5 Things to Consider When Building in Cape Coral, FL



You need to consider several things when building or buying a house in Cape Coral, FL. The goal is to become knowledgeable so that you avoid overspending, missed deadlines, and careless work. Although you can always buy an existing home, a perfect climate, sunny skies, pristine beaches, and gorgeous water make this area enticing for new construction….


1. Location

Choosing the right location is a huge decision. Building a house close to the water is typically most desired, but even when not right on the water’s edge, Cape Coral offers many outstanding options. In Cape Coral, FL, there are three primary lot options, including dry, gulf access, and freshwater, each with unique characteristics and value.

  • Dry Lot – An infill normal dry lot is the least expensive option. However, a dry lot located directly across from a gulf access lot does cost more.
  • Gulf Access Lot – Because this lot provides easy access to the water, it is the most expensive of the lot types, as well as the type that retains its value the best. Along with existing homes, there are numerous new construction homes with gulf access. Whether buying a house or building a house, inquire about bridges since they will dictate the size of watercraft that you can maintain at your dock.
  • Freshwater Lot – A lot on the canal connecting only to other canals is the most affordable option, whereas a lot with an end of canal, basin, or lake view is pricier.

2. Contractor

Hiring the right contractor is one of the most important considerations, whether this person builds more traditional-style homes or is a custom home builder. It is imperative to hire a contractor with years of experience and unparalleled expertise in house building.

To determine the qualifications of a contractor, ask for recommendations and conduct extensive research. In addition to checking with the Better Business Bureau and local Chamber of Commerce, read feedback from prior customers and look at reviews. Only then will you have a true understanding of the contractor’s abilities and personality.

3. Type of Home

When building a house, you need to consider style and square footage. With a custom home builder, you make key selections based on personal preference. This includes the materials used, landscaping, appliances, technology, and more.

The most common home styles in Cape Coral, FL, especially for new construction homes, are Contemporary, Spanish, and Mediterranean. Each of these styles is complemented by the environment and lifestyle in the Cape Coral area.

4. Cost of Living

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During the home buying process or when building a house, the cost of living should be factored in to your decision, since it can impact the actual amount of home that you can afford. For example, there is no state income tax in Cape Coral, FL. This is also a state with an abundance of fruit trees, such as mango, coconut, avocado, lemon, lime, papaya, grapefruit, orange, and banana. With a 12-month growing season, you can have several fruit trees planted in your own backyard, thereby saving on groceries.

5. Home Inspection, Closing Costs, & Insurance Coverage

You also need to consider the home inspection process, closing costs, and insurance coverage. For an existing home, always have a professional home inspection performed. An inspector will look for any defects or other problems throughout the home’s interior and exterior.

While an inspector cannot guarantee that problems will never arise, this does provide you with a snapshot of the property that could save you tremendous money in unnecessary repairs. During the home buying process, you and the seller can negotiate if issues are discovered by the inspector. The seller may reduce the price or agree to pay for all or a portion of repairs.

Closing costs in Cape Coral, FL, are more favorable to the buyer. If paying cash, whether buying or building a house, you will be charged nominal fees for filing, notary, and so on. However, for a mortgaged home, you have to pay a state tax of $0.35 per $100 of the mortgage. You will also be charged for an extra title and miscellaneous papers, and you must pay an intangible tax of $0.002 of the mortgage amount.

For both existing and new construction homes, insurance requirements are different based on the location of your home. In Lee County, you may need flood coverage, especially when purchasing a freshwater or gulf access lot. Even a dry lot that is close to a gulf access lot or canal may need protection in the form of flood insurance.

You are mandated to purchase wind damage insurance if located near the river or beach. In addition, as hurricane season approaches, the cost of insurance often rises. In the event of a threat from a hurricane or tropical storm, no new policies are written. Therefore, make sure to plan the closing accordingly.