Your Dream Home Awaits: What to Expect When Purchasing Property in the Florida Keys
Purchasing property in the Florida Keys is a dream come true for many, offering a blend of tropical beauty, vibrant community life, and strong real estate investment potential. However, the process involves specific considerations due to the Keys’ status as an Area of Critical Concern. This designation, combined with new industry rules, means buyers need to be informed and well-prepared.
1. Get Pre-Approved for a Mortgage
Before you begin your search for homes in the Florida Keys, it’s essential to get pre-approved for a mortgage or show proof of funds if paying cash. This step is critical in today’s competitive market, where serious buyers are expected to be financially ready before touring properties.
- Proof of Financial Readiness: If you’re financing your home, a pre-approval letter from a lender shows sellers that you’re a serious buyer. Cash buyers will need to provide a bank statement as proof of funds. These documents not only increase your chances of securing a property but also speed up the process when you’re ready to make an offer.
- Maintain Employment Stability: Lenders prefer borrowers with stable work histories. Avoid changing jobs or starting new employment during the loan approval process.
2. Work with a Local Realtor and Sign a Buyer Brokerage Agreement
In the Florida Keys, signing a Buyer Brokerage Agreement is now a mandatory step before you can tour homes, thanks to recent changes by the National Association of Realtors (NAR).
- New NAR Ruling: According to the new NAR guidelines, buyers must sign an agreement with their Realtor before viewing properties. This ensures transparency and a clear understanding of your agent’s responsibilities. This also means your agent is committed to representing your best interests throughout the buying process.
- Decoupling of Commissions: The updated NAR rules have also decoupled commissions, meaning sellers are no longer required to pay the buyer’s agent commission. In many cases, sellers will still offer to pay a portion of the buyer’s agent’s fees, but it may not always cover the full amount. If the seller covers less than the agent’s fees, you may need to pay the difference at closing.
- Ensure Clarity on Fees: It’s crucial to understand how your agent’s fees will be paid. If the seller does not cover the full commission, the remaining balance will be your responsibility. This should be outlined in your Buyer Brokerage Agreement.
- Avoid Signing Multiple Agreements: Signing agreements with multiple agents can lead to complications. If you close on a home while under contract with multiple agents, you could be liable for paying several commissions.
3. Understand Local Rules, Regulations, and Environmental Concerns
One of the unique challenges of buying property in the Florida Keys is navigating the strict local rules and regulations due to the area’s designation as an Area of Critical State Concern. These rules are in place to protect both the environment and the safety of residents during hurricane evacuations.
- Building Permit Restrictions: Due to the area’s fragile ecosystem and the need to manage hurricane evacuation times, Monroe County operates under a Rate of Growth Ordinance (ROGO). This system limits the number of new building permits issued annually to ensure that the Keys’ population can safely evacuate within 24 hours in the event of a hurricane​(FLKeysLiving)​(Monroe County).
- No More New Construction: As of 2023, Monroe County will stop issuing new building permits, essentially halting further residential development. This is primarily to manage population density for hurricane evacuation safety and environmental preservation​(FLKeysLiving).
- Strict Zoning Laws: Zoning laws in the Florida Keys are designed to limit overdevelopment and protect the local environment. These laws control the types of structures allowed, setbacks, and building height restrictions (typically capped at 37 feet). Furthermore, certain areas have additional restrictions to preserve native habitats and manage flood risk​(Monroe County)​(FL Keys Move).
- Flood Zones and Hurricane Protection: All new construction must meet flood and windstorm-resistant standards. Depending on the flood zone, homes may require higher construction costs to meet these regulations​(FL Keys Move).
4. Explore the Different Areas and Amenities
The Florida Keys consist of a string of islands, each with its own unique personality and amenities. Knowing what each area offers can help you find the right property to match your lifestyle.
- Key West: Known for its lively arts scene, historic homes, and vibrant nightlife, Key West is ideal for buyers seeking a dynamic lifestyle with plenty of entertainment options.
- Islamorada: Famous for sport fishing, Islamorada is perfect for water enthusiasts. It offers a laid-back atmosphere with upscale dining, marinas, and easy access to the ocean.
- Marathon: Marathon is more family-friendly, offering parks, nature reserves, and beautiful beaches, making it a great option for families or retirees.
- Lower Keys and Big Pine Key: These quieter islands are perfect for nature lovers and those seeking a slower pace of life. Here, you’ll find beautiful scenery, wildlife refuges, and easy access to nature trails and kayaking spots.
When choosing where to buy, consider the local amenities, access to services like schools and healthcare, and any restrictions on short-term rentals if you plan to use the property for investment purposes.
Buying property in the Florida Keys offers a unique opportunity, but it’s essential to be prepared for the local regulations, environmental considerations, and recent changes in the real estate market. With the Keys’ designation as an Area of Critical Concern and the new NAR rulings, it’s more important than ever to work with an experienced local Realtor who understands the intricacies of this market.
Ready to explore the Florida Keys and find your perfect home? Contact us today, and let’s start your journey to island living!
