Did you know that checking the wrong box on a contract can cost you an extra $20,000? If you have been thinking about buying property in Florida
and are considering land and lots as an option, then you must be aware of applicable assessment and impact fees.
It is true that there are many fantastic bargains to be had on property for sale in Florida with many lots and larger parcels of land available at incredibly low prices. These are great investment property choices for those looking for an easy to manage, low risk investment with extremely low holding costs. However, unless you are aware of all the potential costs involved now and in the future you may just find that the profits you were expecting to receive are a lot smaller than you thought. For those looking for land to build a new home this is even more critical. $10,000-20,000 can make a huge difference and could end up wrecking your entire plans for your new home in the sun.
So how much are assessment and impact fees, what are they exactly and when do they come into play when purchasing a Southwest Florida real estate property?
Assessment and impact fees are charged by local municipalities for essential infrastructure when developing and building new homes. In SW FL these impact fees are for connecting to city water and sewer services from well and septic systems and the costs generally range between $3,000 to $4,000 per service.
Assessments are normally associated with piping projects and are assessed through additional property taxes. Assessment fees can often be financed over 5 to 10 years while impact fees normally must be paid off within 5 years. However, any delinquencies must be paid off when the home is sold. This should not scare people off from taking advantage of the many great deals that property for sale in Florida offers. Though you must be aware of what costs are involved and how they may affect your payments and investment in the long run. As with anything else, this is of course, something that you can often negotiate with the seller of a property before signing the contract.