10 Tips For Smooth Transition From Contract to Closing For Florida Real Estate Investments

You’ve found the perfect real estate investment, and your offer has been accepted. Now what? How do you ensure it’s a smooth transition from contract to closing for your Florida real estate investment? Our team of experienced local real estate agents collaborated to share these top tips for a smooth closing:

Lock In Financing.

Unless you’re coming to closing with cash, it is critical to have your financing lined up in advance, and to have your loan approval in writing. There are many steps in the loan process, and it is critical to have them all completed before you reach your closing date.

Schedule a Home inspection.

Once you’ve made an offer and signed the contract (which unless your contract says “as/is”, your contract should be contingent on passing a home inspection), you’ll want to schedule a home inspection appointment as soon as possible. Your agent can recommend reputable local, home inspectors. By getting the home inspection done quickly, you’ll have plenty of time to resolve any problems and negotiate for repairs and treatments.

Schedule a Property Appraisal.

It’s important to know fair market value of your purchase and it is required if you’re obtaining a loan. It is best to schedule your appraisal sooner than later as to not run into roadblocks down the line, such as learning that the asking price is greater than the appraised value. Your loan officer and/or real estate agent can recommend a reputable appraiser.

Review Homeowner Association Documents.

It is smart to make sure there are no surprises. You’ll want to review all condominium documents and/or homeowner association documents to fully understand the covenants and restrictions. You’ll also want to understand what your monthly or quarterly dues will be and if there are any special assessments. Be sure to ask your agent if you’ll need to have a signed receipt at closing.

Select a Title Insurance Company.

You’ll want to select a title company or use the one recommended by your mortgage lender prior to closing. Why do you need title insurance? There are essential steps in obtaining the title for property and lenders require title insurance in order to protect the buyer if there are legal or financial problems with the sale. Title insurance covers common claims filed against a title, including outstanding liens, back taxes and conflicting wills. Once you determine your title insurance company, you’ll submit your contract and earnest money.

Schedule a Land Survey.

In Florida, the title underwriter will usually accept the seller’s land survey, but buyer beware. While it may seem like a cost savings to simply use the seller’s survey, it is important to cover yourself. There are plenty of stories that cost a new buyer thousands of dollars and countless weeks to sort out the related issues with survey lines.

Secure Homeowner Insurance.

Most lenders require homeowner insurance prior to closing. This is an opportunity to shop around and find the company and plan that best suits your needs and budget. Due to active storm seasons, some companies do not offer policies in Florida. Ask your real estate agent or lender for recommendations to expedite the process. In addition, if you’re purchasing a home during Hurricane Season June 1 – November 1, you’ll also want to watch the weather channel as homeowner insurance lenders cannot write policies while there is a named storm in the Gulf of Mexico.

 Consider a Home Warranty.

We recommend considering home warranty, especially if the home is more than 3 years old. While new construction usually includes a builder’s warranty and appliances are covered under manufacturer warranties, older homes may be on the brink of breakdowns. A home warranty is a yearly service contract, which covers the repair and replacement of important household appliances and home system components, including refrigerator, stove/oven, washer/dryer, dishwasher, and AC system, that inevitably break down over time. A home warranty provides buyers peace of mind that they won’t be hit with unexpected big-ticket items after closing is complete.

Create a Contacts List.

You’ll want a list of fast references you’ll need for closing including your real estate agent, lender, closing attorney, utilities service providers, internet service providers, post office/mail forwarding, moving services, storage options, among others.

Prep for Closing Day.

As closing day fast approaches, you’ll want to review HUD statements/closing costs and schedule your final walk-through with your real estate agent. Then attend your closing either virtually or in person. You’ll be signing all the important documents at the closing and an expert real estate agent will have reviewed all paperwork in advance to ensure all final numbers and clauses are accurate. Once you sign the final document, it’s time to celebrate ownership of your property! Get our keys and start executing your dreams for your new real estate investment! If you’re considering making your investment a vacation rental home, we invite you to learn more about Newman-Dailey’s property management services. With more than 37 years of experience, Newman-Dailey is voted Best of the Emerald Coast for property management and vacation rentals by readers of Emerald Coast Magazine!

Looking for a licensed, experienced real estate agent for properties in Destin, Crystal Beach, Miramar Beach and 30A? Learn more about our real estate team online or call us at 1-800-225-7652.

We look forward to supporting your real estate investment dreams. Newman-Dailey is where you’d rather be for real estate services.