The Real Cost of Buying a Home in Weston and Miami (Beyond the Price)

I have been investing in Florida real estate for more than 20 years, and the question I hear most from buyers is: "How much will I really pay every month?" Most people think about the price of the home and the mortgage payment. But in Weston and Miami there are other costs that change the final number a lot, and many buyers find out late, when they are already under contract.

These are the ones I always check, with my clients and with my own investments.

1. The seller's property tax is not your property tax

This is the most common mistake. You see last year's tax on the listing and you think that will be your cost. In Florida it does not work like that. When the home sells, the assessed value is adjusted and the tax can go up a lot, especially if the old owner had homestead for many years.

Homestead is an exemption for people who live in the property as their primary residence. It lowers the taxable value and it also limits how much the assessment can go up every year (this is called Save Our Homes). That benefit belongs to the owner, not to the house. If the home will be your primary residence, you need to apply for your own homestead. If you are buying as an investment, you will not have that limit.

My advice: ask for a tax estimate based on the purchase price, not the current value. The Property Appraiser in each county has a calculator for this (Broward and Miami-Dade).

One more thing: Florida voters are deciding on an amendment that would change the homestead amounts, and the date you become a resident can matter. Because this is still moving, here is the official explanation, and I recommend you talk with your accountant before you decide.

2. Home insurance

In South Florida insurance is a big part of the budget, and it is not the same for every home. What matters most:

• The age of the roof. An old roof can make it hard to get coverage, or much more expensive.
• Impact windows and doors, or hurricane shutters.
• The wind mitigation inspection. Many times it lowers the premium and it is worth doing.
• The 4-point inspection (roof, electrical, plumbing and A/C) that insurers ask for on homes with some years.
• The flood zone. Flood insurance is separate and the lender can require it. You can check the zone on the FEMA map.

I always tell my buyers to get insurance quotes during the inspection period, not after. If the number does not work, there is still time to negotiate or cancel.

3. HOA, master association and special assessments

In Weston many communities have an association, and some have two: the neighborhood one and a master association. That is two fees. You also need to ask if there are special assessments approved or being discussed, for example for roads, the gatehouse or the common areas.

If you are buying a condo in Miami, look even more carefully. Florida changed the rules for structural inspections and reserves in condo buildings, and in some buildings this made fees go up or brought big special assessments. Before you sign, ask for the reserve study and the minutes from the last board meetings.

4. Buyer closing costs

In Miami-Dade and Broward, by custom, the buyer usually pays the owner's title insurance policy (this can be negotiated in the contract). If you are getting a loan, there are two state taxes on the mortgage: documentary stamp tax of 0.35% and intangible tax of 0.2% of the loan amount.

Add to that the appraisal, inspection, survey, lender fees, title company fees and the prepaid insurance and taxes for the escrow account. This is money you need ready on top of the down payment.

5. What shows on the tax bill but is not a tax

Some properties have charges on the tax bill that do not depend on the home value, like garbage collection, drainage or a community development district (CDD). Homestead does not lower these. Look at the full bill, not only the total.

6. Real maintenance

Here the A/C works almost all year, the pool needs service, the yard too, and the roof has a useful life. I am not saying this to scare you. When you compare two homes, compare also the age of the roof, the A/C and the water heater. Sometimes the cheaper home ends up being the more expensive one in the first years.

My quick list before making an offer

• Tax estimate using the purchase price
• Home insurance quote, and flood if it applies
• HOA and master association fees, and any special assessments
• Age of the roof, A/C and water heater
• Closing cost estimate from the title company or lender

Want to know the real cost of a specific home?

If you are looking at a property in Weston, Pembroke Pines, Coral Gables, Pinecrest or anywhere in Miami-Dade and Broward, send me the address. I will prepare a simple estimate of the real monthly cost, with taxes, approximate insurance and fees, so you can decide with the full numbers and no surprises.

You can email me at maria.guevara@dluxuss.com or call me at 954-678-8216. I work in English and Spanish.

Maria Isabel Guevara, Realtor, Coldwell Banker Global Luxury. This is general information and does not replace advice from an accountant, attorney or insurance agent.