Property Rights Law Firm, P.A.

Accounting for a home's true cost

Buying a home in Florida can help a person obtain a higher net worth. However, buying a home that is too expensive can result in financial difficulties for an individual. Therefore, it is important that a buyer understand how much he or she can afford to spend on a home purchase. Ideally, buyers will create a housing budget based on their own criteria as opposed to relying on a lender's opinion.

It is important to note that a real estate agent could show a buyer a home outside of his or her price range just to collect a larger commission. In addition to the mortgage payment itself, a potential home buyer will need to consider other expenses such as a down payment and closing costs. After a deal closes, an individual will also need to pay moving expenses as well as pay for furniture and appliances.

Even if a person doesn't need to buy furniture or pay moving costs, there are long-term housing expenses to consider. For instance, a homeowner should save about 1 percent of the home's value per year to maintain it. Utilities and homeowners association dues could also add up to hundreds of dollars spent each month. Homeowners insurance premiums and property taxes will need to be paid as well.

It is not uncommon for a residential property to have issues that need to be disclosed. An attorney may assist a buyer obtain necessary disclosures to help that person make an educated decision about a property. Furthermore, he or she may explain the home inspection process and how it may uncover problems a property may have. If an issue with the home is discovered, legal counsel may work to negotiate a reasonable solution to the problem.

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