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Buying new or resale? New homes are built incorporating the latest building codes with warranty protection and often an extensive range of inclusive fittings. There is also less likelihood of eventually discovering that your home inspection failed to identify that leak under the floor or other sundry gremlins! A suitable new/off plan property, in an appropriate location can deliver exceptional gains. In Sarasota we have clients who after taking our full briefing course have deposited 25% ($100,000) on a $400,000 property which will take three years to complete and has risen in value by 10% a year. however I would stress painstaking research and advice is necessary and requires in depth advice – it is not necessarily a get rich quick scheme! indeed in some areas it can be a case of losing money! Keys to successfully buying a new house off plan are location and timing:- ·          The most desirable locations can be where few other new developments are being constructed; some areas of Florida have masses of new construction others very little. ·          Timing can make or break the viability of your plan; being locked into a 2 year agreement is great in an ascending market, bad if a bubble bursts. Like minded investors buying and reselling at the same time can leave you vulnerable.  Pitfalls to be aware off before buying new, include don’t buy directly from a developer. There is no discount or saving and there are significant legal implications often glossed over, as well as the risk of being sold unnecessary extras.  Beware of buying direct from companies using glossy adverts and brochures to entice you with cherry picked developments that may offer them higher commission rates, no help to you! A number of builders have gone into liquidation with very little warning - buyers from overseas have lost their deposits so again it is worth receiving a full independent briefing before taking sales spiel at face value. All this emphasizes the need for a specialist to guide you through potential pitfalls, although certain new/off plan developments are sound investments bear in mind some companies who advertise in Britain focus on a few developers paying favourable commissions at the expense of better value properties. From an investment perspective, the right new property is an excellent hard to beat investment. Resale homes in Florida can in certain cases be better value than new properties - they often have larger lots, more mature landscaping and an established community. Age and build quality are critical factors - properties only a few years old may still be covered by a warranty and be built to more recent codes and standards. The owners may have added in extras such as a pool the cost of which may not be fully reflected in the asking price. On the negative side some resale houses that have not been maintained and updated can be a drain on the pocket - houses of a certain age can be built with inferior materials - problems can include lead based paint (pre 1978) which can cause lead poisoning, poor wiring (been there!), rising damp, rusting water pipes - been there as well - older pipes are buried under the concrete foundations - etc. In certain areas older homes may lack sewerage connections and watch out for termites and infestations. The other factor in this equation, which was a factor in my own favour when I bought the house above several years ago when moving to Sarasota! is location. Ultimately the old adage location, location, location rings true and thus a house on its last legs in the right spot may well be a better medium and long term investment than a brand new all singing all dancing property. Another point to be aware of when considering a resale property concern a property that have been altered without the owner or his builder obtaining the necessary licenses. In effect these areas are in violation of the building code and subject to a citation (fine). This is at the very least a problem in the future if you decide to sell the property. Common examples of code violations are unapproved extensions, conversions, enclosure of lanais and a new bathroom. Its amazing how many older homes in Florida have unlicensed garage conversions - if problems crop up as a result of this after you have bought - you are responsible! To minimise risks you will need the services of a good home inspector. It has been known for a home inspector to have too close a working relationship with a Real estate Agent and unfortunately miss some key factors that may cost money down the road. There is a higher possibility of this taking place if one agent is handling both the selling and buying transactions and thus collecting all rather than half the seller’s commission. This is dealt with more fully in our briefing section, details below. Once again the other factor is selecting an experienced well - qualified agent who will look after your interests, have access to all properties available and have access to a team of experts and professionals to carry out the necessary checks. Many agents who advertise in the British press work exclusively with a few developers and do not wish to deal with resale properties that may lower commissions. One final point as a Brit we often seek to pursue that bargain, and you will see as you drive around signs advertising for Sale By Owner. Although there may be a bargain somewhere out there a lot of these properties are not any cheaper than neighbouring properties - the tendency for many of these owners is to want to keep more of the profit from a transaction than to pass it on to the buyer. Without an agent you will have difficulties tracking the real value of the property and there are other legal implications. Some of the other areas that need to be considered depending on where you are buying a new property  and many a time you will not get a completely accurate response from sales agents – this is covered in depth in our briefing sessions, click here Is your lot going to be developed several months or years ahead of neighbouring lots? What are the implications in terms of eventual resale value of selecting a particular lot? Your reasons for the selection of a particular lot could have a significant financial affect on the resale value later on. The builder’s agent may need to sell a few remaining lots from a particular phase before the next selection are released and offer what appears to be at first glance an attractive discount. However the new phase may have significantly better resale potential. When it comes to eventual resale the chances are that you will be selling to an American and their criteria for home selection has subtle differences to that of the overseas buyer. Is your agent competent to advise you of these cultural differences? Is that lovely lake at the back of your house going to be dry in the winter? What are the positive and negative implications of maintenance free homes? How many properties do builders build a year? What is the company's history with the local Chamber of Commerce and Better Business Bureau? One builder had extensive coverage in the local press - it was not complimentary! Does the company or its directors have other adverse problems? The owner of one building company has a record with the local Sheriff's office relating to fraud.    Which gated communities will issue you with a notice of contravention if you unload the shopping out of your car, in your own driveway, instead of in your garage? Yes, I am being serious, and no you will not always be told ! Which golf communities include golf club equity in the price of the property  What are the implications of this? What are the less obvious implications of 55+ communities?  Which areas are susceptible to flooding due to drainage problems? Which are the best companies to select to carry out home inspections, which  companies take 30 minutes for the inspection, which companies take over  two hours? What are the environmental consequences to a buyer of buying a plot of land  or property in an area that used to be used for cattle grazing in Florida? Which clauses (contingencies) is it absolutely vital to insert in the contract to  protect the buyer?  Can the company provide a list of the buyers of all their properties over the past few  years? One small / medium builder in the area actually can and does. Is it worth having a pool put in at the time of completion, or just the connections? Another pool company may offer better value for money. Will you automatically be given a copy of the County approved building plans? Some builders do not provide these plans, however you may require them in the future to locate structural details, services etc. How do you obtain a replacement termite warranty if treatment fails?  What approach should be adopted at walk-through if the Builder states they work on a zero faults policy, i.e. all faults have to be recorded and rectified before closure? Warning, Sometimes Clients do not want to be dependant  on an Agent and decide to do their own thing and look around a few model homes.If you have registered or signed a visitor’s book when you walked into that development or have given your personal details you have lost your exclusive agent representation. Would you know which questions to ask a developer, such as some of the ones above? Another point - how much information about your own circumstances have the sales staff gleamed from you? - As they used to say careless talk costs lives - or in this case careless talk may well cost you money!  The commission for your agent was included in the selling price of the house. You will not obtain the property at a lower price by buying it directly from the builder, instead the builder benefits. Therefore you forgo your agent’s exclusive representation of your interests. This has happened all too frequently to unsuspecting overseas buyers, so please be careful. The same is true if you drive past a house you like and call the agent on the sales board, without going through your own Buyer’s Broker. If your own agent is working specifically for you he/she is legally bound to tell you information he/she is aware of which could affect the selling price, for example the seller may require a quick sale for financial reasons. However if you are dealing directly with the seller’s agent they are legally bound not to give you that information, if it affects their client, which in the example above, it would. _______________________________________________________________ For further information on how to obtain specialist advice on relocating or buying property in Florida, the advantages and disadvantages of different locations, and importantly how to obtain details of  specialised fully licensed Real Estate Agents, experienced in explaining options from a British perspective. Click here     Thinking about buying a property in Florida - click here   Thinking about selling a property in Florida - click here   Thinking about emigrating to Florida - click here   Just want to be sent details of suitable agents with excellent testimonials and a proven track record of working with British buyers – click here Just want details of every available property in Florida – click here   Andrew Bartlett an acknowledged expert on property trends and relocation in Florida, writes articles and answers readers’ questions for several British publications including Florida Magazine, Escape Magazine, Place in the Sun, Sunday Times, America, and The Red guide to buying Property in America and is regularly consulted by journalists and broadcasters. His consumer web guides have received numerous accolades.   Andrew was a Senior Government Official for 20 years before relocating to Florida several years ago where he was headhunted to set up specialist British property and relocation teams for Coldwell Banker and Remax - America’s largest estate agents. He then established a uniquely impartial and independent relocation and property briefing company working between Britain and Florida. He has written a number of watchdog style articles warning Brits planning to buy property in Florida or considering emigration about misleading and dangerous selling practices.