but it is hard to tell given variability in the sales comparables over the last 15 months.

Another snowbird ..

Around here it's $1,000.

That's what I'd offer

 

[pb4uski]

Another snowbird .. ....

Yeah, that's the rub though.... we'll be writing out a big check and paying monthly expenses but don't plan to use it for other than a couple days between now and next fall.... but the annual expenses are less than what we would pay to continue to rent so we'll come out ok.

 

[Dash man]

We closed on our ocean front condo at the end of March. Starting moving in last Friday and awaiting furniture deliveries and some plumbing repairs scheduled for this week. All windows have ocean views and the neighbors are great. We made a good decision. Some updating is required but nothing is so bad it has to be done immediately, though wallpaper removal has taken top priority so we can paint on our next trip down. If I didn't have doctor's appointments up in PA next week, I may never leave.

We were asked for a 10% deposit, but we just laughed and put $15K down to show we were serious and wanted a quick closing. We've had $3k held in escrow to cover needed repairs, but they'll get half of it back pretty soon.


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[pb4uski]

Congrats PB! I am looking forward to escaping the Vermont winters once the kids are off to college in 2018. ...

Yes, that was the main motivation and depending on how it appreciates in value we could well come out better than paying rent for 3-4 months even after considering opportunity costs.

I have long said that our beautiful Vermont summers were our dividend for putting up with the harsh winters, but now I can get the dividend without owning the stock! Doesn't get much better than that.

 

[pb4uski]

We closed on our ocean front condo at the end of March. Starting moving in last Friday and awaiting furniture deliveries and some plumbing repairs scheduled for this week. All windows have ocean views and the neighbors are great. We made a good decision. Some updating is required but nothing is so bad it has to be done immediately...

That sounds wonderful. Oceanfront wasn't in the budget but we are 30-40 minutes to a number of nice beaches.

We're in the same boat... we can move in and use it immediately but some updating would be nice. Luckily I'm pretty handy so I can do a lot of the simple stuff myself.

 

[pb4uski]

Another question: In a FSBO transaction with no financing contingency (all cash deal) how long should it take to close? Is 30 days reasonably possible?

 

[MichaelB]

Yeah, that's the rub though.... we'll be writing out a big check and paying monthly expenses but don't plan to use it for other than a couple days between now and next fall.... but the annual expenses are less than what we would pay to continue to rent so we'll come out ok.

Come down more often. As you visit more frequently, the cost per trip declines, so you are actually saving money.

Another question: In a FSBO transaction with no financing contingency (all cash deal) how long should it take to close? Is 30 days reasonably possible?

Now it's all up to the seller. Are they ready to move? That's really the critical thing now.

 

[ivinsfan]

Another question: In a FSBO transaction with no financing contingency (all cash deal) how long should it take to close? Is 30 days reasonably possible?

Are you in a hurry, as long as you have it by next winter you are happy correct. You will have a few less bills to pay in a slower closing.

 

[pb4uski]

Seller is ready to move as far as I know... they rent it and are selling it turn-key so the only thing they need to do is remove a few personal items that they said they want to take.

Good point on the bills. While I know that I don't have to attend the closing it just doesn't fell right to not attend and inspect the property until I arrive 6 months later so I planned to fly down for the closing and a few days of vacation. Since I feel compelled to attend I planned to try to time it with my 85 yo Mom flying back north so she doesn't have to fly alone (though she does it all the time).

Perhaps I'm overthinking it.

 

[braumeister]

In my experience, the only time-consuming item is how long the title company takes to do its title search. BTW, I highly recommend buying title insurance if you haven't already arranged for that.

 

[pb4uski]

I do plan to buy title insurance.... in fact the title insurance premium is about 2/3rds of our closing costs. Though I have to admit it is difficult to see much likelihood of title problems for a condo that was developed and first sold in 1989.

Around here a title search only takes a day unless there are complications.... which is rare.