So You Want To Make An Offer

So you've found a property that you like and are happy with. You can easily picture yourself making numerous trips out to it during the year, to enjoy the sun on the terrace, the laps in the pool, and glorious days at local beaches. There's only one thing for it - you've got to make an offer.

In my case, my parents viewed properties on my behalf, as during this time they were out in Florida on holiday. Having seen one flat in particular that fit the bill - in terms of location, condition and price - we decided to go ahead and make an offer.

Clearly the trickiest part at this stage is deciding on the amount you wish to offer. At the time of writing, the US property market is suffering a considerable downturn, so you may well get a low offer accepted. On the other hand, because of the downturn, your chosen property may have already been reduced in price one or more times and, as such, the vendor is unlikely to decrease the price any further.

Your agent should really be able to help you in this respect. He/she may be aware of what the vendor may accept, or if the property has received previous (unacceptable) offers in the past.

Ultimately, however, it's down to you. Use your judgement and keep to your budget. You're never going to enjoy your holiday home if you overstretch yourself!

Remember, though, to budget in the following items on top of the asking price:

Purchase Costs
You'll need to pay things like solicitor's fees and fees associated with the closing of the sale. You may get an inspection done on the property (a bit like a survey in the UK, though not as extensive). If you're buying a condo, you'll most likely have to pay prorata maintainence fees and taxes for the remainder of the year; the condo association may also ask for a background check on you, which they will charge you for. The foreign exchange company that you intend to use will also charge a fee for transferring money. Finally, don't forget that if you're not in the U.S. during the purchase of your property, you will need to pay for official documents to be shipped there.

Furniture Costs
Once you get your property, you've got to furnish it! Whether you buy the basic essentials or go all out is obviously up to you, but either way, furniture is obviously a necessity. Take a look at furniture store websites such as Ikea, Rooms To Go, El Dorado and Macy's to get an idea of prices. Generally, furniture in the US seems cheaper to the UK.

Taxes
Once you own your holiday home, you'll need to pay annual taxes. It varies depending on where you are in Florida, and the amount will also depend on the value of your property. Budget about 1.5% to 2% of your purchase price on taxes.

Maintenance Fees
If you're buying a condo, you'll have to maintenance fees for the upkeep of common parts and areas. These will obviously vary depending on the building. Ask you agent how much the fees are for specific properties that you're interested in.

Utilities - Electricity
This, again, is a little hard to budget for. It of course depends on much of the year the property will be occupied for. Keep in mind, however, that you may have to keep some things running even when you're not there - air conditioning, for one, to protect against the humidity and prevent mould from appearing on the walls.