Houses

Most houses and condos in this part of the world are of concrete block and stucco  (CBS) construction. Wood structural components are kept to a minimum in furring strips, studs and roof components.   Some of the newer houses have aluminum studs. This was done to minimize termite problems,  It also permits quicker construction of the outside shell of the house, enabling the inside to be finished out of the weather (rain).

On water or off water, the floor plans and materials are pretty much the same. Prices, however, are not.

Expect to pay a hefty premium for the house on a sailboat canal.  If you don’t actually own a sailboat or know how to operate one, maybe another house, probably with more amenities, on something other than a sailboat canal would be better. Insurance costs may also be substantially higher than on a fresh water system.

SAILBOAT CANAL,Cape Coral

I should point out that you won’t be actually sailing on these canals, at least  not for long, in something other than a dinghy.  They are too narrow to allow effective control of anything larger under sail.  Lakes (or what we call “basins” down here) are possibly different… you need to figure this out.  You will be under power at idle speed in the canals to get to open water.  So, while you’re figuring, consider the time it might take to get from point “A” to point “B”.  After you do that, you may not be so fond of sailboat canals.

So, maybe you don’t care.  That’s OK.  Just so you know…..

Let’s get to the process of selecting a house.  I’m going to list common concerns that you might not think of if you’ve never owned property down here.

Gated, planned communities, and condos can sidestep some of the usual homeowner issues, but they add a few of their own. In addition to the usual association fees, there may be special assessments for improvements or repairs. Further, the local government(s) may have placed an additional special assessment, read “tax”, on the builder. This may be called by various, more euphemistic names, like area development fee, impact  fee, or whatever. They still look an awful lot like taxes. If you talk to the association’s sales people, they will often be reluctant to go into this, at least before you put money down.

This is another reason you need a real estate professional,  particularly if you are new to the area. I’m not new to the area and wouldn’t consider going into one of these communities without a pro on my side.

• These fees can add up quickly and may amount to as much as—or in the aggregate, more—than the real estate tax you’ll be paying on top of them. They could be paid monthly, quarterly, or even annually, depending on the community’s agreement.

• The financial stability of the association also ought to concern you.

Condos are generally priced such that the lower floors are less than the higher ones. On the beaches, what would be the first floor is often the parking area or used for some other common purpose. This is a response to the storm surge possibility. In fact, the third floor is probably about as low as you want to be in a beach front condo. Of course, this is not hard and fast; the ground floor in some of these units might provide enough elevation to get the next level about 25-30 feet above the high tide mark, which is really the objective.

Other things to consider:

• Age of the building. On the beach, anything over 15 years is on the downside of life (as I was told by the owner of a motel up in the panhandle) and you can expect ever-increasing assessments to keep it going.

• Does the unit have quality storm shutters? If not, what are the association’s rules on the subject? You need them. Don’t think for a second you don’t.

• Most of the condos will be offered furnished, and you need to figure out whether this is a good thing. Sometimes, Goodwill doesn’t want the stuff. Sometimes it’s perfectly OK.

• You will want to replace mattresses on general principles. Maybe the carpet, too. Especially on the beach, carpets take a beating.

Buying a foreclosure is a little tricky. Because the prices are so low, there are a fair number of buyers with cash. If you are depending on a loan, by the time the bank approves the purchase, you could be out of the game.

There are also other factors you need to watch for in addition to obvious problems like needing paint:

Foreclosure, Cape Coral

• The yard will likely be a mess, which can cost a bundle to make right.

• Vacant houses with the air conditioner turned off are at greater risk for mold problems.

• If the house was built or renovated after 2002, Chinese dry wall may be an issue (which may also explain why the unit is vacant).

• The house has been at a higher risk for vandalism, so be sure you walk through it to make certain all the parts are there, windows unbroken, the air conditioner actually works,  it has all the pipes and equipment that it should.

• There may be (and probably are) liens against the property: taxes, homeowner association fees,  other assessments, and mechanic’s liens are a few to watch out for…. After all, the former owner failed to pay his house note; what makes you think he/she paid other obligations?

I know I’m repeating some factors I listed above for purchasing houses from the retail market. Expect all of those factors with a foreclosure, plus some. Foreclosures simply are more likely to present these difficulties and they may be more serious.

There will be other wrinkles, some unique to the particular house you’re looking at. You’re probably tired of it by now, but… a  good real estate agent is indispensable. He/she can construct an offer sheet such that you’re off the hook if  your conditions are not met.

One good thing about financing the purchase is that the lender and/or title company will make you aware of title problems sooner rather than at the end of the process. They can be very expensive,  so much so that, together with fix-up costs, they may be a deal killer.

I wouldn’t want to wait until closing to know about these problems, which might be what happens if you rely solely on the title company.

Insurance availability depends on proximity to open water and, consequently, exposure to the dangers of storm surge.  This means, generally, that property on or near Cape Coral’s salt-water canal system (or property similarly situated), as well as units on the beach will be more costly to insure.  Houses and condos on the barrier islands, including Fort Myers Beach, will be even more costly to insure than an equivalent unit on the mainland.

Home inspections are a “must do” before closing. Make sure the home inspector is licensed and guarantees his work. A wind mitigation inspection as a part of the home inspection may save you significant money in insurance premiums. Always do both the basic inspection and the wind inspection; be aware that not all home inspectors are licensed to do both. Ask them before you hire them.

Property taxes are based on the number of square feet “under air.”  That is, inside living space. Garages and lanais (that’s Florida-speak for a covered patio attached to the house) are not taxed, unless they are air-conditioned, even if they are enclosed. Florida also provides a homestead exemption for the primary residence for which you will need to apply; second homes and rental property do not qualify.

For most of the year, the weather is pleasant enough that you will spend a lot of time on the lanai. We use ours for a dining room on Thanksgiving and Christmas if it isn’t too chilly. That’s a lot of untaxed usable space (about 500 square feet in our case) that would not be available to you further north.