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Real Estate tips for Orlando Area Home Buyers

Orlando Area Real Estate Considerations 
There are several issues facing home buyers in the Orlando Area Real Estate market that are worth noting and may be of special interest to the prospective home buyer relocating to the area from other sections of the country. We have put together a brief summary of the major issues.  We understand the concerns and specific nuances of evaluating, purchasing and owning a home in Central Florida, so please do not hesitate to call us with questions.

Termites
We have great warm weather in central Florida and the termites love our warm weather too. Termites cause millions of dollars a year in property damage in Florida alone, with 95% percent of it caused by subterranean termites.  These subterranean termites nest in the ground and gain entrance to a home by building mud tunnels or entering through crack as small as 1/64 of an inch. They need moisture to survive, the constantly travel between the home and the soil. Fortunately, there are several new preventative and remedial treatments such as Sentricon and Termidor.  Some builders are even using mesh screening and borate treated wood as a preventative measures. Most vulnerable of construction types are stucco covered wood frame homes with the stucco touching the ground. One can have the stucco cut above the grade level to make it easier to detect the termites' mud shelter tubes. The building codes now require the finished stucco to be above ground level.

Important Tip:  It's good to have a termite bond on any home, but particularly one that is wood frame construction.

Concrete Block vs. Wood Frame Construction
Concrete block construction is more termite resistant than wood framed construction, simply because there is less wood for the termites to eat. Concrete block construction is also considered to be more wind resistant, though wood frame can be built to withstand up to 120 mph winds.  In Central Florida most homes are now built with concrete block exterior wall construction, including up market homes.  In two story homes it is not uncommon to see the upper floor exterior walls framed with wood studs on top of the lower floor concrete block walls.

You should know that most homes that are said to be block construction have some wood frame elements. Even a home with all concrete block exterior walls will have wood roof trusses and plywood roof decking. While some builders use metal interior studs, usually wood studs are used for interior wall framing.

Many homes built in Florida today have a stucco exterior finish.  But what lies underneath?  Is it wood framing or concrete block? The easiest way to tell if the construction is frame or block is to look at the windows. With frame construction, the windows will almost always be flush with the wall. With block construction, the window will be recessed about four inches and sometimes will have a precast sill.

Flood Prone Areas
The 100 year flood plain is used to determine which regions fall in flood prone areas.  A Flood Plain Permit is a permit must be issued by the Storm water Management Division to those who want to build a structure on property located within a 100-year flood plain.

The Flood Plain Permit will ensure that the lowest floor elevation meets the requirements of the Flood Plain Ordinance which is one (1) foot above the 100-year flood elevation.

A 100 year storm is a storm event having 1% probability of being equaled or exceeded in any given year. In OrangeCounty this storm would produce 10.6 inches of rain in 24 hours.

Some of the finest homes and subdivisions in the area are built on swampland that was filled in to bring it above the 100 year flood plain. But the ground on which these homes sit never seems to want to dry out during the rainy season. This can cause a problem especially for homes using a septic system for sewage disposal. Septic systems can be very effective but they work better if they're on higher ground.

Many lakefront homes have part of the property within the 100 year flood plain but the pad the house sits on will be above it. Do you need flood insurance here automatically? It's up to you, but most people do not get flood insurance if they are not within the 100 year flood plain.

What is the correct flood zone designation for your property? In OrangeCounty, Fl, the Storm water Management Division will assist you with determining the correct flood zone designation, Phone 407-836-7990.

Heat Pumps
With our subtropical climate, you'll find yourself using both the air conditioning and heat during the winter months.  Most of the heating and air conditioning in today's Central Florida homes is by use of a heat pump. You can think of a heat pump as an air conditioner that works in reverse to provide heat.

In hot weather, the heat pump absorbs heat from indoor air and transfers it outdoors. Conversely, in cold weather, the process is reversed and the heat from the outside is transferred indoors. Here is a simple explanation:

Winter Heating
Heat is extracted from air by outdoor coil.
Refrigerant gas carries heat to indoor unit.
Circulating indoor air picks up heat and carries it throughout the home.
Summer Cooling
Heat is extracted from home's air by indoor coil.
Refrigerant gas carries heat to outdoor unit.
Heat is rejected to the outdoors.
Heat pumps are not as effective as the temperature drops below 40 degrees, but there are auxiliary heat strips to boost the heat during the cold snaps.

Sinkholes
Sinkholes are a common, naturally occurring geologic feature in Florida. Sinkholes are more common in times of heavy rainfall or severe drought due to severe changes in the underground aquifer causing collapses in the underlying limestone formations. They are rarely anything more than a nuisance, with very few causing substantial property and structural damage. Most Florida homeowner's insurance policies cover loss suffered from sinkholes.

Tax benefits buying a home   
1.   Property taxes and qualified interest are deductible on an individual’s federal income tax return. 
2.   A homeowner can exclude up to $500,000 of capital gain tax if married and filing jointly or up to $250,000 if single or filing separately.  The home must have been the taxpayer’s principal residence for the previous two years.    
3.   Since May 1997, there is no longer a requirement to purchase another home more expensive than the one sold.  Homeowners are free to buy up or down with no tax consequences assuming their gain is less than the allowable amounts.

Disclaimer: As with any tax issue, be sure to consult an accountant or tax professional for specific information and advice.