Luxury Home Advice - Florida Luxury Homes

Financial aspects of the home-buying process vary across the country. To save headaches when you purchase a luxury home, know what you’re getting into before you sign on the bottom line.

In Florida, builders usually require a deposit of 10 percent of the overall price of the home. Homes in excess of $500,000 sometimes demand a deposit of 20 percent.

Many builders constructing luxury homes require an even larger deposit because the materials being used are more expensive, making the overhead much more significant than the average home. Because it is important that your builder use the best materials on your home, paying a larger deposit may ensure this happens. The amount is negotiable in most cases, however, it is important to reach an agreement before you sign your contract and are required to put down any money. While the overall cost of the home may not be an issue, it is still important to understand what you are expected to pay up front so there is no chance of miscommunication with the builder.

As you purchase a luxury home in Florida, don’t forget that hurricanes are regular events from June through October. Make sure you are prepared should a hurricane zero in on your new home.

Talk with your Elegant Homes agent and/or builder about whether your home has been constructed with hurricane protection in mind. If not, discuss options for home improvements to add hurricane-resistant materials to your structure. Get everything in writing and deal with a licensed, experienced contractor who knows exactly what your luxury home will need to withstand a strong storm.

And be sure to find out about homeowners insurance. After the heavy hurricane seasons of recent years, the price of insurance premiums has skyrocketed. Be sure you know how much you are going to pay – and exactly what the policy covers as you plan financially for your new home.

Many luxury homes in Florida are located near bodies of water – lakes, canals, creeks, or on the beach. Because of this, luxury homeowners often want to reflect the presence of water in their décor. In some instances, luxury homeowners seek to incorporate a beach theme into the overall look and feel of their home.

Many luxury homeowners, however, opt for a different look – one that reflects their personal tastes. If you like vivid colors, incorporate them as accent pieces into your home among neutral furnishings. If you are a traveler, give your home a worldly look by decorating with pieces collected during your travels.

Don't make the mistake of thinking you must have a beach-inspired decor in your home, just because you’re in Florida. You are able to customize your luxury home to look any way you would like it to look, which will inevitably add to its overall appeal.

When you are striving for a certain look and feeling in your home, it’s always a good idea to work with a decorator. A decorator can give feedback and perspective on your ideas, and also can provide resources you may not otherwise have access to.

Curb appeal is important for a luxury home. An inviting exterior adds to the appeal and value of the property, and can make it easier to sell.

Your home exterior should exude luxury and sophistication. Hire a landscaper to give your yard the look and feel it deserves. A good gardener can add a huge zest of color with a small, easy-to-maintain garden area that will instantly spruce up your outdoor space. Invest in quality outdoor furnishings that compliment your landscaping, but that also allow you to enjoy the Florida weather. These steps will help to keep the exterior appearance of your home looking good for visitors, potential homebuyers, and yourself.

Vacation homes make up a large portion of the luxury home market in Florida. Before you invest, however, here are a few things to consider:

• Will you be investing alone or with a group of people? Investing with a group is usually done in a timeshare contract, in which you agree to a schedule for each family with the remaining dates available for rental opportunities. This helps maintain a steady flow of income for all investors as well as opportunities for vacation in the home.
• Consider hiring a management company to look after the home if you do not live within driving distance. A management company can keep up with small repairs, provide security, and be at the site in the event of an emergency. This is particularly important if the home is rented frequently.
• Keep decor simple and neutral, particularly if you are renting the home. Pick a theme and work with an interior designer to choose luxe accent pieces. Keep bright colors to a minimum and instead opt for soothing, cool colors such as muted blues or greens. Order furniture from companies that specialize in luxury vacation home decor.
• Make sure your homeowner’s insurance protects your investment. Insurance policies for vacation homes are different from those for primary residences. Read your policy thoroughly and ask questions about anything that is not clear. If there are certain things not covered by your policy, particularly concerning your renters, obtain deposits up front for any potential damage to the home. And in Florida, make sure your property is well protected in the event of a hurricane.

Florida has one of the most generous homestead exemptions in the country. This is significant for those purchasing luxury real estate in the Sunshine State as it can help save money on the investment. Property owners have two types of homestead exemptions to choose from: a homestead exemption for property tax purposes or a homestead exemption for the purpose of asset protection. Each one has specific requirements and it is important to note that just because you have one, does not mean you automatically have both.

Homestead exemption for property tax purposes gives a property owner a $25,000 reduction from the assessed value of the property, which can reduce the amount of a person’s property taxes by about $650 per year. However, this type of exemption is only available to homeowners who were the permanent residential property owners as of Dec. 31 for the year prior and submit an application for this exemption to the property appraiser's office by March 1.

Real estate lingo can be confusing, so if you are new to homeownership or simply unsure of homestead exemption rules, talk with your Elegant Homes agent and have him or her explain it to you in detail.