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