Do your homework before purchasing homes in the U.S

Savvy Canadian homebuyers purchasing real estate in the weak U.S. market can find excellent value, say real estate experts, provided they perform due diligence.

"For Canadians, who represent the largest group of foreign buyers in Florida, it's like a time machine, with real estate prices back to 2001 levels," says Cameron Roach, author of Buy Florida, a guide for Canadian buyers looking south.

However buyers need to study the market instead of jumping at low prices. "You might get excited to find a property selling at half its peak value, but what if surrounding properties have fallen by 60 per cent?" he says.

Foreclosures and distressed real estate may look appealing, but Roach says that market resembles the Wild West, often imposing longer closing times and more legal hassles. In distressed condominium buildings, buyers may find themselves on the hook for higher fees if other units are foreclosed.

Roach recommends engaging a licensed Florida buyer's agent to perform fieldwork before buying.

Lesley Dolby is a real estate broker with Dolby Properties in the Orlando area. Canadian clients are a specialty of hers.

"Anyone with a pulse can find a property for sale," she says. "It's really all about working with someone who knows the area intimately. Too many Canadians have attended seminars that tell them about US$30,000 properties in Florida, not having a clue that they're usually nowhere near desired areas and generally not in good shape. To get decent property in the Disney area for vacation homes or short-term rentals, you still have to pay between $100,000 and $200,000."

Attractive mortgage rates advertised to Americans are not open to Canadians unless handled through subsidiaries of Canadian banks. And a surprise to novice buyers is Florida real estate transactions are closed by title companies, not lawyers. But it's a myth that Florida imposes onerous property tax rates designed to discourage Canadians from buying up properties.

"There's no discrimination against Canadians," says Dolby. "Even Florida residents who own a property that is not their permanent residence pay a higher property tax rate, and an exemption is available to anyone who lives permanently in that property, no matter their citizenship."

Misinformation also pervades the Arizona market says Rick Morielli, a Canadian real estate broker with Canix Realty, a Phoenix-based realtor geared to Canadian clients.

"Canadian buyers seem to get old news and bad news," he says. "We get asked a lot whether houses have had cement poured down toilets by foreclosed owners. What is true is that in Greater Phoenix, real estate is moving briskly ... About 15 per cent of buyers in the last quarter were Canadian and some of them are buying properties here for the price of a Vancouver parking spot."