Understanding the Costs of a Transferable Building Allocation

So, you want to build a home in Marathon, Florida, and you’re thinking about buying a Transferable Building Right (TBR) because you don’t want to wait forever in BPAS. However, you’re not sure what the cost will be.

Total Cost Breakdown of a Transferable Building Allocation

Well, you’re in luck because today we will cover the total cost of purchasing a Transferable Building Right (TBR) for the City of Marathon.

• The average cost of a Transferable Building Allocation in Marathon, Florida, has been around $200,000. However, in the past few months, we’ve seen more Transferable Building Allocations come on the market. As a result, prices have fluctuated between $170,000 and $220,000
  

• Check out the  TBRs for sale in Marathon (Please note, these listings are not on Zillow)

Additional Fees

• Now, with TBRs in Marathon, there is a $40,000 transfer fee. This fee is set by the City of Marathon, so there are no discounts on it!
  

• When you’re buying a TBR, you have to look closely at each one. Some transferable building allocations will indicate that the $40,000 transfer fee has already been paid. So, you could save some cash depending on the list price. However, some sellers just charge a higher list price, so there might not be any real savings.
  

Closing Costs

• The second thing you need to understand is that most sellers require buyers to cover ALL closing costs, including commissions. You may see language in the description stating “buyer to pay all closing costs and seller to net $200,000.”
  

• As always, commissions are negotiable. However, in Marathon, most real estate agents charge a 10 percent commission on TBRs. Not every agent charges this rate, so feel free to call us for more details. Since sellers typically request buyers to cover ALL closing costs and buyers have been complying, sellers have often agreed to the 10 percent commission.
  

Detailed Estimate

Here is an estimate of the cost of a Transferable Building Allocation at a sale price of $200,000:

• Contract sales price: $200,000.00
• Application Fee: $600.00
• Settlement Agent Fee: $2,000.00
• Recording Fee: $300.00
• Document Stamps: $1,400.00
• City Transfer Fee: $40,000.00
• Commission: $20,000.00

Total Estimate: $264,300.00

Finding the Right TBR

If you’re on the hunt for a Transferable Building Allocation, make sure to carefully review each one to understand the true costs involved. With numerous allocations on the market offering different scenarios, finding the most economical option can be a bit tedious. However, as your agent, we would be happy to handle this process for you.

Contact Us

If you have any questions about Transferable Building Allocations or building in the Keys, feel free to reach out anytime.

Prumo & Carden

Amy’s success as a Florida Keys Elite Agent and Diamond Award Winner is truly awe-inspiring. With over a decade of experience in the real estate industry, she has cemented her position as a trailblazer and pioneer. Her unwavering commitment to excellence is reflected in her impressive academic credentials, which include a Master’s Degree in Marketing and Management. Amy’s marketing programs are simply unmatched, ensuring that your property is showcased to the widest audience of potential buyers, thus guaranteeing maximum exposure.

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ROGO in Marathon, Florida

Marathon, Florida Facing Building Allocation Shortage

Marathon, Florida is nearing the end of its building allocations. (ROGO) Once exhausted, owners of vacant lots may resort to legal action against the city for denying them the opportunity to build on their properties.

Marathon and Monroe County Strike Deal

Marathon City and Monroe County have reached an agreement to prevent lawsuits. Marathon will temporarily borrow building allocations from the county.

Marathon initiated paperwork to request additional building allocations from the state. However, Monroe County preferred a comprehensive assessment of available buildable lots and infrastructure needs before proceeding. The county consented to loan allocations to Marathon on condition that the city postpones further requests from the state.

ROGO News Article 

Here is a link to the most recent news article where this was addressed

https://keysweekly.com/42/bpas-band-aid-marathon-monroe-county-outline-building-allocation-loan/

Is Borrowing Building Allocations a Good Idea?

Is relying on temporary borrowing of building allocations truly a viable long-term solution for Marathon’s development challenges? While it may stave off immediate legal action, it doesn’t guarantee immunity from potential future lawsuits if the state doesn’t allocate more permits. Additionally, what about property owners in line for ROGO on their vacant lots in the county? With a limited number of permits available, borrowing allocations could negatively impact their opportunities for development. Considering these factors, is temporary borrowing a sustainable approach, especially if the state fails to allocate more permits in the future?

What are your thoughts on Marathon temporarily borrowing building allocations from Monroe County to address its shortage? Do you believe this is a viable solution for the city’s development challenges, or do you foresee potential drawbacks in the long term?

Prumo & Carden

Amy’s success as a Florida Keys Elite Agent and Diamond Award Winner is truly awe-inspiring. With over a decade of experience in the real estate industry, she has cemented her position as a trailblazer and pioneer. Her unwavering commitment to excellence is reflected in her impressive academic credentials, which include a Master’s Degree in Marketing and Management. Amy’s marketing programs are simply unmatched, ensuring that your property is showcased to the widest audience of potential buyers, thus guaranteeing maximum exposure.