Looking To Buy Real Estate in Sarasota? Avoid the Pitfalls in 8 Easy Steps

Buyers coming from both the US and from other countries understandably have a fair amount of apprehension about buying real estate in Sarasota or Florida in general, especially if they do not know the process. Whether you are a US Citizen or a global buyer, the process is nearly the same.

For global buyers, there are a few more considerations surrounding the movement of money, perhaps, but that’s about all. If the buyer is a cash buyer then these minor complications are reduced. If the deal is to be financed there are a few more hoops to jump through.

But overall the process of purchasing real estate in Sarasota is as simple and straightforward as any home purchase in the US. It just requires a real estate agent who is a good steward of the process and has experience making sure all the due processes are observed speedily and efficiently.

Need help deciding where to buy in Sarasota? Learn about the unique places to live in Sarasota.

Buying Real Estate in Sarasota: Step One – Engage a Realtor

We’ve written at length, and constantly advise our readers, that hiring a Realtor to represent them is the most important decision they will make (other than the house) when buying real estate in Sarasota.

It does not cost you anything as a buyer to use a Realtor as the commission is paid by the proceeds of the Seller at the time of closing. The right expert will ensure you have every bit of information at your fingertips as you begin your search, and steer you through every possible aspect of the property purchase process.

Step Two: Showings and Open Houses — A Great Place to Begin

Once you have decided on a Realtor, showings and open houses are a great place to start your property search.

Open houses, we’ve been told, are not common in some European countries so it’s probably a good idea to explain them here.

In addition to giving you a good perspective on what is available in the market at what price point, open houses offer an opportunity for you, as a buyer, to meet and interview potential Realtors.

Some real estate Realtors hold a listing open so that members of the public can come and view the house. Agents’ opinions on the effectiveness of holding a house open to attract potential buyers are mixed. Some find that open houses can attract people not really interested in buying, only “lookers” who are curious to see the inside of the house.

In our opinion there can’t be any harm in getting some exposure for a listing. As a buyer, open houses offer a good opportunity to get a feel for the market, really understand what you can afford, and to compare properties in your price range.

Once you have found a Realtor that’s going to do a great job for you, you should continue to look at open houses for your own education. However, as a professional courtesy and to be sure that your best interests will be served, you should let other Realtors who are hosting open houses know that you’re working with a buyer’s agent on a purchase. You may be pleasantly surprised to learn they’ll answer questions more candidly, and with greater detail, once they know this, as they will take you more seriously as a buyer.

When you are interested in seeing specific properties your Realtor will make the showing appointments. Usually, the owners of the house are out while you’re shown the property.

Sometimes the seller’s agent will be present to answer your questions about the property and give you more information. Your Realtor should also be fairly well informed and have done their homework on the property.

If the seller’s agent isn’t present they should leave you a listing sheet with all the property’s details. Make sure you make notes of all the things you like, all the things you don’t, and all the things you need further information on.

Step Three: Mortgage Pre-approval – The Next Step in Securing Your Dream Home

The other key step in buying Sarasota real estate is of course having financing in place if you need it. Before you start your property hunt in earnest it’s a really good idea to get pre-approved for a mortgage, just in case you see something you really like.

Without pre-approval you’ll most certainly not be the seller’s first choice should there be several offers, and you won’t really know for sure that you can even afford the property, or get a mortgage.

Please note: pre-qualified is not the same thing as pre-approved. Pre-qualified means you’ve given a lender your income details and financial commitments and they’ve estimated what you can afford.

Pre-approved means they’ve actually checked your credit report, your debt to income ratio, and properly analyzed your financial situation. Once they’ve done this you’re given a pre-approval letter.

This can certainly help in sealing the deal when in negotiations with a seller and indicates that there’s a really good chance you will get a mortgage and the sale will go through.

Step Four: Making a Serious Offer

Once you’ve found the right property, read through the Seller’s Disclosure, and are ready to make a move on it, it’s time to make an offer. In Florida, this is done with a formal contract that lays out the specific requirements and terms on the part of the buyer and seller.

Some Realtors may approach the seller’s Realtor first with an oral offer, to see how the other party responds before they take the time to put anything in writing. We strongly encourage all offers to be presented in writing from the beginning. Offers that come in writing are generally more seriously considered by virtue of the fact that the terms are in writing.

What is a Seller’s Disclosure?

In Florida, it is the homeowner’s responsibility to disclose any issues or material defects not readily visible or known to a Buyer. Your Realtor typically obtains the Seller’s Disclosure form from the Seller’s real estate agent before constructing an offer. This information is critical as it will help you to see if there are any details about the condition of the property that may affect the value you want to offer.

Please see this link for an example of a Florida Association of Realtors Seller’s Disclosure Form as a PDF.

Step Five: The Purchase Contract and What It Should Include

Realtors Primarily Work with One of Two Types of Contracts

1. The Florida Realtors/Florida Bar Residential Contract for Sale and Purchase

The standard contract provides that if there are issues uncovered during the inspection with warranted items — i.e. items that affect the integrity of the property, such as a broken roof tile which could lead to a roof leak — the seller is obligated to make repairs of the warranted items (up to a limit agreed upon during the negotiation of the contract).

The standard contract, if not otherwise specified, provides a default of 1.5 percent of the purchase price for repairs. Non- warranted items refer to cosmetic issues, such as discoloration of floor coverings, wallpaper, or window treatments.

To see the most recent version of this contract, and to read the exact verbiage defining warranted and non-warranted items, click here for a PDF download.

1. The Florida Realtors/Florida Bar “As-is” Residential Contract for Sale and Purchase

Typically bank-owned, investor-owned, estate sales, or older homes will be marketed and sold “As-is”. This means that should the inspection report reveal issues with the house, the seller is not obligated under the contract to make those repairs.

While the perception is that once the seller agrees to a buyer’s purchase price they will have no further responsibility for the property, our experience dictates that this is not the reality.

In many situations, we actually prefer using the “As-is” contract with our buyers as we believe it protects them more fully should they decide they do not want to proceed with the purchase for any reason during the due diligence process.

There are two primary reasons we prefer to work with an “As-is” contract:

• First, this is the only contract that allows the buyer to receive a full refund of the deposit should they determine that the property is not right for them.
• Second, the seller will most likely agree to make repairs that any subsequent buyer is likely to find an issue with as well.
• As an example, if a house has a termite problem, the seller will likely take action to resolve it, as nearly any future buyer would not proceed with a purchase with the knowledge that an active infestation exists.

Should anything major about the house be revealed during the due diligence period, it will not only be a concern for you but for almost every other buyer as well. So the onus is pushed back to the seller — although they are not obligated to do anything under the terms of the contract — to make the needed repairs or reduce the purchase price accordingly as the problem is not going to disappear and their goal is to sell.

The purchase contract should be drawn up by your Realtor with all the details and signed by you. In many cases, buyers are asked to put up “earnest money” which is a small amount of the deposit, to demonstrate that you are serious about the purchase. Do bear in mind, if your offer is accepted and you then later pull out of the deal without the necessary provisions in the contract, you’ll forfeit that money.

Here’s What the Contract Should Include:

• The price you’re offering for the property
• The percentage or value of the earnest money you will put down. Just as a rule of thumb, many sellers like to see 10% put down for the total deposit. This may take the form of the initial earnest money deposit upfront (within three days usually), and the remainder of the deposit usually is due within ten days of signing, or sometimes at the end of the due diligence period
• Response time to the offer by the seller. The contract should set out in writing the date and time by which you expect a response to the offer. This ensures all parties have a clear idea of how long the offer is valid and helps to keep things moving along or have a definitive end point
• Proposed closing date. In Florida, the majority of closings occur within 30 to 45 days of going to contract. This can vary greatly, however, depending on specific circumstances
• Number of days allotted for due diligence. The default amount in the standard contracts is 15 days
• Repair limits. This is applicable if you’re not using an “as-is” contract
• Financing contingency and time frame. These should be included to protect yourself if you don’t get the mortgage deal you’d hoped for. It should be stated in the contract that the sale will only go through if your mortgage gets approved, and specify the maximum interest, and terms of the mortgage that are acceptable to you
• Inventory of items included in the purchase. Typically, major appliances stay with the property, unless otherwise specified, including fridges, sinks, stoves, microwaves, and often the washer and dryer. It is important to be sure this is clearly spelled out, though, as we have had the experience of very large transactions becoming contentious over these relatively small things.

Obviously, the seller doesn’t have to accept the offer, even if you offer the full price of the listing. And sellers are under no obligation to explain why they reject a particular offer.

Usually, we find most buyers hear back within a day or so, and in most cases, the seller will let you know if the offer was too low, which is where the negotiation begins! You can bide your time at this point and gamble on seeing what happens, or increase your offer hoping to secure the property immediately.

Step Six: Offer Acceptance and Due Diligence – The Devil is in the Details

The minute you learn your offer has been accepted ranks up there as one of life’s most exciting moments. It is important to keep grounded, however, in the fact that there are still many steps in the due diligence stage that may uncover issues or problems on either side. As with much in life, when it comes to real estate deals, the devil is in the details.

After your offer is accepted, if you haven’t already put down earnest money you will be expected to do so on the signing of the contract. Always be aware that earnest money could be at risk if the seller does what he or she is required to by contract and you do not.

Depending on how the terms were set out in the contract, usually within the first few days after execution of the contract, you’ll put down the remaining deposit for the property.

Then it’s time to begin checking off the contingencies set out in your contract, which is where the skill of your Realtor and the quality of the team he or she’s assembled becomes paramount, beginning with the home inspection.

Step Seven: The Home Inspection – Making Sure It Isn’t a Lemon

An inspection checks the condition of the house itself. Even with a brand new house inspections are critical. With new homes, there is usually a guarantee against anything that is wrong, so it may turn out to be really beneficial to get an inspection done.

If the “As-Is” contract is in place, the buyer’s decision to move forward will usually be contingent on the inspection being satisfactory. If the inspection is not satisfactory, the buyer may want to pull out, or some negotiation may be required between buyer and seller to find a solution both are comfortable with.

Some things may need to be fixed, but really the main purpose is to provide an outline of the state of the house so the buyer understands what they’re buying. There are so many issues that can hide in houses, and even if they’re not deal-breakers you need to know what potential costs or issues you’re taking on.

We feel it is important to set the expectation that no house is perfect, even brand new homes, and it is quite normal for there to be in the range of $1000-$2000 worth of work needed. Again, if these are material defects then they will generally be covered by the seller if the standard purchase contract is being used.

Your Realtor should be able to provide you with choices for experienced, professional inspectors and have a preferred inspector they can personally recommend as an exemplary professional. It’s important to make sure that the person who performs the inspection is truly independent and able to provide unbiased, objective information about the condition of the house.

Your inspector should be certified by the American Society of Home Inspectors. Please see our article on Professionals You Need and What They Do for more on this.

Here are the major areas the inspector will cover:

FOUNDATION

Checking if the foundation is sound. If there is a crawl space or basement they will check for signs of water damage, cracks that could indicate structural issues, and moisture.

CONSTRUCTION

The inspector will check if the property is well-constructed or not. While 90 percent of homes in the U.S. are made of wood, many homes in Florida are of concrete block construction. In a wooden home, they will check if the wood is in good condition, with flashing to protect it. In a concrete block home, they will check the quality of the construction, and that the blocks are not degrading. The condition of the roof, as well as windows and any other woodwork, exterior cladding, and guttering, will also be checked.

PLUMBING

The inspection will check if the plumbing is fully functional if there is evidence of leaks, and if all the pipework is in good shape. For houses with wells and septic tanks, the inspection should include these as well.

HEATING AND COOLING SYSTEMS

The inspection will check the condition of the units, how soon they will need replacing, and check the temperature differential to see that the system is operating correctly. In some cases, we may recommend that a specialist in heating and cooling do a separate inspection. For example, when there are multiple cooling systems in a home or there are signs that something is amiss.

ELECTRICAL

Check for any electrical problems or issues, and flag any wiring that may need replacing. Identify any potential safety hazards.

INTERIOR

The inspection will check that floors are level, uncover any mildew concerns, and any drywall or finishing issues on the inside of the property, examine windows and doors, and touch most things that move, open, and close on the inside of the home.

The cost of an inspection in Sarasota, FL usually ranges from $400 to $500. Please see this link for a PDF example of a home inspection report from a firm we regularly work with.

PEST INSPECTION

We always recommend that our clients have a pest inspection done when buying a property, for peace of mind. An average pest inspection costs $30-$50. In Sarasota and Florida in general, these inspections check for Wood Destroying Organisms (commonly referred to as termites), rodent infestations, and also scope out areas that can be sealed to prevent any rodents from gaining access to a home in the future.

If termites are found they need to be treated by a pest expert. To those who are unfamiliar, this might seem like an overwhelming issue, but in fact, the problem is not uncommon in Sarasota and there are well-defined solutions. Termite inspectors make a joke — there are two types of houses…those that have termites and those that will get termites. 😄

If the inspector finds any rodents inhabiting the property, they are typically removed through traps.

How Inspections Play into Insuring your Property

With any house, you buy it’s important to remember that the condition of the house will affect the insurance premiums too. In order to get the most accurate insurance quotes, you must first have the completed inspection report.

Insurance rates tend to be higher in Florida than in other places in the world. As soon as the inspection report is ready it is important to share it with the insurance agent because insurance premiums (the annual amount charged to insure the property) are set based on a combination of factors.

The subset of the inspection reports that will be helpful to your insurance agent will be a four-point inspection (specifically roof, electric, plumbing, and cooling/heating systems) and the wind mitigation inspection. Other aspects of the home that will likely play a role in the insurance rates will be the home’s current condition, age, the cost to rebuild with the current finish, quality of materials, ceiling heights, etc. The proximity of the house to the water and a fire station may also play a factor.

If you are using the standard purchase contract, we would recommend an insurance addendum, so that if you get insurance quotes that may be beyond your budget or willingness to pay, you have another protection as the buyer to legally get out of the contract and get a return of your deposit. Another reason we like working with the “As-Is” contract is that no additional addendum is required. As long as you give notice during the due diligence period you can exit the contract for any reason and get a full return of the deposit.

Step Eight: The Closing

You will attend a closing meeting (or your Realtor will go in your stead) with a closing agent or a real estate attorney.

Here, you will go through and sign all the paperwork necessary to finish the deal. Your Realtor or lawyer should review all of the documents to ensure that everything is as it should be as you go along.

Then funds will be transferred from escrow and you will get your keys. Congratulations, you’re a Sarasota homeowner!

In our conversations with new clients and friends we meet when we’re working in Europe and the UK, we often find there is some apprehension about the process when buying a home in Sarasota or in Florida in general, as for many people it’s a complete unknown. Happily, we’re able to reassure everyone we talk to because the process is actually incredibly transparent, simple, and easy – when compared with a lot of European countries.

Additionally, buyers from the UK give a sigh of relief when they realize that the dreaded ‘gazumping’ cannot happen in a real estate transaction in Sarasota. Once an offer is accepted here money is put down, and unless something comes up in due diligence which causes the contract to be broken, you can be confident the sale will be proceeding. For a lot of Brits this is the opposite from buying in the UK, when you can only be confident of the purchase when you have the keys in your hands on move-in day!

To help clarify just exactly what’s involved in the sale process we’ve put together this guide to buying Sarasota home, to really demonstrate how simple it is. For a more in-depth explanation of every single part of the process, from finding a property to renting it out, please check out our book Your Guide to Florida Property Investment for Global Buyers.

Guide to Buying Property in Sarasota

Step 1 – Engage a Realtor in Sarasota

We’ve written at length, and constantly advise our readers, that hiring a Realtor to represent them is the most important decision they will make (other than the house) when buying Sarasota real estate. Read more about how the right Realtor will smooth the process, and how it costs you nothing as a buyer here. But trust us, this is the important first step. The right expert will ensure you have every bit of information at your fingertips as you begin your search, and steer you through every possible aspect of the house or condo purchase process.

Step 2 – Find a Property

Begin your search. Prices are rising steadily, and the deal you could get today, won’t necessarily be as well priced tomorrow. Your Realtor has access to the MLS (Multiple Listings Service) and will be actively using their expertise to find listings that suit your criteria and lifestyle goals, but you can also get proactive searching online.

The more you look at, the more informed you are about price points and what’s really in your budget. When searching online be prepared to listen to your Realtor’s feedback and advice on neighborhood and streets though, as he or she is the expert on the ground and has the experience to know if something is too good to be true, overpriced or not the right location for your needs. Your Realtor’s local knowledge will be priceless in assisting you on this part of your journey.

Once you’ve found some listings which may work for you, we highly recommend making the trip to check them out in person. On the ground in Sarasota, you have the option of attending open houses, or your Realtor can book showing appointments with the listing Realtor on your behalf. If you really can’t make it to Sarasota, then it’s even more imperative that your Realtor is of the highest standard and has impeccable local knowledge and market info!

Step 3 – Mortgage Pre-approval (If you are paying cash, move-on to Step 4)

The other key step in buying a home is of course having financing in place if you need it. Before you start your property hunt in earnest it’s a really good idea to get pre-approved for a mortgage, just in case you see something you really like. Without pre-approval you’ll most certainly not be the seller’s first choice should there be several offers, and you won’t really know for sure that you can even afford the home, or get a mortgage.

Please note: pre-qualified is not the same thing as pre-approved. Pre-qualified means you’ve given a lender your income details and financial commitments and they’ve estimated what you can afford. Pre-approved means they’ve actually checked your credit report, and your debt to income ratio, and properly analyzed your financial situation. Once they’ve done this you’re given a pre-approval letter. This can certainly help in sealing the deal when in negotiations with a seller, and indicates there’s a really good chance you will get a mortgage and the sale will go through.

Step 4 – Making an Offer

Once you’ve found the right house or condo and read through the Seller’s Disclosure (where the homeowner discloses any known issues with the property) it’s time to make an offer. In Florida, this is done with a formal contract that lays out the specific requirements and terms on the part of the buyer and seller.

Some Realtors may approach the seller’s Realtor first with an oral offer, to see how the other party responds before they take the time to put anything in writing. From our perspective, we strongly encourage all offers to be presented in writing from the beginning. Offers that come in writing are generally more seriously considered by virtue of the fact that the terms are in writing.

Obviously, the seller doesn’t have to accept the offer, even if you offer the full price of the listing. And sellers are under no obligation to explain why they reject a particular offer. Usually, we find most buyers hear back within a day or so, and in most cases, the seller will let you know if the offer was too low, which is where the negotiation begins! You can bide your time at this point and gamble on seeing what happens, or increase your offer hoping to secure the property immediately.

Step 5 – Offer Acceptance

The minute you learn your offer has been accepted ranks up there as one of life’s most exciting moments. It is important to keep grounded, however, in the fact that there are still many steps in the due diligence stage that may uncover issues or problems on either side. As with much in life, when it comes to real estate deals, the devil is in the details.

After your offer is accepted, if you haven’t already put down earnest money you will be expected to do so upon signing the contract. Always be aware that earnest money could be at risk if the seller does what he or she is required to by contract and you do not.

Depending on how the terms were set out in the contract, usually within the first few days after execution of the contract, you’ll put down the remaining deposit for the property. Then it’s time to begin checking off the contingencies set out in your contract, which is where the skill of your Realtor and the quality of the team he or she’s assembled becomes paramount.

Step 6 – Contracts

The purchase contract should be drawn up by your Realtor with all the details and signed by you. In many cases, buyers are asked to put up “earnest money” which is a small amount of the deposit, to demonstrate that you are serious about the purchase. Do bear in mind, that if your offer is accepted and you then later pull out of the deal without the necessary provisions in the contract, you’ll forfeit that money.

There are two main contracts in Florida property purchase. The standard contract provides that should problems be found with certain parts of the home during the inspection, the seller is obligated to fix them, and there is an allowance for these repairs accounting for up to 1.5% of the house price.

We prefer to work with the alternative “As-is” contract. With this type of contract if the inspection report reveals issues with the house the seller is not obligated to make those repairs. This means the buyer has more flexibility to pull out, should they decide the house is not for them, and this is the only contract that allows the buyer to receive a full refund of the deposit should they be unhappy with anything in the due diligence phase.

The contract includes:

• The price you’re offering
• The percentage or value of the earnest money (like a pre-deposit) you will put down, and the value of the full deposit due at the end of due diligence (Usually 10%)
• Response time to the offer by the seller
• Proposed closing date. In Florida the majority of closings occur within 30 to 45 days of going to
  contract. This can vary greatly, however, depending on specific circumstances
• Number of days allotted for due diligence. The default amount in the standard contracts is 15 days
• Repair limits. This is applicable if you’re not using an “as-is” contract
• Financing contingency and time frame. It should be stated in the contract that the sale will only go through if your mortgage gets approved, and specify the maximum interest, and terms of the mortgage that are acceptable to you
• Inventory of items included in the purchase.

Step 7 – Closing

You will attend a closing meeting (or your Realtor will go in your stead) with a closing agent or a real estate attorney. You’ll go through and sign all the paperwork, your Realtor or lawyer will check everything is as it should be as you go along. Then funds will be transferred from escrow and you will get your keys. Congratulations, you’re a Sarasota homeowner.😄

The Pros and Cons of Real Estate Types, so that You Don’t Make the Wrong Choice!

The type of property you choose as your future Sarasota home will be decided by several factors including whether it’s intended for a financial return or holiday home, your budget, and your personal wants/needs. As the types of homes available have different pros and cons, it’s useful to outline the most commonly found real estate types.

Types of Property Defined Like Never Before

Oceanfront, Gulf Front and Waterfront Real Estate

If you are in the position to pay the premiums demanded for Oceanfront (Atlantic Ocean side of Florida), Gulf Front (Gulf of Mexico side), beachfront, or waterfront property then do it!

Getting more house for your money off the water may be tempting, but being on the water is the surest way to guarantee you get the most amount of return for your money when re-selling. If your aim is to rent, waterfront also commands the highest rental returns.

A beachfront property will always be in demand as the sun-seekers, holiday-makers, and property buyers flock to beachfront locations to purchase a bit of the Sarasota good life.

However, waterfront living doesn’t begin and end with the beach — many of Sarasota’s houses and condos are located on canals, rivers, and bays, which offer specific and desirable niche markets for people searching for particular lifestyles: be that fishing, birding, boating, kayaking, or simply being close to the calming properties of the water.

These properties each offer different lifestyles for buyers and holidaymakers and present different niche markets for rental income.

Considerations to remember about waterfront real estate include that upkeep is significant and a cost to be factored in over and above what it regularly costs to maintain a home. Insurance can also be much higher for properties on the coast.

PROS

• WATER!! WATER!!! WATER!!
• Commands highest prices both for rental and resale
• Most desirable properties in the market generally
• More in demand

CONS

• Much more exterior maintenance and costs
• Higher insurance
• Can be nerve-wracking in storm/flood situations
• Maybe safety issues for children

Single Family Homes

If you can afford to choose a single family home for your investment or holiday home, you are making a wise use of your money as these homes tend to produce the highest appreciation over time and also the highest rental incomes.

The downsides with single-family homes include higher cost, higher upkeep costs, and more labor-intensive maintenance, especially pool homes. But the rewards are well worth it, especially if you intend to use the home with your family.

Note: even if your single family home is not within a Homeowners’ Association, there are still likely to be restrictions and rules in place concerning different issues which are often written into the deeds for the home. Your attorney or Realtor should look into these in detail as part of their due diligence on the property on your behalf.

PROS

• Privacy
• Usually good outdoor space
• Feeling of own home
• Usually more say over the appearance of the home
• Higher desirability for renting

CONS

• More maintenance than townhouses and condos
• Higher price than townhouses and condos
• Higher insurance

Condos

The bread and butter of the Sarasota real estate market, condos and especially new construction downtown condos are a great choice for investors. Not only are they somewhat plentifully available in most of the major areas, they tend to be more affordable, and much easier in terms of upkeep. This is beneficial for international buyers who will only be using the condominium themselves for part of the year, or not at all.

In addition to the perceived ease of ownership, condo living typically affords lower budget accessibility to areas such as beachfront and downtown locations, than the buyer would be able to afford in a single-family home. Since condos in the most desirable locations are vertical, the buyer is only paying a fraction of the actual land cost.

Condominiums are usually set up so that each owner owns his or her unit individually, and all the owners in the building have a share of ownership of the common spaces. A board of directors manages the Condominium Association, and this is responsible for the maintenance, upkeep, and repair of common areas such as entrances, hallways, stairs, and roof.

Condominium associations have very specific rules which govern living in the building. The rules and conditions for owners vary hugely between different Condo Associations. These may include restrictions on pets, or limitations on the size of pets, as well as restrictions on renting out the condo.

Most condos also have fees that are paid annually for the upkeep of the building and exterior areas, so it’s important to factor those into your cost of ownership calculations. It’s also important to know all of these things upfront in order to decide if the building you choose is suitable for your lifestyle.

Condo Associations have a responsibility to disclose these rules and make the paperwork available to you.

Condos are a great choice to achieve value in the Sarasota real estate market also, as return to investment ratio tends to be quite good when renting, and condos are appreciating. The actual amount varies area to area.

PROS

• Generally very secure
• Very minimal maintenance – only the interior
• More affordable than townhouses or single family homes
• Return rates may still be good despite lower cost
• Condo Association handles all maintenance

CONS

• Unusual to have outdoor space
• Neighbor Noise
• Little Privacy
• Condo Association fees

Townhouses

Townhouses are properties that tend to be arranged over two or more floors, in areas where the ground footprint is at a higher premium. These tend to be good value, as the land value is generally lower than on a similar single-family home which is more spread out.

Townhouses are hot investments because, although the price is about the same as that of a condo, they tend to have lower monthly fees. These properties also tend draw slightly higher rents and generally attract more family-oriented clients. Townhouses are also a great option for vacation and seasonal rentals.

PROS

• Slightly lower heating/cooling bills due to houses on either side.
• Less exterior maintenance than single family homes
• Usually exterior upkeep managed by HOA
• “House” living experience, but usually more affordable than a single family home
• Ease of living in a close community – safety and security
• You own the land the home sits on as well as the interior and exterior of the home
  Often have security
• “House” experience but less garden to look after

CONS

• Possible neighbor noise
• Small gardens or outdoor space
• Little say in the exterior look of the property HOA fees
• Sometimes less light than stand alone homes Less privacy than stand alone homes

Retirement Homes / Villages

Retirement homes and villages are becoming more and more popular as the population ages and more and more baby boomers enter retirement with disposable income and a desire to enjoy their golden years. Retirement villages tend to offer good security, facilities on hand which appeal to seniors, often organized group activities, and social common spaces or entertainment venues.

Retirement communities very often have staff on hand, and it may be possible to buy a long-term lease rather than ownership of the entire home, thereby saving you capital but giving you a home of your ‘own’ for a long time. This may be a simple way of avoiding some of the complications of homeownership.

PROS

• Safety and security
• Help on hand should you need it
• Little or no maintenance
• Properties set up for older people
• Activities and facilities on site

Other Community Factors to Consider

Homeowner’s Associations

It’s pertinent to note here that most homes, particularly in upper scale neighborhoods in Florida, are managed by Homeowners’ Associations or HOAs. These differ slightly from the concept of Condominium Associations because the owners of the individual lots do not share ownership of the common areas.

These common areas are owned by the HOA itself. Usually, they own the title deed, but similar to a Condominium Association, the HOA is responsible for the maintenance and upkeep of the common areas.

Homeowners’ Associations are generally responsible for everything that affects the community as a whole, most specifically the exterior appearance of the community.

Regulations can manage everything from open house signs, exterior property maintenance, colors you may paint your property, and plants you may use in your garden to what your mailbox looks like, your fencing, and even curtains.

While to many international buyers these restrictions may seem incredibly over-bearing, their purpose is to ensure that the look and feel of the community are maintained and there are myriad benefits to having an HOA manage your community. Specifically, they ensure that home prices are maintained, and no building can be “letting down the neighborhood.”

Gated Communities

Gated communities are a particularly American phenomenon. They are enclaves of homes—often developed all at the same time with an identical or very similar feel—which has some kind of security or entrance that separates them from the wider community.

Gated communities are prized for the security they offer residents, as well as their feeling of community. Often these communities are created around golf courses, so a shared interest brings residents together with other like-minded individuals. They are almost always managed by an HOA.