New to Real Estate · Tampa, FL · Member since 2018 · 10 posts · 7 votes
6y
My house in Tampa, about a mile from the water, is a wood frame home and was built in 1890. Obviously some updating has been done, and I've have to do some additional maintenance on the wood frame, (tenting for termites every few years) but its still standing 130 years later.
Specialist · Winter Springs, FL · Member since 2009 · 1k+ posts · 747 votes
6y
If the seller is a lender who has taken title to the property the seller may be saying the property does not qualify for the seller to provide financing. I doubt the property has such insurmountable problems that there's not a lender out there somewhere who will lend you something secured by the property.
Real Estate Agent · NJ · Member since 2019 · 237 posts · 169 votes
6y
I think this is a issue unique to those properties and it is not reflective of building quality in Florida. If the houses are a total knockdown or unable to be habitable that is the only reason I can see this happening.
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
6y
If they're too old to insure, they can't get financed. Everything eats houses down here. Salt, mold, bugs, critters, gators, florida man, all of it. My Indiana house was built in 1890. I'd never do that down here unless it was an old St. Aug coquina house and I had a lot of cash coming in to maintain it.
Lender · Palm Beach Gardens, FL · Member since 2016 · 9 posts · 10 votes
6y
Seller could be saying that house needs repairs and that it won't qualify for traditional "bank" financing. It would need a fix and flip type lender. It could be that either the roof ( very important in Florida due to rain and hurricane threat" ) or structure ( frame house, old non-code windows) are not able to pass the collateral guidelines of most institutional type lenders.
If they're too old to insure, they can't get financed. Everything eats houses down here. Salt, mold, bugs, critters, gators, florida man, all of it. My Indiana house was built in 1890. I'd never do that down here unless it was an old St. Aug coquina house and I had a lot of cash coming in to maintain it.
Yes, that was the issue... The add on zillow said that I wont be able to get the house insured because its too old... The house was not that old, I think it was like 1940 or something like that...
Glendale, AZ · Member since 2017 · 1k+ posts · 238 votes
6y
Originally posted by @Account Closed:
Seller could be saying that house needs repairs and that it won't qualify for traditional "bank" financing. It would need a fix and flip type lender. It could be that either the roof ( very important in Florida due to rain and hurricane threat" ) or structure ( frame house, old non-code windows) are not able to pass the collateral guidelines of most institutional type lenders.
thank you!
as a lender do you see old homes being financed/insured in Florida?
Anywhere south from 1950...
Would you say block structures are insured/financed better than wooden on older homes?
I think this is a issue unique to those properties and it is not reflective of building quality in Florida. If the houses are a total knockdown or unable to be habitable that is the only reason I can see this happening.
Do you sell a lot of old buildings in Florida? Buildings that were build between 1890-1950?
Rental Property Investor · Orlando, FL · Member since 2017 · 34 posts · 8 votes
6y
It could be that the roof needs repair. Roofs in Florida wear off faster because of heavy rain storms. A 30-year roof may only last 20 years if it doesn't get damaged by a hurricane sooner. Termite is also a major threat especially to an old wood frame house. You may see concrete block houses selling 20+% more than wood houses of the same size. Knob and tube electrical in an old house may also be uninsurable.
Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
6y
Florida has a lot of different insurance rules than other states. There are all types of inspections to check for wind mitigation issues and so forth. Building codes have changed a lot and a house that doesn't meet the current codes is going to be more expensive to insure. I live in the neighboring state of Georgia and can't believe how different it is getting a property insured in FL compared to GA. A simple example of differences between the two states. In Georgia, the HVAC company plops down a plastic pallet and puts the AC condenser on it. In FL, it has to be anchored to a concrete slab that weighs a specified amount. This of course adds to the cost of an HVAC changeout. FL doesn't have state income taxes but they sure have lots of other types of fees and taxes that eats up that advantage in a hurry.
New to Real Estate · Tampa, FL · Member since 2018 · 10 posts · 7 votes
6y
My house in Tampa, about a mile from the water, is a wood frame home and was built in 1890. Obviously some updating has been done, and I've have to do some additional maintenance on the wood frame, (tenting for termites every few years) but its still standing 130 years later.
Rental Property Investor · Tampa, FL · Member since 2020 · 25 posts · 10 votes
6y
In March, I purchased a home built in 1924 in Tampa, FL and my first insurer cancelled the policy for the age of the home even though it has been renovated twice.
Rental Property Investor · Tampa, FL · Member since 2019 · 38 posts · 11 votes
6y
@Yolanda W Cuevas
We are on contract to buy a 1924 duplex. One insurance broker told us he’d have a hard time finding an insurer because of the age. We called another broker who didn’t seem to have an issue with finding a company. The inspection came back better than expected, but age in Florida seems to be more than a number.
Rental Property Investor · Tampa, FL · Member since 2020 · 25 posts · 10 votes
6y
@Daniel Sherman luckily we got through to close with the original insurer but as they started doing their investigation they determined that the partial cast iron piping was a problem, and then 2 months into the policy cancelled citing age of the house. We switched brokers and insurers and were able to get insurance.
My house in Tampa, about a mile from the water, is a wood frame home and was built in 1890. Obviously some updating has been done, and I've have to do some additional maintenance on the wood frame, (tenting for termites every few years) but its still standing 130 years later.
Lender · Palm Beach Gardens, FL · Member since 2016 · 9 posts · 10 votes
6y
Primarily what to be concerned about in Florida is the age and reliability of the structure and roof. We get a lot of rain, and there are tropical storm threats. CBS is most preferable. Wood frame houses and or houses with old non-code roofs are going to have tremendous insurance costs. The questions to ask are will the property pass a wind mitigation checklist which could substantially reduce insurance cost. Also impact resistant windows, or storm panels, can reduce insurance cost. Frame properties, or properties with old roofs that were completed before codes were stricter, are going to have higher insurance costs, and that factor should be factored into your investment decision
Glendale, AZ · Member since 2017 · 1k+ posts · 238 votes
6y
Originally posted by @Account Closed:
Primarily what to be concerned about in Florida is the age and reliability of the structure and roof. We get a lot of rain, and there are tropical storm threats. CBS is most preferable. Wood frame houses and or houses with old non-code roofs are going to have tremendous insurance costs. The questions to ask are will the property pass a wind mitigation checklist which could substantially reduce insurance cost. Also impact resistant windows, or storm panels, can reduce insurance cost. Frame properties, or properties with old roofs that were completed before codes were stricter, are going to have higher insurance costs, and that factor should be factored into your investment decision
Thank you so much, Bill!
Would you say that the houses that are made from concrete block will get insured with a big probablity? As long as the roof is not flat and there are no other crazy structural things, termites, etc...