Home Selling

Topics related to Selling Properties.

  • Sell
  • Select Your Agent
  • Tips for Best Results
  • Be Aware of Items that May Reduce Your Title Coverage
  • The Bottom Line On1031 Exchanges

Selling

Selling your home must take a reasonable process in order to obtain a fair market value. Valuation can be done by a qualified specialist. Some, make the error of getting wrong values from unsecured data websites; which in most of the cases results in home owner's price confusion.

We prepare for our sellers, among other sources: Market analysis, comparables, list of properties with similar features currently in the market and provide sugestions to imporve th property value in short or long time period.

Select your Agent

Selecting or choosing a real Estate Agent or Realtor is not easy due to different factors; but I found some suggestions that I share for your best consideration.
Real state realtors are not equal; each is unique with commision charges, service, advertising budget and even personality.
By choosing an agent/Realtor with a large advertising budget and company dollars to match, you might gain greater exposure to the largest number of buyers, which is ideal.

The most outstanding suggestions are the following:

  • 1.- Choose the realtor for the professional service that brings to you.
  • 2.- Choose the realtor for the plan of performance that brings you confidence in results.
  • 3.- Choose the realtor for the facts, comparables and market analysis that state the fair market value of your property.
  • 4.- Choose the realtor because you decided but not because they put pressure on you.

Any questions or concerns, feel free to contact us.

Tips for Best Results

Most of homeowners think their house has a lot of equity, but if they consider some valuable tips of care and improove thier propert, they might be closer to the reality of a fair market value.These simple upgrades can easily add thousands o dollars to your home's value:

  • Reframe your entry, remember "first sight impression".
  • Let there be light. Good illumination will make a bright home.
  • Make your kitchn inpire prospect buyers.This is the most popular place at home.
  • Give appliances a facelift. Good looking appliances catch the attention faster.
  • Buff up the bath. This place inspires cleanses.
  • Step upyour storage. This feature maes a bgger house all the time.
  • Loo for general home details, such as faucets, doorbell, under sinks, gardening, etc.

You have done a lot in your property, please enjoy the equity you have earned.

Be aware of items that may reduce your Title coverage

These exceptions negate some of the most important coverage in the Homeowner’s Policy including unrecorded liens, easements, encroachments and more.

This is what you do NOT want to see on your preliminary title report or policy cover:

  • Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records.
  • Any facts, rights, interests, or claims which are not shown by the public records, but which could be ascertained by an inspection of said land or by making inquiry of person in possession thereof.
  • Easements, claims of easement or encumbrances which are not shown by the public records.
  • Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records.
  • Unpatented mining claims; reservations or exceptions in patents or in acts authorizing the issuance thereof, water rights, claims or title to water.
  • Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown by the public records.

Avoid these exceptions and make sure to request the First American Title Eagle Owner’s Policy. The First American Eagle Owner’s Policy INCLUDES coverage for the Western Regional exceptions.

The Bottom Line on 1031 Exchanges

Below is a bottom line review of the basic requirements for successful tax deferral under Section 1031.

  • PURPOSE

    Defer payment of capital gains taxes

  • PROPERTY THAT CAN BE EXCHANGED

    Any real property

  • LIKE-KIND REQUIREMENT

    Properties must be like-kind

  • INVESTMENT REQUIREMENT

    Properties must be held for investment or in connection with a trade or business but do not have to be similar use (e.g., exchange raw land for an apartment building)

  • EXCHANGE TRANSACTION

    There are two parts to the transaction: “transfer” of relinquished property and “acquisition” of replacement property

  • FULLY DEFERRED EXCHANGE

    Many criteria must be met in order to have a fullydeferred exchange. Generally:

    • Taxpayer must buy replacement property(ies) of greater or equal value
    • Taxpayer must reinvest all proceeds from the sale of the relinquished property(ies)
    • Taxpayer must re-acquire debt equal or greater to debt paid off from the relinquished property (or replace the debt with additional cash)

  • DEADLINES

    There are two deadlines, both of which begin on the date of transfer of the first relinquished property:

    Replacement property(ies) must be identified within 45 days ■ The exchange must be completed by the earlier of:

     180 days from the date of the first relinquished property closing; or
     The due date of the taxpayer’s federal income tax return, together with all extensions

  • IDENTIFICATION RULES

    Replacement property must be unambiguously described, made in writing, and signed by the taxpayer. The two most common identification rules are:
    1) 3-Property Rule—up to three (3) properties can be identified without regard to their fair market value
    2) 200% Rule—any number of properties can be identified, as long as their combined fair marketing value does not exceed 200% of the fair market value of all relinquished property

  • SAME TAXPAYER REQUIREMENT

    The Taxpayer must acquire title to the replacement property in the same manner as title was held in the relinquished property. There are some exceptions to this rule such as entities that are disregarded for tax purposes

For additional information about the 1031 exchange requirements or to discuss your particular circumstances, please feel free to contact me.