- BUYERS
Purchasing Real Estate
Five steps to purchasing Real Estate:
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1. KNOW WHAT YOU WANT - There are many things
to consider when purchasing a property: your price range, timeframe,
community and lifestyle.
2. CHOOSING A REALTOR - A REALTOR is a member
of the National Association of Realtors, which adheres to a
strict Code of Ethics, Training and Education. Experience matters,
especially when it comes to your real estate needs. Let me put
my experience, knowledge and expertise to work for YOU.
3. CHOOSING A LENDER - Contact a Hilton Head Island
area mortgage lender prior to starting your search for real
estate. Using a mortgage company in the local area in which
you are purchasing real estate property, assures that they will
have optimal knowledge of property values or lending requirements.
Take the time now to determine your loan amount and the loan
package that best suits your needs. If you need recommendations
for mortgage companies in the Hilton Head Island area, I would
be happy to assist you or just look on my meet the team page.
4. CHOOSING A HOME & MAKING AN OFFER - Will
your real estate purchase be your primary residence, second
home, or investment property? I will work with you to locate
properties that meet your criteria. Once you have decided on
a particular property, a written contract with your offer will
be submitted to the Seller of the property. The Seller in turn,
will either accept your offer, make a counter offer or decline
your offer. It is important to be available to me so that any
changes to the contract can be reviewed quickly.
5. CLOSING - Once you have a fully executed contract
(all parties have reached an agreement and have signed the contract),
it is time to choose an attorney to represent you. Ask me for
recommendations. If a home inspection is part of your contract,
you (the Purchaser) will hire a licensed Inspector to perform
a home/villa inspection. The inspector will insure that all
heating, air conditioning, plumbing, electrical systems, fireplace,
appliances, pool and spa are in good working order, that the
structure is reasonably sound and the roof free of leaks. Your
inspector will send you a report stating the condition of the
home and the afore-mentioned items. If any of these items are
not in good working order at the time of inspection, you (the
Purchaser) with my guidance will submit a request for repairs
to the Seller. Once the Buyer and Seller have come to an agreement
on the repairs, the Seller then procedes in making the repairs.
The CL-100 (termite inspection) and any required repairs is
usually done at the Seller's expense. Your attorney will guide
you through the closing process and answer any legal questions
that you may have.
As Your Agent, I Will:
-- Assure that you see all the properties in the area that meet
your criteria.
-- Guide you through the entire home buying process, from finding
homes to look at, to getting the best financing.
-- Make sure you don't pay too much for your new home and help
you avoid costly mistakes.
-- Answer all of your questions about the local market area,
including schools, neighborhoods, the local economy, and more.
Before You Start Looking For Your New Home:
-- Check your credit rating. Straighten out any errors before
its too late.
-- Determine a comfortable monthly budget for your new purchase,
including down payment and monthly payment.
-- Find a loan program that meets your needs and get pre-qualified
(preferably pre-approved).
-- Choose a REALTOR® that you trust and who understands
your needs.
-- Determine what neighborhood best matches your needs.
-- Identify important features you need your new home to have.
- SELLERS
5 Steps to Selling Your Home
There are a few steps involved when selling a home
and dealing with a knowledgeable and local realtor
and attorney can help you have a smooth transaction.
Following are the 5 steps to selling your property:
1. PREPARING - There are some 5 million
existing homes sold every year, and while every transaction
can be different, every home owner wants to get the
most amount of money with the least amount of hassle
which is why you should consider dealing with Susan
Ochsner. One of the most important factors in selling
your home besides choosing your realtor is getting
your home ready to go on the market. I tell all our
clients that if you are going to ask "top dollar"
then your home needs to be in "top shape".
First, it is always a good idea to pay for a home
inspection to be done on your property because you
would probably be surprised about a lot of things
not right with your home. It could be electrical or
wood rot, but whatever the case, you should fix it
now instead of later. Next, if you have any painting,
carpeting, cleaning, or throwing out, take care of
it now. Your house needs to be clean. Think of yourself
as the "purchaser" and what you would like
to see in a home.
2. CHOOSING A REALTOR - A REALTOR is
a member of the National Association of Realtors which
adheres to strict Code of Ethics, Training, and Education.
It is also important for a REALTOR to be a member
of their local Association. Some people may choose
to speak with one realtor or some may choose to speak
to several agents. Ask them about the services they
offer. A REALTOR will discuss the list price of your
property based on recent sales and comparable properties
currently on the market. You may receive different
estimates, but that is okay. Make sure you understand
their opinion of why they think your house would sell
for a certain amount. Ask a REALTOR about their fees.
Usually fees are established by the marketplace and
not set by law and regulation. A listing agreement
is a contract that shows the broker's obligations
and outlines the terms under which your home is being
made available for sale. A listing term is usually
6 months to a year, but always negotiable. Allow me
to put my knowledge and international expertise to
work for YOU.
3. SETTING THE PRICE - List price is
key in selling your home. I always tell my clients
that list price should be based on comparable properties,
but also based on your motivation. A REALTOR will
usually have your home on REALTOR house tour, a day
where all the agents come to your home to see it for
potential clients. This is time where you can receive
feedback on your home. In most markets, you will know
in 30 days if you need to reduce your price.
4. MARKETING YOUR PROPERTY - It is
important to choose a REALTOR that knows how to market
your home, and more importantly, who to market it
to! Some marketing tools are to either have digital
streamline video or virtual tour done of your property.
These videos are then attached to your home so potential
buyers can review it online whether it is on realtor.com
or a realtor's own website. Make sure your REALTOR
has a website like this one. The internet is one of
the most important marketing tools for Sellers and
Buyers. Now, most REALTORS have more than 1 website.
See the other websites your property will be featured.
Direct mail is another important marketing strategy.
I usually send out "Just Listed" post cards,
flyers, and monthly community updates featuring many
properties. It is important to have a flyer/brochure
on your property so make sure your REALTOR plans on
having one. Local advertising is important, and I
have many marketing tools for this venue.
5. SELLING AND CLOSING - Once you receive
an offer on your home, you and your REALTOR need to
review the contract and the terms to decide if you
need to counteroffer in price or maybe just the terms
of the contract, or both. In a strong real estate
market when the supply is low, demand is high, a seller
may receive multiple offers. Sometimes the contract
offering the most money is not necessarily the best
offer. It may be best to accept an offer that is lower,
but has no financing contingency. There are many issues
to consider which is why it is best to let a REALTOR
negotiate the best offer for YOU, the SELLER. Once
you reach an agreement and have a fully executed contract,
it is time to choose an attorney to represent you.
Again, ask your REALTOR for recommendations. After
choosing an attorney, if it is in your contract, you
(the Purchaser) will hire a licensed Inspector to
perform a home/villa inspection to insure that all
heating, air conditioning, plumbing, electrical systems,
fireplace, appliances, pool and spa are in good working
order and that the structure is reasonable sound and
the roof free of leaks at the time of closing. Once
all the repairs are agreed upon and the loan commitment
letter has been received, a Wood Infestation Report
(CL-100) is provided to the Purchaser's attorney no
less than seven (7) days prior to closing. The CL-100
is usually done at the Seller's expense but not necessarily
anymore, and it determines if there is any wood destroying
infestation, termites, or structural problems. Once
you have reached an agreement on all repairs and the
CL100, and the purchaser has insurance, you are ready
to close on your property. At the Closing, it will
be determined what payments and credits the owner
should receive and what amounts are due from the purchaser.
For example, if the owner prepaid their taxes a few
months in advance, then the owner will be compensated.
In South Carolina, the Realtors do not have to attend
the closing, and in most cases the buyers and seller
do not need to attend since the process is so computerized
and automated. Once all the necessary paper work has
been signed & recorded with the local property
record offices, title has been transferred from the
Seller to Purchaser, and the Seller has been paid
for the home, keys are then given to the Purchaser,
and the Seller is on their way to their new home or
destination.
1031 Exchanges
Section 1031 of the Internal Revenue Code allows a property
owner to trade one property for another without having
to pay any capital gains taxes on the real estate transaction.
In most sales, a property owner is taxed on any gain
accumulated by the sale of the property. In an exchange,
the tax on the transaction is deferred until some time
in the future, usually when the new property is sold.
These exchanges are called "Tax Free" exchanges
or "1031 Tax Deferred" exchange.
A
1031 cannot be performed on your primary property but it can
be performed on investment property. The property must be
exchanged for "like-kind" property of equal or greater
value. The Exchanger must sell property that is held for income
or investment purposes and acquire replacement property that
will be held for income or investment purposes. One property
may be exchanged for more than one property. In a tax deferred
exchange, the Exchanger has 45 days from the date the relinquished
property closes to identify potential replacement properties.
The purchase of the replacement property must be completed
within 180 days after the closing of the relinquished property.
The
advantage of a 1031 is that the taxpayer may dispose
of property without incurring any immediate tax liability.
There is much more information on 1031 exchanges, so
if you would a free 1031 booklet, please email me at
yourhiltonheadagent@mac.com.
Detailed
Information on IRS Procedures
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