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