Frequently Asked Questions: Buyers

PROFESSIONAL REPRESENTATION & NEW (August 2025) RULES

Q: Why do I have to sign an Exclusive Buyer Brokerage Agreement (EBBA) before we look at a house? 

A: Current national and Florida regulations now require a written agreement before a realtor can take you on a private tour (including virtual tours). This agreement defines our partnership, the services I provide, and how I am compensated, ensuring you have professional advocacy from day one.

Q: Am I responsible for paying the commission? 

A: Commission is negotiable. While many Tampa sellers still offer a cooperative commission, your EBBA outlines that the buyer is responsible for the agreed-upon fee if the seller does not cover it. We will always confirm the compensation for a specific home before making a purchasing decision.

Q: Can I cancel the agreement if I’m not happy? 

A: Yes. My agreements are built on trust. While both parties must agree to a termination, I prioritize your satisfaction. It is essential to interview your realtor and feel confident in their expertise before signing.

Q: Does this cover only specific neighborhoods or the entire state of Florida?

A: It should be written for a specific geographic location (like the counties you want to search in) so both parties are clear. 

Q: What is a "Protection Period," and how long does it last?

A: This is a period after the contract ends where you may still owe a commission if you buy a home without the agent who originally showed you. If left blank, the agreement defaults to 30 days. 

Q: Are there any "Retainer Fees" or "Broker Transaction Fees" in addition to the commission?

A: There may be. This should be outlined in the agreement or in other disclosures provided to you. 

Q: Does this agreement apply to New Construction and FSBO (For Sale By Owner) homes? A: Yes. This agreement ensures you have professional representation regardless of who is selling the home. For new construction, it is vital that your agent accompanies you - or "registers" you - on your very first visit to a model home or community (including website visits). This ensures the builder recognizes your right to representation and covers the professional fee outlined in your EBBA.

Q: How will you represent me? Single Agent or Transaction Broker?

A: While Florida law assumes a "Transaction Broker" role by default, I choose to represent you as a Single Agent. This is the highest level of service allowed by law, meaning I am your exclusive advocate - dedicated to protecting your interests and negotiating the best possible outcome for you. The only exception is if you fall in love with a home that I (or another agent in my office) represent. Since I can’t "compete" against myself, I would then transition to a Transaction Broker. In that specific scenario, I move into a neutral role to ensure the deal is handled fairly for everyone, while still keeping your private information strictly confidential.

FINANCING & CLOSING IN TAMPA

Q: How much "cash on hand" do I really need (excluding down payment)? 

A: To get a firm number, speak with your local lender however as a rule of thumb in the Tampa market, plan for 2% to 5% of the purchase price for closing costs. Unlike other states, Florida has high "prepaids" – depending on your lender you may pay a full year of homeowners insurance and several months of property taxes into escrow upfront.

Q: What is an Earnest Money Deposit (EMD)? 

A: This is often called a "Good Faith Deposit." It is the money you put down immediately after a seller accepts your offer to prove you are serious about buying the house. Think of it as a security deposit for the contract.

Q: What is the standard Earnest Money Deposit (EMD) in Tampa? 

A: Expect to put down 1%–3% of the price within 3 days of an accepted offer. This "Good Faith" money is held by a neutral title company or law firm and is credited back to you at closing. 

Q: How much of a down payment do I really need?

A: There is a common myth that you need 20% of the purchase price as your down payment, but that’s not always the case. While 20% is great for avoiding private mortgage insurance (PMI), many people buy homes with as little as 3% down using various loan programs. If you are a Veteran, you may even qualify for 0% down through a VA loan. The "right" amount depends entirely on your personal situation and goals, and I recommend you speak with a local lender to figure out the best loan program for you. 

Q: Are there local programs to help with the down payment? 

A: Yes. There are often programs offering assistance for income-eligible buyers. Speak to your lender about these programs. 

Q: What credit score do I need for a mortgage? 

A: This depends on you and your personal situation. I will connect you with several local lenders so you can have that conversation with a specialist. 

LOCAL TAMPA MARKET NUANCES

Q: What is an HOA fee and what does it cover?

A: A Homeowners Association (HOA) fee is a recurring payment made by homeowners to the association either monthly, quarterly or annually, to maintain the community’s standards and shared spaces. While a CDD typically pays for the "big" infrastructure like roads and master utilities, the HOA focuses on the day-to-day lifestyle, such as landscaping common areas, community pools, gated security, and enforcing neighborhood rules to help protect your property value.

Q: What is a CDD fee? 

A: Community Development District (CDD) fee is a tax added to your annual non-ad valorem tax bill to pay for infrastructure (roads, amenities) and not all communities have one. It is separate from your HOA fee.

Q: What is the Homestead Exemption, and how do I get it?

A: The Homestead Exemption is a powerful way to lower your taxes on your primary residence. In Florida, it can reduce your home’s assessed value by up to $50,000, which lowers your annual tax bill. Even more importantly, it triggers the "Save Our Homes" cap, which limits any future increases in your assessed value to a maximum of 3% per year, no matter how fast home values rise. You must own the home and have it as your primary residence by January 1st, and you must apply through the Property Appraiser’s office by March 1st.

Q: What is "Portability" (Save Our Homes)?

A: Portability is a unique Florida benefit that allows you to "move" your tax savings from one Florida homestead to another. If you’ve built up a significant difference between your home’s market value and its assessed value (the "Save Our Homes" benefit), you can transfer or "port" that tax savings - up to $500,000 - to your new home. This is a huge advantage because it can significantly lower the tax bill on your next purchase, making it much more affordable to upgrade or downsize within the state.

Q: Will my property taxes go up after I buy the home? 

A: Yes. Under Florida law, a home is reassessed to market value on January 1st of the year after you buy it. You should use the Hillsborough County Tax Estimator to project your future taxes, as they will likely be higher than what the current seller is paying. You should ask your lender to project these by using the highest number to be sure you can afford the mortgage payment the following year BEFORE making a purchasing decision. 

Q: Will my mortgage payment stay the same every year? 

A: Unlikely. Even with a fixed-rate loan, your total monthly payment will fluctuate due to rising homeowners’ insurance premiums and property tax reassessments in Florida which will lead to an annual increase in the escrow portion of your payment. Your mortgage servicer will perform an “escrow analysis” after the property taxes are paid in November and give you the option to make a one-time payment or increase your monthly mortgage payment amount to cover the difference. 

Q: How do flood zones affect my monthly payment? 

A: If a home is in a high-risk zone (A or AE), lenders require flood insurance, which can add to your monthly mortgage payment. It’s a good idea to request an Elevation Certificate during your inspection period to determine your exact rate. If the home is in an “X” flood zone, a voluntary flood insurance policy is still a good idea, and this is usually much less expensive than a mandated policy. Check with your insurance broker for more information. 

CUSTOM HOME BUILDING & NEW CONSTRUCTION

Q: What is the first step in building a custom home in Tampa? 

A: Secure a buildable lot. You must verify zoning and drainage with the county. Due diligence periods on vacant land tend to be 45-60 days or longer so you can perform inspections to determine the suitability of the lot. Many custom builders will help you evaluate a lot before you buy it.

Q: How long does the custom build process take? 

A: Plan for 12 to 18 months or more depending on how long permitting takes, the complexity of the build, Florida storm season and material availability. 

Q: Is a "Builder Deposit" the same as a Down Payment? A: No. Custom builders often require a 10-20% non-refundable deposit upfront to cover plans and permits. This money is usually credited toward your total down payment at the final closing.

Q: What should I know about buying a new construction home in a planned unit development in Tampa?

A: Pay attention to the building phase and when the community will be completed - buying a new construction home should not be for a short-term purchase. Be sure to understand the builder process, deposit requirements and appraisal terms and cancellation policy prior to deciding to buy. 

Q: Should I have my new construction home inspected along the way? 

A: It’s a very good idea to have various inspections during the construction process. Even though the builder will have to have county inspections, you should always hire your own inspectors so any issues can be addressed prior to the next phase in the process. Builders have rules about who can inspect and when inspections can be performed, so be sure to check prior to purchasing. 

Q: How does a construction loan differ from a regular mortgage? 

A: A construction-to-permanent loan (C-P) is a short-term loan (usually 12 months) that pays the builder in "draws" as milestones are met. Once the home is finished, it "converts" into a standard 30-year mortgage. Qualified buyers can include the land purchase in their C-P loan – talk with your lender to determine if this type of loan will work for you. 

Q: Can I finance vacant land if I’m not ready to build right away?

A: Yes, depending on your personal situation, but it works differently than a standard home loan. If you aren’t ready for a C-P loan yet, you can look into a Land or Lot Loan. Because there is no house to serve as collateral, lenders typically see these as higher risk. As a result, you should expect a higher interest rate and a larger down payment. Some specialized lenders offer "Lot Loans" with the intention that you will eventually build there. Once you are ready to start construction, you can often refinance that land loan into the Construction-to-Permanent loan mentioned above. It’s best to discuss with your local lender to see what financing options might work for you. 

Q: Can I make changes once construction starts? 

A: Yes, via "Change Orders," but they are expensive. Many Tampa builders charge by “cost plus” – how much the change costs plus a percentage for overhead, or a flat fee plus the cost of the material for any changes made after the structural permits are filed.  

NEXT STEPS FOR BUYERS

Ready to start your Tampa search? [Click here to download my 2025 Buyer's Checklist] or [Schedule a 15-minute Strategy Call] to discuss your next move.