2 BUYING YOUR PROPERTY
via an agent, bear in mind that an agent may have his own agenda – and be pushing properties from a specifi c bank he has links with, for example – so do your own research on a property. Going back to location, is the property
genuinely close to the coast (if that is what it is promoted as being), and is it on a healthy and well-established development? Who else is buying on the development, are
many of the properties empty – or, worse, never been lived in? If the bulk of the properties on a development
aren’t occupied you may have problems with unpaid community fees which will lead to problems with the upkeep of common areas (another danger sign to look out for). All these things make a visit to the property
yourself essential; you won’t be able to ascertain its genuine condition – or that of its surroundings – without it. Your lawyer should investigate thoroughly if a
property has any debts, including utility debts, as banks may not have time to keep on top of the management of their hefty portfolios. If you are tempted by buying something at
auction, again, it is also essential that you inspect it yourself and get full legal checks done on its background. You must also have completed all the research you need to make an educated decision about your maximum bid on the day of the auction.
What have neighbouring properties been selling for? What is its rental potential? How much is it going to cost to get into good shape? Needless to say, your fi nance should also be
in place beforehand, and if you have any doubts on the day, walk away. If you are thinking of buying in Florida, many
of the pieces of advice above will be just as relevant, with particular caution urged when buying on condominium complexes. Although some parts of the Florida market are
fast-recovering, there are still a lot of short sales around which require extra caution and expert help. These are properties in negative equity, being sold off cheaply by the agent/lender to prevent it going into “foreclosure” (being repossessed). Many agents steer clear of dealing with short
sales for the simple reason they can be too problematic and time-consuming. So bear this in mind – it is not the easiest arrangement for a buyer based across the Atlantic and unfamiliar with the workings of American agents and banks. Short sales take an average of three months to complete, so you need patience and good legal advice to make all those background checks. Foreclosed properties can also have their own
problems, often based on the fact they would have remained unoccupied for a period of time, potentially leading to all sorts of issues of neglect or dampness where humidity is a factor.
BARGAIN.. HUNTERS... BEWARE..
A cheap price
doesn’t always mean a great deal. Forget the numbers and ask all the usual questions about location, access and rentability.
If it sounds too good to be true, it probably is. Why hasn’t it been snapped up by someone else? If you had to sell it on in six months, could you be sure that someone else would want it (ie does it tick lots of boxes)? Don’t scrimp
on thorough legal advice and checks. Bank owned
properties should be treated with extra caution - get expert advice.
AIPP CONSUMER GUIDE 21
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