Miami: 7 Common Mistakes to Avoid When Buying Property

The real estate market in Miami is attractive because of its strength. (LordRunar/Getty Images) (LordRunar/)

The robustness of the real estate market in Miami and its peripheral locations attract the interest of investors from all over the world. It is a dynamic and constantly growing business. But invest in the south of the Florida it is expensive, so it is advisable to be well prepared before committing a large sum.

Acquiring a property in the city or its beaches is complex, so mistakes —which usually cost money— are a high risk. Here we alert you to seven of the most common.

1. Not seeking advice

This is the most common mistake among people looking to invest in USA. Just as you wouldn’t go to court without a lawyer, you shouldn’t tackle such a large investment without professional advice. There is no place for the vagaries of improvisation and inexperience. The real estate agent Lilian Gramundo said to infobae that “it’s crucial to have experienced counsel, who understands the South Florida market well, and not walk away with the first ad you see.”

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2. Not relying on professional advice

What is the use of seeking professional advice if you are not going to trust it? The real estate agent you have chosen has spent time and money preparing it and has the experience to get you the best deal possible within the legal framework. It is possible that you understand this type of transaction well in your city, but each locality has its characteristics and it is convenient to listen to those who know the market.

Very important: do not be influenced by friends or relatives who, despite having the best intentions, do not know the subject beyond their personal experiences.

Latin Americans are the ones who buy the most properties in Miami.
Latin Americans are the ones who buy the most properties in Miami.

3. Not obtaining the certificate of reoccupation

A certificate of reoccupation is the document that, after an inspection, certifies that the property complies with the zoning codes in force. This protects you from any structural changes to the property that have been made without the proper permits. An out-of-code property can incur daily fines of hundreds of dollars until the problem is fixed. Also, knowing about these changes allows you to negotiate a lower price for the property, or have the current owner cover the cost of updating.

4. Not knowing the rules

Another common mistake is to ignore the rules of the place where you are going to buy. Surely you ask yourself: “What rules, if the house is mine?” Although the property is yours, the site where it is may be managed by a owners associationin which case you will have to submit to their statutes.

For example, there are those that do not allow buying for rent. Or that they don’t allow you to have pets. Or that the curtains that face the front have to be white. There may be several rules you disagree with, so it’s important to be informed beforehand. Most associations can provide you with the contract in advance.

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5. Buy in a personal capacity

Another common mistake. Taxes for foreign investors are very high. That is why buying in a personal capacity is very expensive. However, if you do it through a corporation or other legal entity, you can save a lot of money.

real estate miami
It is important to have professional and experienced advice to buy a property in the Magic City. (MLS)

6. Not stopping at the purchase contract

As a real estate agent is needed, the assistance of a real estate agent is also relevant. real estate attorney. There may be clauses in the contract that work against you as a buyer, and while your agent should be familiar with them, they are not legal experts. A good contract has tools to protect your investment and give you the opportunity to withdraw if you change your mind.

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7. Not planning

Not planning ahead can delay the purchase process. You need to prepare financially several months in advance. You must increase your capital and have the funds to cover any eventuality that arises. You also want to have your documents in order. Most homeowners associations mortgage banks background checks: you want to avoid any inconvenience. You will also want to contact an accountant to advise you on the financial process so that nothing takes you by surprise.


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Jorge Pérez and his former partner would compete for a USD 1,000 million piece of land in Miami