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Commercial Real Estate

Frequently Asked Questions about buying or selling a Residential Property

What standards do appraisers use to estimate value ?

Where do I get information on filing consumer complaints ?

How do I reach the IRS?

Where do I get information about finding a real estate attorney?

How do I get a list of architects?

What are the respective advantages of 15 year and 30 year loans?

What is the difference between market value and appraised value?

What home-buying costs are deductible?

What contingencies should be put in an offer?

How are the rates set for seller financing?

What are the different steps to sell your home?

What are the most common mistakes that homeowners make to sabotage the sale of

   their home ?

What are the different steps to shop for a home? 

How can I hold title on my property?

Buying a Residential Property

Selling a Residential Property

Requesting a Comparative Market Analysis

FAQ

 

What standards do appraisers use to estimate value ?

Appraisers use several factors when estimating value including historical records, property performance, condition of the property and indices that forecast future value.

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Where do I get information on filing consumer complaints ?

Consumer Federation of America, 1424 16th St. N.W., Suite 604, Washington, DC 20036; (202) 387-6121.

United Homeowners Association; 1511 K St., N.W.; Washington, DC 20005; (202) 408-8842.

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How do I reach the IRS ?

To reach the Internal Revenue Service, call (800) TAX-1040.

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Where do I get information about finding a real estate attorney... ?

To find a real estate attorney, contact your local bar association, which may offer local referral services.

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How do I get a list of architects ?

For information on architects, contact the following: American Institute of Architects, 1735 New York Avenue, N.W.; Washington, DC 20006 or call (202)626-7300.

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What are the respective advantages of 15 year and 30 year loans ?

The 30-year fixed rate mortgage remains the standard mortgage, with an array of valuable benefits designed especially for buyers who expect to stay in their homes for a long time. Because the borrower pays more interest than principal for the first 23 years, the tax deduction is substantial. And as inflation causes income and living expenses to increase, your unchanging monthly mortgage payments account for a relatively smaller portion of income as the years go by.

As you'd expect, a 15-year monthly mortgage means higher monthly payments than an equivalent 30-year loan...but not much higher as you may think. At the same rate of interest, payments on the 15-year mortgage are roughly 20-25% higher than a loan that takes twice as long to pay off. And one of the benefits of choosing a 15-year mortgage is that you can generally get a lower interest rate for an otherwise similar loan. Another advantage is faster equity build-up because a larger portion of your early payments are going to pay off principal. This makes the 15-year mortgage an ideal alternative for couples approaching retirement or anyone else interested in owning their home free-and-clear as quickly as possible.

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What is the difference between market value and appraised value ?

Appraised value is a certified appraiser's opinion of the worth of a property at a given point in time. Market value is what price the property will be at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties performed by a real estate agent or broker.

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What home-buying costs are deductible ?

Any points you or the seller pay for your home loan are deductible for that year. Property taxes and interest are deductible every year. But while other home-buying costs (closing costs in particular) are not immediately tax-deductible, they can be figured into the adjusted cost basis of your home when you go to sell (any significant home improvements also can be calculated into your basis). These fees would include title insurance, loan-application fee, credit report, appraisal fee, service fee, settlement or closing fees, bank attorney's fee, attorney's fee, document preparation fee and recording fees.

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What contingencies should be put in a offer ?

Most offers include two standard contingencies: a financing contingency, which makes the sale dependent on the buyer’s ability to obtain a loan commitment from a lender, and an inspection contingency, which allows buyers to have professionals inspect the property to their satisfaction. A buyer could forfeit his or her deposit under certain circumstances, such as backing out of the deal for any reason not stipulated in the contract. The purchase contract must include the seller's responsibilities, such things as passing clear title, maintaining the property in its present condition until closing and making any agreed-upon repairs to the property.

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How are the rates set for seller financing ?

The interest rate on an owner-carry loan is negotiable. Ask your agent to check with a lender or mortgage broker to determine the current rate on institutional first (or second) loans. Seller financing typically costs less than conventional financing because loan fees (points) typically aren't charged. 

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What are the different steps to sell your home ?

  • Step 1- Find the Real Estate Professional who’s right for you. ( Depend on your Realtor until you close the sale.)
  • Step 2- Set a reasonable price on your house.
  • Step 3- Make your property look its best.
  • Step 4- Show your house in its best light.
  • Step 5- Formulate with your broker at DEL’VALLE INTERNATIONAL REALTORS a marketing plan.
  • Step 6- Consider helping the buyer financially.
  • Step 7- Don’t be discouraged (it doesn’t happen if you set the right price) .

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What are the most common mistakes that homeowners make to sabotage the sale of their home ?

  • 1- Asking more than they should, and then getting less.
  • 2- Trying to second-guess the real estate agent that you have selected.
  • 3- Playing “Helpful Henry" when prospective buyers come to visit or call. (giving improper or personal comments)
  • 4- Pretending that subtleties in decor don’t matter, when they do.
  • 5- Decluttering . (very important) Remember the prospect has to think this is his/her future home.

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What are the different steps to shop for a home?

·         Step 1- Where to star: Finding a Real Estate Professional. (be loyal and trustful with him/her)

·         Step 2- How much home you can afford?

·         Step 3- Making your list. (Needs and Wants)

·         Step 4- Choosing the right neighborhood.

·         Step 5- Looking for the extras (space, privacy, style )

·         Step 6- Making an offer.

·         Step 7- THE HOME STRETCH (the sales agreement, inspections, and your real estate attorney to check all the legal aspects of the transaction)

·         The final step: Securing financing for your dream home.

The last advice. Being prepared and for following those 7 steps in shopping for a home, you should be able to avoid many of the pitfalls that can make looking for a home frustrating and confusing. (GOOD LUCK)

Be sure to contact DEL’VALLE INTERNATIONAL, REALTORS to assist you to find your DREAM HOME!

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How can I hold title on my property ?

In 4 different ways (Title Options)

Tenancy by the Entirety. Ownership of the homestead property automatically goes to the surviving spouse if one dies. Even if a wife or husband is not named on the title, Florida law automatically presumes the spouse has an inherent right to claim the property. The law also prohibits one spouse from getting rid of the house without the consent of the other.

Joint Tenancy with Rights of Survivorship. When an owner dies, his or her interest in the property goes to the other joint tenant, not to children, heirs or people mentioned in a will. Some couples and others who are not married but in a long term relationship often choose this option to ensure the partner is left with the house.

Tenancy in Common. If the owner dies, his/her or whomever probate court decides. This option often is used by live-in couples, roommates or business partners who buy property together. Tenancy in Common is presumed when unmarried people buy property together, unless they clarify that they want joint tenancy with rights of survivorship.

Life Estate. A life estate planning maneuver that keeps property in the owner’s names until they die, when it immediately transfers to a relative or someone else they have named. This option is primarily used by elderly parents who want their children to assume the property upon their deaths. The automatic transfer protects the property from creditors.

For more information consult a Real Estate attorney.

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