Don’t Get Stuck with the Water Bill When Selling Your Home





Recently, I was at a closing with a client who was selling his investment property. One of the charges on the closing statement was $1,800 for the water bill that the tenant hadn’t paid. During this process, we learned a few things that will help you save money in the future.

First of all, an unpaid water bill is tied to the property, not the account holder. In other words, if you have a renter who doesn’t pay the water bill, that bill will eventually be tied to the property.

Upon the sale of the property, any unpaid water bills are then passed to the owner of the home. So, buyer beware - if you’re buying a rental property (or any property) and there is an unpaid water bill from the former tenant, you will get stuck with the bill and you won’t know about it until it’s time to close on the property.

When my client tried (unsuccessfully) to remove the $1,800 bill, the Miami Department of Water and Sewage told him that there was an additional $2,600 of unpaid water bills. He was advised to look for a leak. The Water and Sewage Department only recognizes two reasons for a high water bill: usage or a leak.

If you have a water leak, you can negotiate some of the bill payment. However, if there is no leak and the high bill is due to usage, you are responsible for the full payment. You may need to “create” a water leak and get a plumber involved if you want to negotiate with the Water Department (which does have a system to verify leaks).

“
Put the water bill in your name
 so you have more control
 of the situation.
”

The Water Department will let bills accumulate, and tenants have ways to get out of paying their water bills. To avoid any issues with rental properties, make sure the water bill is in your name and then just pass it along to the tenant. That way, you know if the bill is not being paid, you will have a tighter grip on the situation, and you can terminate the tenancy.

If you have any questions, give me a call or send me an email. I would be happy to help you!
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What Are the Hot Price Points in Miami?





If you listen to the news, real estate is this unstoppable juggernaut that’s doing better than ever. In a sense it is, when compared to the market crash of 2007. However, not all market segments are behaving the same way.

In general, the market is a bit soft for sellers, meaning it’s slightly favoring buyers. Prices aren’t going up quickly, properties are selling for less than asking price, and it’s taking them longer to sell. Some areas in Miami have more homes available in the $300,000 and over range. However, there is one exception to this general market condition.

“
In general, the market is a 
bit soft for sellers.
”

If you’re looking at homes priced below $250,000, the market is still really hot and it’s hard for buyers to find properties. A big reason for this is because a lot of the homes in this segment are townhomes or condos. Most of these properties don’t qualify for financing unless a buyer can give a 25% down payment in addition to closing costs. That’s pricing a lot of people out and forcing them to instead look at single family homes.

There are a ton of qualified buyers looking for homes in the $250,000 and below range. Any time a single-family home comes on the market below $250,000, it gets multiple offers. Usually in the double digits.

What does this mean for the buyer? Go as fast as you can to a good property when you see it. Don’t try to lowball the seller, either. It won’t work. If you’re a seller, you’re going to have to be competing if you are priced above $250,000, and you need to know the market is shifting for your price segment.

If you have any questions for me or if you’re looking to buy or sell in Miami, I would love to help out. Just give me a call or send me an email.
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