As a growing housing market in the Sunshine State, Cape Coral is one of the most attractive in 2017. When the regional real estate market started heating up around 2003, urban planners sought various ways to finance the expansion requirements at they required increased utilities and municipal services such as sanitation, firefighting, and others.
At one point, residential development in Cape Coral outpaced the availability of basic utilities such as connections to water and electrical services. For this reason, some properties in Cape Coral have their own septic tanks and well pumping systems. This is not the case in the southeastern section of Cape Coral, which happens to be the oldest and most developed; homes in these subdivisions are connected to the electrical grid and the main water supply. Many homeowners in this section do not have to worry about special assessments, which are charged to finance the expansion of utilities and services.
Almost all homes located south of Pine Island Road has already been connected to the main water supply, but some may still be paying for special assessments. Typically, the expense is put on a payment plan. However, there is also a full payoff option. It is, therefore, important when shopping for homes to find out about this extra expense, if it has been paid, and who will be responsible for it if it hasn’t. Expansion in the next few years is planned just north of Pine Island Road, first towards the West and then the Northeast section south of the Yellow Fever Creek Preserve. See map here.
The Cost of the Cape Coral Assessments
Depending on the property and its location, the water, sewer and electricity assessments may cost more than $20,000. Paying for these assessments is very similar to paying for property taxes. Cape Coral is not the only Florida housing market that features these assessments; other municipalities may handle them in different fashions, but these public works are ultimately paid for by homeowners.
When evaluating Cape Coral real estate listings, prospective home buyers may notice that the property description may include the phrase “all assessments in and paid for,” which means that the sellers have already satisfied the costs. In some cases, the property may still be connected to a well pumping system, but the connection to the water main will likely be forthcoming.
When Cape Coral homes are listed for sale with special assessments still pending, this can become part of the price negotiation strategy between buyers and sellers. In this case, it is important to deal with professional real estate agents whose ethical commitments will preclude them from trying to hide the existence of pending assessments. At any rate, the assessments will be revealed when the mortgage application is submitted to the brokers for approval and processing as they will be listed on the disclosure forms approved by the Consumer Financial Protection Bureau in recent years.
Assessments that are pending payment and have been financed can be made part of the monthly escrow payments collected by the mortgage servicing entity, or they can be part of the prepaid closing items. Naturally, real estate listings that have no pending assessments tend to be more attractive to buyers, but smart realtors can also ask for seller concessions to bring the sales price down.
The Cape Coral City Council reviews assessments a couple of times per year. In 2016, for example, a fire service assessment was approved amounting to no more than $122.60 per parcel.
Cape Coral Mortgage, Inc.
3512 Del Prado Blvd. S.
Cape Coral, Fl. 33931
(239) 540 5555