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SANIBEL REAL ESTATE HOME BUYERS GUIDE
Real Estate Tools and Information
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This type of property can be two (duplexes) or more units sharing common walls with separate one or two car
garages. The advantage is that it has the feel of a home and is one level. Some units can range up to 1800 square feet.
Note: common walls in Sanibel Florida are normally made of concrete block and are often more sound proof than standard framed walls. |
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This is a stand-alone single-family home that normally has smaller yards and has size limits normally around
2000 square feet because of the lot. Many developments that offer these homes provide standard floor plans from which to choose. Normally the lot is
included in the base price of the home, however there are often lot premiums based on location. |
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Unlike a town home these units are two-story but you live either upstairs or downstairs. Each has their own
garage, which could be single or two cars. The upstairs units normally have more square feet as they can extend above the garage and most upstairs
have vaulted ceilings. |
Carriage homes are the same as Coach Homes but normally larger units. The name coach and carriage are used interchangeably in many Sanibel Developments. |
High-Rises are 10 stories
or more. |
Mid-Rises are from 3-10 stories. |
Low-Rises are normally 2 stories. |
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This is the traditional Sanibel home as most know it. If the home is built in a development then they traditionally have standard floor plans or preferred builders. If the home is built on your lot outside a development you are open to select a builder. |
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You select the lot and contractor and the home is designed to your specifications. Single-family homes can also be custom built but the term custom is traditionally for higher end homes and features. |
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When you sell Sanibel real estate you have to pay capital gains tax on the gain from the sale of the property. The gain is caused by either taking depreciation
deductions for tax purposes or from the appreciation over time of the property.
The IRS Section 1031 Exchange offers the major exception to defer capital gains tax normally due on the sale. With the 1031 exchange you can sell an
investment property or business, and utilize the proceeds in the purchase of a property of equal or greater value without having to pay capital gains
tax. |
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| There are several benefits to consider with a 1031 Exchange. For example, you could use the proceeds to
buy bare land in Sanibel and construct a building on it, consolidate several properties into one to ease management and put all funds into a more valuable
property, take one property and diversify into several properties, and purchase commercial property from residential proceeds. |
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qualify you need to sell property that was held for business or real estate purposes for the purchase of other business or investment property.
However, YOU CANNOT sell investment property for the purchase of personal property, as this would not qualify for a tax deferral under section
1031. |
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To avoid any taxable gain you must reinvest all the Capital gains and purchase property of equal or greater value.
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From the date that your old/former property CLOSES, you have 45 days to declare one or more properties you will purchase.
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From the date of CLOSING of your old/former property you have 180 days to CLOSE one or more properties on your 45-day list
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The entity that is on the title of the old/former property must remain on the new property title.
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Selecting the right QI (Qualified Intermediary) is very important to the exchange process. There are no Federal or State laws that control who can be a QI.
However, there are laws that state who cannot be a QI. That includes your lawyer, CPA, bank, or family members, etc.
We would be happy to give you contact information for a qualified QI in Sanibel Florida. Because we help investors every week to purchase property with 1031 exchanges, we will
make it a positive experience for you. Be sure to fill out our property request form and indicate that you would like to purchase using an exchange, and in
the comments request QI contact information.
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The reverse exchange was established to defer the capital gains taxes in the same manner as the 1031 exchange. The reverse exchange in more complex and more
costly to set up than the standard 1031. You should consult a tax advisor and exchange professional to assist you.
The major difference in the Reverse vs. Standard 1031 Exchange is that you can purchase property for the exchange before you sell your old/former investment
property.
You must take title to the new property in what is called an EAT (Exchange Accommodations Titleholder) which is set up by the Exchange company. The EAT
takes title to the new property, holds or parks it until the old closes. Then the EAT transfers the new property to you.
The reverse exchange must be completed with 180 days from the date the EAT purchases the new property for you. |
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A qualified intermediary, sometimes known as an Accommodator,
can only handle the proceeds from the sale of the old/former property. You cannot personally touch the money nor can a friend, broker, employee, CPA, or
attorney to held the money for you.
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The information provided on this web site is for general informational purposes only and should not be relied upon to be legally correct. Be sure to contact the proper professional to assist you with a 1031 Exchange. |
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It is important before searching for a Sanibel
home to know exactly how much you can afford. Many people are surprised to
find out that they qualify for more money on a home loan than they thought
they could afford. Being pre-qualified means that you may have the
ability to receive a loan, and pre-approved means that you have
taken all the steps necessary to receive the loan.
Buyers
are in a much stronger bargaining position when making an offer on a home
if they are pre-qualified. The seller knows that the buyer is qualified to
purchase their home and is often times more eager to make the deal work.
Also, if two offers are presented at the same time to the seller, the one
that is pre-approved has a better chance of being accepted.
When
the buyer is pre-approved they can close on the home in a much shorter
period of time, which many sellers take into consideration in the
offer.
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A. Make every effort to clear
up any credit issues before making application.
B. Bring
with you your W-2 and your most recent pay stub showing year-to-date
earnings.
C. If you are self-employed, bring your last
personal tax return with all schedules. Also bring in the last two months
of any asset account.
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- Advance fees
- Up-front money collected by a broker for the listing of real property.
- Appraisal
- Professional service provided by a registered, licensed or certified appraiser or real estate licensee to produce an estimate of value.
- Appraised value
- Estimated worth of a property determined by someone qualified in valuation.
- Assessed value
- Worth established for each unit of real property for tax purposes by a county property appraiser.
- Binder
- A memorandum given subject to the writing of a formal contract for sale, usually acknowledging receipt of a portion of the down payment for purchase of real property.
- Broker relationship disclosure
- Establishes the relationship between a real estate licensee and customer.
- Buyer brokerage agreement
- An employment contract with a purchaser.
- Buyer's market
- The supply of available properties exceeds the demand.
- Closing
- Final settlement between the buyer and seller; the date on which title passes from the seller to the buyer.
- Commission
- Compensation paid to a broker or sales associate for successfully concluding a real estate transaction.
- Comparative market analysis (CMA)
- An informal estimate of market value to assist in arriving at an appropriate listing price.
- Condominium association disclosure
- Disclosure of protective covenants and association fees to be paid by the homeowner.
- Contract for deed
- A financing technique wherein the seller agrees to deliver the deed at some future date and the buyer takes possession while paying the agreed amount.
- Counteroffer
- A rejection of the original offer by proposing a new offer, thereby terminating the original offer.
- Deposit
- Earnest money or some other valuable consideration given as evidence of good faith to accompany an offer to purchase.
- Doc stamps
- An abbreviated term for documentary stamp tax.
- Documentary stamp tax on deeds
- Tax required on all deeds. The charge is based on the total purchase price.
- Documentary stamp tax on notes
- Tax required on all promissory notes. The cost is based on the face value of the note.
- Down payment
- A portion of a purchase price paid prior to closing the transaction. Earnest money may be part of or the entire down payment.
- Earnest money deposit
- A type of money that a broker may handle for others in the ordinary course of business; also referred to as a good-faith deposit or binder deposit.
- Executed contract
- An agreement in which the terms have been fully performed by all parties; a signed document.
- Executory contract
- An agreement containing some act or condition that remains to be completed.
- Hazard insurance
- Coverage by contract whereby one party undertakes to guarantee another party against loss resulting from physical damage to real property.
- Homeowners association disclosures
- Disclosure of restrictive covenants and association fees to be paid by the homeowner.
- Listing
- Written agreement between broker or sales associate and the property owner authorizing the sale of property.
- Multiple-listing service (MLS)
- An arrangement among members of a real estate board or exchange that allows each member broker to share listings with other members so that greater exposure is obtained and a greater chance of sale will result.
- Offer
- An intentional proposal or promise made by one party to act or perform, provided the other party acts or performs in the manner requested.
- Owner's title insurance
- Title insurance issued for the total purchase price of the property to protect the new owner against unexpected risks.
- Sale contract
- An agreement whereby one party agrees to sell and the other party agrees to buy according to the terms set forth.
- Seller's market
- The demand for available properties exceeds the supply.
- Special assessments
- Taxes levied against properties to pay for all or part of improvements that will benefit the properties being assessed.
- Title insurance
- A policy of insurance that protects the holder from any loss resulting from defects in the title.
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