| In today's financial climate, real estate continues | | | | the home from electrical, to plumbing, to roof |
| to be a strong investment in many areas. | | | | conditions, and structural concerns. Once you |
| Educated buyers will always make the most out | | | | receive a report you may begin negotiations again |
| of the real estate market. These top ten tips to | | | | concerning repairs. Often a seller will agree to |
| buying real estate will help you enter into your | | | | make necessary repairs up to a specified financial |
| next real estate transaction with confidence. | | | | amount. When a seller lists their property "as is" |
| TIP #1: Hire the right Agent! | | | | they are letting you know that they are not willing |
| Hiring the right Real Estate Agent is invaluable. If | | | | to fix or replace any part of the property. If you |
| you are unfamiliar with the area, the realtor you | | | | are interested in an "as is" property and aren't |
| choose is your link to important information | | | | going to level the structure and build new, it is still |
| regarding schools, zoning, city and county | | | | in your best interest to obtain an inspection |
| regulations, neighborhood trends, building and | | | | report. Don't rely on the building inspector to look |
| remodeling and rental restrictions, and property | | | | for termites and other harmful pest problems. |
| values. Every city has different laws governing | | | | Although an inspector will see pest damage, it is |
| what can and can't be done with a property. | | | | best to have a separate termite inspection |
| Sanibel is one of the most beautiful cities in the | | | | conducted by a licensed company that |
| United States due in part to its strict building | | | | understands pests and can eliminate them. |
| codes and city planning. Having experienced many | | | | TIP #6: Obtain a Survey and Title Insurance! |
| aspects of real estate transactions on a personal | | | | Surveys will show easements, encroachments, |
| level, I understand situations and concerns of my | | | | and boundary lines of a property. By surveying a |
| buyers and sellers. I have been an island property | | | | home in an established neighborhood you are |
| owner for many years and have walked through | | | | assured that the property boundary lines have |
| several local real estate transactions myself. From | | | | been maintained. As homeowners add on the their |
| buying and selling lots to building new homes with | | | | properties over time with fences, sheds, docks, |
| local builders, to investing in rental income | | | | garages, and other structures, boundary lines can |
| producing properties and utilizing 1031 Tax free | | | | be crossed placing part of their structure on your |
| exchanges, I don't just sell island real estate; I | | | | property, or vice versa. Surveying vacant land is |
| invest in it because I believe there is no place in | | | | also important for same reasons as a home, plus |
| the world like Sanibel and Captiva. Whether you | | | | a survey will help determine the size home, or |
| work with me or someone else, finding the right | | | | amount of coverage the lot will allow. |
| realtor is invaluable. | | | | Title Insurance will protect your investment from |
| TIP #2: Utilize 1031 Tax Exchanges and Save | | | | another party claiming ownership interest in your |
| Money! | | | | property. Title searches will uncover liens placed |
| 1031 Tax Exchanges are tax free exchanges of | | | | on a property by vendors, or mistakes in past |
| investment property. Section 1031 of the Internal | | | | transfers of the title. The last thing you want to |
| Revenue Code is one of the last great tax | | | | discover when you're in the back stretch of a |
| shelters. If you purchase an investment property | | | | transaction is that there are encumbrances on the |
| of "like kind" within 180 days of the sale of a | | | | property such as tax liens, undisclosed owners, |
| similar type property, and you are willing to | | | | easements, or leases. Should a claim arise after |
| increase the amount of debt or value of the | | | | the purchase of a property, the title insurance |
| property, your capital gains taxes can be | | | | company is there to protect your ownership |
| completely deferred. Having just completed a | | | | interest in that property. |
| Reverse 1031 tax exchange myself, I believe in | | | | TIP #7: Be Realistic! |
| using this powerful tax shelter. Feel free to | | | | "Wants" and "Needs" are very different when is |
| contact me if you are considering using a current | | | | comes to real estate features. If every home |
| Sanibel, Captiva, or Ft. Myers property in a 1031 | | | | you see has the upgrades you "want" but |
| Tax Exchange, or want to purchase an | | | | exceeds the price range that you "need".... be |
| investment property that might qualify in the | | | | realistic. Who wouldn't love a large, oceanfront, |
| future for a 1031 Tax Exchange. A Reverse 1031 | | | | professionally decorated home or condominium, |
| Tax Exchange is the same exchange concept as | | | | with all the bells and whistles? Looking at |
| a 1031 Tax Exchange except you have purchased | | | | properties that exceed your price range is always |
| your replacement "like kind" investment property | | | | fun, but it can be extremely frustrating and |
| first, before selling the property to be exchanged. | | | | upsetting. Be realistic by looking at listings in the |
| Learn more about 1031 Tax Exchanges, and how | | | | price range you "need", keeping an eye out for |
| to use them to your financial advantage. Keep in | | | | that special property that has the potential to |
| mind that a neutral party must have act a | | | | evolve into the dream home you "want". Always |
| Qualified Intermediary. Real Estate may also be | | | | look beyond the furnishings, wallpaper, and floor |
| bought and sold through your self directed | | | | coverings to the architecture of the home; it is |
| retirement account. Whether you utilize a | | | | then that you will find properties with potential. |
| traditional IRA, Roth IRA, SEP, or company plans | | | | TIP #8: Use Contract Contingencies Wisely! |
| such as 401 (k) plans, Keogh, or profit sharing | | | | Contingencies in a contract for the purchase of a |
| plans, investigate your options. | | | | property are designed to protect you, the buyer! |
| TIP #3: Pre-qualify for Financing! | | | | This may seem silly to mention but it's important |
| Pre-qualifying for a loan may not seem that | | | | to remember that you need to work with the |
| important until you find your perfect paradise | | | | seller to come to an agreed upon contract. Valid |
| property at the same time as another buyer. | | | | contingencies to an offer are expected by the |
| When a property is priced to sell, it will usually | | | | seller. Common contingencies include building |
| attract more than one buyer. Once a seller | | | | inspections, termite and pest inspections, financing, |
| receives an offer, the two most important things | | | | and surveys. Many deals fall apart over small |
| they consider are ...the price, and the | | | | details, and easy to fix issues. Remember that |
| contingencies. For some sellers, a contract | | | | sellers are emotional about their property. If you |
| contingent on the buyer obtaining financing makes | | | | can see that major repairs or replacements need |
| them uncomfortable with the offer. Eliminate any | | | | to be made due to neglect or age, make |
| doubt in the mind of a seller, by pre-qualifying for | | | | allowances for this in your offering price. The old |
| the amount you may spend on the purchase of | | | | adage "Everything is negotiable" still holds true, |
| any property. This is especially important if your | | | | unless you upset the seller so much that they |
| dream property suddenly has a price reduction. | | | | refuse to work with you. Try to avoid listing |
| When this occurs other buyers might come into | | | | cosmetic changes you would like the seller to |
| the picture, that didn't look at that property | | | | make as contingencies. Cosmetic changes are |
| before it went "On Sale"! Often times a seller will | | | | subjective, be objective when writing a contract. |
| take a financially solid contract over a higher offer. | | | | TIP #9: Understand Regional Health and Safety |
| Be ready to put a deal together! | | | | Issues! |
| TIP #4: Location, Location, Location! | | | | An informed realtor will help you understand other |
| "Location, location, location", while overused as a | | | | health and safety issues that should be considered |
| real estate phrase, is still and always should be a | | | | when purchasing a property. Safety and Health |
| huge consideration to you as the buyer! If | | | | topics can include EIFS (Synthetic Stucco), indoor |
| something about the location of a property | | | | air quality, mold, radon, and lead paint. Many of |
| bothers you, be aware that the same location | | | | these require the seller to sign a disclosure |
| drawback will bother any buyer you hope to | | | | statement, while others may not apply due to the |
| attract when and if you need to resell the | | | | age, type of construction, or location of the |
| property! It's important to ask a lot of questions, | | | | property being purchased. |
| but often times it is difficult to know the right | | | | TIP #10: Ask for Information! |
| questions to ask if you are unfamiliar with the | | | | Don't be shy. When you have hired a realtor to |
| community. This is why it is so valuable to choose | | | | work for you, ask them for information. Do you |
| and hire the right real estate agent to represent | | | | want to look at all the properties in your price |
| your interests when buying a property. | | | | range, with the features you need, or just the |
| TIP #5: Get a Home Inspection! | | | | houses a realtor wants you to see? You deserve |
| Obtaining an inspection report performed by a | | | | all the information you need to make an educated |
| licensed professional building inspector of your | | | | decision. Can you imagine buying the home that |
| choice, can protect you from many defects that | | | | you felt was good for your family, only to find |
| are hidden from view. Why gamble with such a | | | | that you never received information on a similar |
| large financial investment? Let a professional | | | | property that is perfect for all your needs? I |
| building inspector point out areas to be fixed or | | | | provide many services to insure my buyers |
| replaced that aren't obvious. A good inspector will | | | | always have information at their fingertips. |
| give you a lengthy report covering all systems in | | | | |