Buying property in Florida when you’re moving from the UK is an exciting adventure. But, the process is different from buying a home back home. Below, we’ll guide you through the steps, highlight key differences and provide you with everything you need to know before buying your dream home in the Sunshine State.
The Process of Buying a Property in Florida
Though Florida and the UK certainly have their similarities, there are some things that separate us. For example, the climate in Florida is very different. Another difference is the property market and becoming a homeowner. Once you have decided where to live in Florida as an expat, you’ll have to navigate buying a property, a process slightly different from what you would have experienced if you’ve previously bought a property in the UK.
In Florida, having a licensed realtor is highly recommended. They will help you to navigate the market, arrange property viewings and negotiate the sale on your behalf. The seller usually pays for realtors in the US, so there’s no cost for you to hire one. Before you start house hunting, it’s a good idea to get pre-approved for a mortgage. This gives you a better idea of your budget and shows sellers that you’re a serious buyer.
Once you have found a property you like, your realtor will help you make an offer. Unlike in the UK, where you negotiate through solicitors, offers in Florida are made directly through the realtor. After your offer is accepted, the purchase goes into an escrow period, which tends to last between 30 and 45 days. During this time, inspections and appraisals are completed to ensure the value and condition of the property.
Once the escrow period ends, it’s time to close the deal. Closing typically happens at a title company office. This is where the buyer and you will sign all of the necessary paperwork, and ownership of the property is officially transferred. In Florida, this entire process is usually quicker than in the UK and tends to take place within a month of making an offer.
How Does Buying a Property in Florida Differ From the UK?
There are some big differences between buying a property in Florida and the UK, such as:
- Legal Representation—In the UK, both the buyer and seller have solicitors, who largely handle the transaction. In Florida, realtors and title companies manage the sale.
- Property Chain—Unlike the UK’s property chain system, where you might wait for other buyers or sellers, Florida’s process tends to be faster and with fewer delays.
- Closing Costs—In Florida, closing costs tend to be higher than in the UK. These costs include title insurance, taxes, and lender fees, which typically amount to between 2% and 5% of the purchase price.
- Mortgages—Florida mortgages differ in terms of rates, types, and availability. Fixed-rate and adjustable-rate mortgages are the two main types in the US, while the UK has a wider variety of options.
What to Expect From The Property Market in Florida
When you’re moving to Florida, it’s a good idea to familiarise yourself with the property market.
Florida is a hot property market, attracting both domestic and international buyers. This is due to its warm climate, job opportunities and lack of state income tax. In recent years, property prices have been rising steadily, particularly in busy cities like Miami, Orlando and Tampa.
There’s a lot of variation in terms of property prices in Florida, which is likely to have an impact on which regions are within your budget. What you’ll get for your money can vary hugely across the state.
Miami
Miami is one of the most sought-after real estate markets in Florida, known for its luxury high rises and vibrant nightlife. It attracts a global audience, from holiday home buyers to investors seeking rental properties. Prices tend to be on the higher side due to its popularity with international buyers and proximity to the beach. You’ll find everything from luxury condos with ocean views to spacious family homes in Miami.
Orlando
Home to Disney World, Universal Studios, and a growing tech industry, Orlando offers more affordable housing than Miami. Due to its tourism-driven economy, it’s a booming market for both residential buyers and investors looking for holiday rental properties. In Orlando, you can find a mix of new-build suburban homes, gated communities, and properties tailored for short-term rentals near theme parks.
Tampa
Tampa offers a mix of urban living and beautiful beaches, which is why it draws in many expats. It’s more affordable than Miami and is gaining attention as a desirable place to live and invest. The real estate market in Tampa is diverse, offering waterfront properties, historic homes, and modern condos.
Jacksonville
Jacksonville offers a range of property options, including suburban homes, historic neighbourhoods, and beachfront properties. It offers some of the most affordable real estate in Florida, making it attractive for both families and investors. The market is expected to continue growing as more businesses relocate to the area.
Fort Lauderdale
Fort Lauderdale is popular for waterfront homes, condos with ocean views, and suburban properties. Although property prices are slightly lower than Miami’s, the market remains competitive due to demand from retirees and international buyers.
Naples
Naples is known for its upscale living, golf courses and stunning beaches. You can expect to find luxury homes, beachfront condos and properties within exclusive gated communities. Naples has one of the most expensive real estate markets in Florida, with high demand from retirees and second home buyers driving up prices.
Affordability, Mortgages and Interest Rates in Florida
While Florida offers some affordable options, certain regions have seen significant price hikes. As a UK buyer, it’s important to be aware of these fluctuations, as well as the potential for homeowners insurance premiums to be higher due to hurricane risks.
Mortgage rates in Florida are generally higher than in the UK, and you’ll need to meet specific requirements. This could include needing a higher down payment as a foreign buyer. It’s important to work with a mortgage broker who understands the needs of international buyers and can guide you through the process.
Research and Prepare Before Buying a Property in Florida
Before diving into the property market in Florida, it’s a good idea to set some time aside for thorough research. Florida is a large state with diverse regions, so research which areas align with your lifestyle, work or investment goals. Familiarise yourself with property taxes and insurance rates as, in some areas, hurricane insurance is required and this can add to the overall cost of owning a property.
As an expat buyer, there may be specific visa or legal restrictions depending on how you plan to use the property. If you’re planning to rent it out as a holiday home, make sure local regulations allow for short term rentals. You’ll also need to be prepared for additional costs – such as title insurance, appraisal fees and taxes – which can increase the total cost of the property.
One of the most important things to do before buying a property in Florida is working out how to get your personal belongings there. You can hop on a plane, but you’ll need to enlist the help of removals experts when it comes to shipping everything else. This is where we come in. At United International Removals, we have a great deal of experience in helping expats move from the UK to Florida. We can guide you through the international removals process, making sure that your belongings get there quickly and safely. Contact us to find out more.