If you’ve ever dreamed of waking up to the peaceful sound of waves crashing the shore and being constantly surrounded by the best the Sunshine State has to offer, then living in the Florida Keys is for you. In this paradise, unlimited outdoor adventure and beautiful beaches await you each day.
The Keys comprises a series of islands off the southern coast of Florida and stretches roughly 120 miles. Miami is 50 miles north of North Key Largo, the first of the island chain’s many communities. Meanwhile, Key West, the region’s southernmost tip, is about 105 miles north of the Cuban capital, Havana, making it nearer than Miami, which is roughly 160 miles away.
This guide details how to buy a house in the Florida Keys and why owning a home in the region is one of the best lifestyle and investment choices you can make.
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WHY BUY IN THE FLORIDA KEYS?
All About the Keys
Living in a beachfront home is only one of the perks of living in the Keys. It’s a popular option for many because of its slower, more relaxed lifestyle. You are also surrounded by a breathtaking environment that is boosted by agreeable year-round weather and a strong sense of community.
When choosing to buy a house in Florida Keys, there are three major areas to consider: the Upper Keys, Middle Keys, and Lower Keys. Each section has something unique to offer.
- Uppers Keys stretches from North Key Largo and down to Lower Matcumbe Key. This area carries a more suburban atmosphere but still has high-end shopping, fine dining options, and water sports, including fishing and snorkeling.
- Middle Keys runs from Duck Key to Marathon, which is also one of the most populated communities in the entire island chain. This is the place for shipwreck diving and fishing for larger game as the surrounding waters are teeming with tuna and blue marlin.
- Lower Keys starts from Bahia Honda Key and travels all the way to Key West. Being the farthest from the mainland, this section has a laid-back and rural atmosphere. The area is also known as the Natural Keys as much of it is made from fossilized coral reefs. The best beaches are reputedly found here.
Key West and Marathon are two of the most popular communities in the Florida Keys. Key West is arguably the most popular location in the island chain, famous for its unique pastel conch-style houses. Meanwhile, Marathon is a family-oriented island community that offers a retro vibe and many outdoor recreational activities.
Florida Keys real estate
If you are deciding whether or not to buy a house in the Florida keys, here are a few essential points to consider:
- The housing market in the region is unlike other markets because of its consistent stability; high demand, low supply, and government-mandated limited growth mean excellent value and returns for property owners and investors.
- Due to the fact that only 3% of the charted islands are inhabited, land is an incredibly a valuable asset in the Florida Keys. This has resulted to a steady appreciation rate in the region.
- Monroe County covers the entire Florida Keys. As of the time of writing, homes for sale in the market have a median listing price of $1.2 million. The median sold price is $857,500, which correlates to a sales-to-price ratio of 97%. For now, Monroe County at large is considered a buyer’s market, favoring potential homebuyers.
GUIDE TO BUYING HOMES IN THE KEYS
House-hunting can be an enjoyable experience, especially if it’s your first home, but it can be equally challenging if you don’t have the right tools or information. When it comes to purchasing a home, it’s best to understand your motivation to help you set realistic goals and parameters. For example, if the house will be your private residence, it should meet the needs of your lifestyle all year round.
Important tips to remember
Once you’re ready to buy a house in the Florida Keys, bear in mind the following:
- Work with a local real estate agent – Their main job is to guide and support you through the entire homebuying process. Their background and experience are crucial to your success. Here are just some of the ways a real estate professional can help:
- Access to professional networks: A real estate agent works with industry partners such as lawyers, interior designers, and other contractors. You will be able to tap into this network of trusted colleagues depending on your needs.
- Improved price negotiations: Realtors are some of the most skilled negotiators anywhere. Their market knowledge, property value, and negotiation experience will help you get your money’s worth.
- Information and access to off-market properties: Through their network, local real estate agents can show you homes that haven’t been listed on the market. This enables you to beat the competition, especially if the property is already generating plenty of buyer interest.
- Explore the area – Before choosing a home, take some time to hit the pavement and explore the Florida Keys, or at least the section you are most interested in. This will narrow down your home search and discover lifestyle options available in the community. Expand your focus from the home to the surrounding areas—the appearance and value of the properties in the neighborhood can impact the value of your home if you decide to sell in the future.
- Buy insurance – When you buy a house in the Florida Keys, paying to protect it is best. Consider different policies and types of coverage to protect your investment from all manners of threats, man-made or natural.
How to buy a house in the Florida Keys
- Find a reliable Florida Keys real estate agent
Off the bat, you can buy a house in the Florida Keys on your own, but we highly recommend getting a local Realtor to assist you in the process. Find an agent you feel comfortable with and whose fees are agreeable to you. Ask friends and family members for referrals and interview prospects.
- Prepare your financing
Are you an all-cash buyer or are you getting a mortgage loan to finance your home purchase? Before you proceed with the process, it is important to get your financing in order first. If you are borrowing money, shop around and explore different terms and packages. Secure a pre-approval letter or, better yet, have yourself pre-underwritten for a mortgage.If applying for a mortgage isn’t possible for the time being, use this stage to improve your financial standing. That may include improving your debt-to-income ratio and paying outstanding debt.
- Search for the right property
Start at locations you are most interested in to gauge whether these neighborhoods have properties that match your criteria. From there, explore surrounding areas to add more options without completely widening your scope. Conducting a preliminary home search online will help you see what is currently available in a certain market, and if it should be included in your list of areas to explore.If you are planning to buy a house in the Florida Keys remotely, familiarize yourself with the dos and don’ts of virtual home tours. This will allow you to scrutinize each potential home as if you were there, along with the help of your real estate agent.
For both scenarios, it’s handy to take notes and pictures. This will help you compare properties if several homes catch your eye.
- Make a good offer
Once you find your dream home, coordinate with your real estate agent to create a good offer. Discuss its contents, from the offer price to contingencies you are willing to waive or would like to keep. Your agent will draft the contract and submit the offer to the seller’s agent.Depending on the property, your contract should contain certain conditions regarding the purchase, including repairs you want to be completed, requests for appliances that will be left at the location, and your closing timeframe. The seller, at this point, can accept, reject your offer, or make a counteroffer.
- Closing
Depending on the extent of requests on both sides, there will be some back and forth during this stage. Final negotiations on the price, amenities, and timeline are pinned down. Your documents should be in order—including your proof of employment, tax documents, and loan papers. Your mortgage should also be finalized and approved at this point.As you agree, the home will go into escrow, and the closing process will begin. There will be a final date set and specific conditions that must be carefully observed for the purchase to be finalized. Before closing, it’s best to do a final walkthrough to ensure everything within and around the property is in order.
On the day of the closing, the sale will be finalized. Should everything go smoothly, the ownership of the property will be completely transferred to you.
Things to know before you buy a house in the Florida Keys
Florida has consistently as one of the top-ranked states regarding net migration — the number of people moving in versus moving out. As more people look to make the Sunshine State their home, these essential aspects shouldn’t be ignored:
- Property taxes: You will not be paying state income taxes in Florida, but you will be taxed on your new home: 0.91% of the house’s value in annual property taxes. It may be wise to ask the previous homeowner about their property tax bill from the previous year to arrive to a better estimate your own homeownership costs.
- Seller’s disclosure: A seller in Florida must inform you of all facts that can affect the property’s value. It is highly recommended to put this in writing.
- Closing costs: On top of the down payment, you will need to pay closing costs to finalize your purchase. In Florida, the average home sale comes with approximately $8,500 worth of closing costs.
FREQUENTLY ASKED QUESTIONS AND RELATED TOPICS
Here are some common questions asked by those looking to buy a house in the Florida keys.
Does Florida offer homebuying programs?
Yes. Based on your homeowner history, you can qualify for different first-time home buyer programs in the state. Programs like the Florida HFA Preferred Conventional Loan offers lower mortgage insurance premiums; the Florida HFA Preferred 3% Plus Conventional Loan covers a 3% down payment and closing costs, and the Military Heroes Government Loan Program is specific to veterans and people in the active-duty military.
Other options include:
- HFA Preferred Grant
- Florida Mortgage Credit Certificate Program (MCC)
- National First-Time Home Buyer Programs
Where should I buy a house in the Florida Keys?
The answer to this question depends on you, the lifestyle you lead, and the primary purpose of your home purchase.
Who pays for title insurance in Florida?
Title insurance protects your property from third-party claims, including those related to the obligations of previous owners. This is issued at closing, and depending on where you are located, parties will often agree that the seller pays for the owner’s policy and the buyer pays for the lender’s policy. The rates are also established by state law.
WORK WITH THE LISA FERRINGO GROUP
With its natural beauty and all the exciting adventures it offers, it’s no wonder that the Florida Keys is one of the most sought-after destinations in the country. Finding and buying a home in the Keys is perfect for anyone seeking an island lifestyle without compromising world-class urban amenities. The Lisa Ferringo Group can help you find the best real estate options here.
Lisa is a trusted and well-established Realtor for residential properties in the Florida Keys and has been so since 2015. She is supported by an excellent team of real estate experts on luxury waterfront homes, primary, secondary or vacation homes. Lisa has over three decades of real estate experience. As a testament to her success, Lisa has been recognized as the #1 Residential Realtor in the Florida Keys for seven consecutive years (2014 to 2021). And the best is yet to come.
Get in touch with The Lisa Ferringo Group today at 305.797.1221 or send an email to get to know the wealth of real estate opportunities in the Florida Keys.