We buy houses in Fort Lauderdale — how does it work?

Direct Answer

Selling a home to a "We Buy Houses" company in Fort Lauderdale is a process where real estate investors purchase your property directly for cash, often in "as-is" condition. This method bypasses the traditional real estate listing process, meaning you do not need to make repairs, pay agent commissions, or wait for a buyer to secure a bank mortgage.

Key Details

How the Cash Purchase Process Works

The process of selling to a cash buyer in Fort Lauderdale typically follows a streamlined four-step path:

1. Initial Inquiry: The homeowner contacts an investment company with details about the property. Unlike a traditional sale, there is no need to stage the home or take professional photographs.
2. Property Assessment: The buyer performs a walkthrough. Because these companies buy "as-is," they are looking for the property's potential rather than its current condition. You won't be asked to fix leaky roofs or outdated kitchens.
3. The Cash sale: Within 24 to 48 hours, the buyer provides a firm cash sale. These offers are usually lower than the market value because the buyer takes on the risk of repairs and the cost of resale.
4. Closing: If accepted, the deal moves to a title company. In Florida, cash deals can close in as little as 7 to 14 days, whereas a traditional sale with a mortgage takes 45 to 60 days.

Current Fort Lauderdale Market Trends (2024-2025)

To understand if a cash sale is fair, you must know the local market. As of early 2024, the median sale price for a home in Fort Lauderdale is approximately $585,000, according to Redfin and Zillow data. This is an increase of about 6% year-over-year. However, homes are staying on the market longer—averaging around 56 to 62 days—which makes the speed of a cash buyer more appealing to those in a hurry.

Pros and Cons of Cash Buyers

• Pros: No repairs, no cleaning, no open houses, no realtor commissions (saving you ~6%), and a dependable closing date.
• Cons: You will likely receive 70% to 80% of the home's fair market value after the investor calculates repair costs and their profit margin.

FL-Specific Laws

Seller Disclosure Requirements

Florida has a landmark legal precedent known as Johnson v. Davis (480 So.2d 625). This ruling requires sellers to disclose any known facts that materially affect the value of the property which are not readily observable by the buyer. Even if you sell "as-is" to a cash buyer, you must disclose structural issues, mold, or unpermitted work that you are aware of.

The "AS IS" Contract

Most investors use the Florida Realtors/Florida Bar "AS IS" Residential Contract for Sale and Purchase. This contract is a standard form used across the state. It protects the seller by stating the buyer accepts the property in its current condition, but it also gives the buyer a specific "inspection period" (usually 15 days, though often shortened in cash deals) to cancel the contract if they find major issues.

Closing Costs and Taxes

In Florida, the seller is responsible for several specific costs:

• Documentary Stamp Tax: Florida Statute § 201.02 requires a tax on the transfer of real estate. In Broward County, the rate is $0.70 per $100 of the sale price.
• Title Insurance: While negotiable, it is customary in Broward County for the seller to pay for the owner’s title insurance policy and choose the title agent.
• Lien Search: Sellers must pay for a search to ensure there are no outstanding municipal liens or utility bills.

Fort Lauderdale Local Context

Broward County Clerk of Courts

All real estate transactions in Fort Lauderdale are recorded with the Broward County Clerk of the Circuit Court and Comptroller. You can verify if a buyer has successfully purchased and recorded other properties in the area by searching the Official Records on their website. This is a great way to vet the legitimacy of an investor.

Code Enforcement and Liens

Fort Lauderdale is strict about property maintenance. If your home has active code violations or "Daily Fines," these must be settled at closing. Cash buyers often specialize in these situations and may negotiate with the city to reduce the fines as part of the purchase process.

Local Market Speed

While the broader Florida market remains hot, Fort Lauderdale has seen an increase in inventory. According to the Broward, Palm Beaches & St. Lucie Realtors association, the "Months Supply of Inventory" has risen, meaning sellers have more competition. This often pushes sellers toward cash buyers when they cannot afford to let their home sit on the market for months.

What You Can Do Right Now

1. Check Your Equity: Call your mortgage lender to get an exact payoff amount so you know how much cash you will actually pocket.
2. Verify the Buyer: If you receive an offer, ask for a "Proof of Funds" letter from a bank. Real cash buyers will have this readily available.
3. Review the Title: Visit the Broward County Property Appraiser website to ensure your property records are accurate and there are no surprise liens.
4. Consult a Professional: Even in a cash sale, it is wise to have a Florida real estate attorney review the contract to ensure your interests are protected, especially regarding the 'as-is' clauses and disclosure forms.