Sellers Archives | Sunshine Guru

Do You Really Need A Lockbox When Selling Your Home?

I had a conversation with a colleague this week about using lock boxes. She hadn’t been able to convince her seller that using a lock box was advantageous and whether having a lockbox on her door was even necessary to sell her home. Those of you that don’t know, a lockbox is an apparatus that usually holds your front door key securely inside; your listing agent will attach it (the lockbox) in a convenient location somewhere on or near your home, making it very easy for the buyer’s agent who wants to show your home to gain access. To get the key out of the lockbox, a Realtor would use an electronic key or an app on their smart-phone to access the lockbox.

In the South Florida market, Real estate agents have become very accustomed to lockboxes and almost expect them for the convenience they afford. Often agents will schedule several homes to show with their buyer and will want to have the ability to quickly go from one property to another without having to worry about keys. If your home is one of the few properties without a lockbox, it puts a monkey wrench in the flow of things. Homes without lockboxes run the risk be tagged “Difficult to Show.”

Without a key on site (in a lockbox) there are usually only few other ways to gain access to your home; none of which agents care for:

Seller has to be home to let you in
The buyer’s agent has to go to (listing) agent’s office to get and later return the key
Listing agent has to go to your property to unlock the door and wait at the property with the showing agent until done

Agents don’t have time to worry about keys nor do they like having to schedule around other people’s time such as the home owner or listing agent. Thinking you will always be home or that your listing agent will always be available to accommodate another Realtor’s showing schedule is not realistic. A showing can happen at anytime and arrival time to your home is usually within a broad time-frame which fluctuates within a half hour to an hour. It is usually inconvenient for the listing agent to sit around your home waiting for a showing, and it’s often challenging for a buyer agent to keep a precise schedule.

Agents are like water, they follow the course of least resistance. If your home is difficult to get inside an agent may drop it from their showing schedule.

What would be your objection to a lockbox anyways: Safety? Security? Someone coming in your home unannounced? The South Florida MLS uses a lockbox system call Supra. It is very secure and affords Realtors many options controlling the lockbox functions. Once you see the lockbox firsthand and understand how secure it is (holding your key inside) and all the control you and your listing agent have over others having access to the key inside. The box itself is virtually indestructible and it would be far easier for a nefarious intruder to break down your door instead of trying to gain access to a lockbox. Going that extra step to assure your home accessible at any given time will go along way in helping you sell your home.

Realtors in South Florida using the Supra system can:

Block-out showing times;
Provide you (the seller) with online access where you can restrict showings;
Require all showings to be confirmed by you, by me, by both of us, or completely automatically;
Know exactly when any Realtor accesses the lock box in real-time;
Post all showings and agent feedback in real time online.

Block-Out Showing Times Feature:

You can ask your agent to automatically block off showings (and disable your lockbox) for any specific time or recurring time frames. Unless otherwise objected, I like to restrict home showing times to fit between: 9AM to 7PM daily; before or after that time-frame Realtors can not automatically schedule a showing online and the lock-box goes into complete lock down – The lockbox is completely disabled and no one has access. It’s also good to know for example, when when an owner has a vacation home and wants to “use” it for the weekend they can block out times days or weeks in advance. It’s simple to block out those days and time they plan on being at the property. Scheduling block-out times is very easy. Another option is the do not disturb feature. This gives a seller the ability to disable the lockbox ANYTIME desired.

Do Not Disturb (DND) Feature:

You have total control when someone can use the lockbox. You can disable the lockbox on your property at any time – from the comfort of your home. Say for instance you are feeling a little under the weather, took the day off from work and are at home bedridden; you called your listing agent and asked them not to schedule any showings for the day but … you keep thinking about the key in the box outside. Not to worry, all you have to do is enter a simple code (provided by your agent) and that code will completely disable/lockout anyone that tries to get access until you turn off the DND function. You can keep it off for minutes, hours or days – you have total control over that lockbox.

Showing Record:

Every Time your lockbox is accessed by a Realtor their unique electronic key instantly embeds their personal identification, date and time of access and the information is then transmitted wireless to Supra which can be accessed online. We always know who was at your property and when.

Sellers’ Gateway:

In addition to documenting who has accessed the lockbox, the Sellers’ Gateway also solicits agents’ feedback about your home, keeps a tally of all the showings you had, and will even show future showings. Our sellers love this feature and it’s only possible when using both the Supra lockbox and our ShowingTime scheduling system.

Going back to the question at hand – Should you use a lockbox when selling your home? Of course I feel strongly that it is in your best interest as a seller to use a lock box. A lockbox makes a home much more accessible to buyers and their agents and provides you with a complete and accurate record of showings. The key inside is safe and secure and you always have total control. When I visit for a listing presentation I will bring a sample lockbox with me. I will show you all the features of the lockbox firsthand and how we interact with it.

Having a lockbox at your home increases the number of showings and foot traffic through your property. The buyer’s agent still needs to make an appointment with the listing agent to show the house and no one can gain access to your home without your knowledge.

Fort Lauderdale Housing Market

My Market Insider provides a wealth of information that will help you better understand the factors that impact the real estate market. Consider this page your reference library for resources, tips, and techniques. Whether you’re a buyer or seller, the knowledge you gain will help put you in control of your real estate transactions. Gain valuable insight into a community by looking at household incomes, crime risk, education levels attained, and potential for extreme weather. Use the map to locate points of interest like shopping, restaurants, and healthcare services.

These reports are updated in real time and broken down by neighborhood throughout Fort Lauderdale and surrounding communities.

I can provide a more in-depth analysis for a particular neighborhood. Contact me if I can share anything with you.

Downtown Fort Lauderdale and the Las Olas Isles – zip code 33301

Near North, Victoria Park, Middle River, Central Beach – zip code 33304

Wilton Manors to the southern Corals – zip code 33305

Southeast Oakland Park – zip code 33306

Coral Ridge Country Club, Bay Club, the northern Corals and Imperial Point – zip code 33308

North Fort Lauderdale and Central Oakland Park – zip code 33334

West Fort Lauderdale and West Wilton Manors – zip code 33311

Lauderdale West, South Fort Lauderdale, Riverside, Lauderdale Isles – zip code 33312

Downtown South, Marina Mile and Fort Lauderdale Airport – zip code 33315

Rio Vista, Lauderdale Harbours, Harbor Beach – zip code 33316

Hesitant to sell in today’s market because you’d also have to buy? Not so fast…

Conventional wisdom has it that when you sell, and might buy in the same market, you’ll be buying in the same market conditions as well. You’d be mostly right, but not always. It pays to have a grasp of what’s happening in different segments of the market and take advantage when conditions are right.

At the moment, the South Florida market is pretty hot. Single family home inventory is low and good inventory sells quickly – often with multiple bidders. If you’re trying to buy in the “Sweet Spot” right now – between $300,000 and $500,000 – you’re probably having challenging time. It’s even more competitive if you’re shopping for a single family home below $300,000 – the market is best described as “insane.”

But what if you’re in a position to “move up?”

You bought your current home a few years ago or more, and you’ve taken great care of it. Today you find yourself seeking more space, perhaps a pool, or more bedrooms? Your current home that you bought for $250,000 is now in that magical sweet spot and should sell for $400,000 – that would be amazing, wouldn’t it? Except you’re worried that selling at the top of the market means that you’ll also be buying at the top of the market? Maybe not so. This is why having an expert in in the market can pay big dividends for you.

That new home priced between $500,00 and $700,000 might be a pretty good deal right now. The market for homes priced higher than yours is not as hot. Sluggish even? Check out the stats…

Your current home priced between $300,000 and $500,000 is clearly in the heart of “Seller’s Market” territory. However take a look a that $500,000 to $700,000. Almost into “Buyer’s Market” territory.

Check out the next slide. Non-distressed homes priced between $500,000 to $700,000 are even further into the “Buyer’s Market” territory. See what I mean? There’s opportunity here for a buyer in just the right situation. Could that be you?

Check out the last slide: Current market conditions are favorable in several price ranges to take advantage of a hot market to sell in, and a sluggish market to buy in. Despite the lower total number of sales in the $200,000 to $300,000 price range, the number is primarily due to lack of decent inventory. Price increases in the same range are steep. So if you’re ready for a leap into the $500,000 to $700,000 price range, moving up from nearly any price point is advantageous.

The same can be said for moving from $750,000 into any price point over $1-million. If you might be interested in a condominium priced over $1-million the market is truly your oyster. Sluggishness in the new-construction market has caused developers to offer a slew of new incentives to capture a dwindling number of buyers that are interested in luxury condos.

I have more information available and if there’s a particular segment of the market that you are interested in, please reach out. I’d be pleased to share what I have.

How do I sell my timeshare in Florida?

Or is the better question: CAN I sell my timeshare in Florida?

I get questions from colleagues around the country asking for referrals here in Florida for agents that can sell a timeshare. Since it’s the magical time of the year when folks start planning for their winter get-aways down to Sunny Florida, here are my tips for buying, and selling, a timeshare.

Plan Ahead and Buy Smart

The first thing to know is that you will over-pay for a timeshare if you buy from the developer or the on-site agent. There’s a tremendous markup for the developer when selling timeshares right on the property. However in established timeshare communities there are often timeshares that can be found on the secondary market for less than half the price the developer is offering, and can be as low as a dollar. Yes. $1. A buck.

But don’t forget that your timeshare costs far more than the purchase. The annual fees can amount to thousands of dollars. Typically around $7,500 per year.

Check out eBay timeshares and see for yourself: http://www.ebay.com/sch/Florida-Timeshares-for-Sale/15897/bn_18950828/i.html

When buying, consider forming a Limited Liability Company to take title to the timeshare. Friends of mine have purchased several timeshares in the name of the LLC and when they decided they didn’t want the timeshare anymore, they just stopped paying the maintenance fees on it. Eventually the timeshare company will take the timeshare back although they won’t want to. The LLC limits the liability to the assets of the LLC so the timeshare company can’t come after you to pay the monthly maintenance in arrears.

If you haven’t planned this far in advance, you probably own the timeshare personally.

You might be able to try the same tactic with the timeshare management company – stop making your monthly maintenance payments and try to negotiate for the company to simply take the timeshare back. However this isn’t always successful and you could wind up with derogatory marks on your credit report because of the late payments. At the very least, expect that your account will be turned over to a collection agency and that they will begin a campaign of merciless harassment by phone and mail to get you to pay your past-due maintenance fees.

Sell with a timeshare liquidator

One of the largest timeshare selling companies is Sell My Timeshare Now: www.sellmytimesharenow.com however this is more of a listing company for folks trying to sell “By Owner” on their own.

Another is Buy a Timeshare: www.buyatimeshare.com. This company is more like a listing company that charges a fee to broker your timeshare sale.

There are a few companies that will purchase your timeshare from you – often times at a huge discount. But if you just want to get out from under the maintenance charges, this might work for you. They come and go so quickly my recommended companies are no longer in business but a Google search should turn something up. Just make sure that during the transaction, the company takes on full responsibility for the maintenance and any other payments.

There is a Timeshare Users Group with loads of user-generated content about selling un-loved and un-used timeshares. www.tug2.net

Last but not least is Redweek: www.redweek.com where users can post their timeshares for sale or for rent, or try to GIVE them away to other users.

Is your timeshare worth anything?

Do your research. A great website to see if there are recent sales in nearly any timeshare resort is Sharket: www.sharket.com

Avoid the scams

Since we have already determined that a local Realtor may not be able to handle the transaction, and you’re anxious to be free of the monthly maintenance and other responsibilities, know that thousands of other folks are in situations just like yours. Watch out – there are probably dozens of timeshare peddling scams going on at any given time. A good rule of thumb: don’t deal with a company that has any upfront costs higher than $100. You really should only need to pay a “By Owner” type of marketing company for the use of its website, its promotional prowess and good name. You should only pay a company that works as your “Agent” in facilitating your sale after the transaction is successfully consummated or closed.

Top Ten Tips for 1031 Exchanges

The 1031 Exchange is slowly making its way into daily conversation by Realtors, title companies, and investors. Please keep in mind that Section 1031 isn’t restricted to Real Estate but this is where most of the discussion takes place.

Although most sales are taxable as sales, if you use 1031, you’ll either have no tax or limited tax due at the time of the exchange.

In effect, you can change the form of your investment without cashing out or recognizing a capital gain. There’s no limit on how many times or how frequently you can do a 1031 exchange. Although you may have a profit on each swap, you can avoid tax until you actually sell for cash many years later.

In general, if you swap one building for another building, you can avoid depreciation recapture. But if you exchange improved land with a building for unimproved land without a building, the depreciation you’ve previously claimed on the building will be recaptured as ordinary income.

Such complications are why you need professional help when you’re doing a 1031 exchange. If you’re considering a 1031 exchange, or just curious, here are 10 things you should know.

1. A 1031 isn’t for personal use.

The provision is only for investment and business property, so you can’t swap your primary residence for another home. There are ways you can use a 1031 for swapping vacation homes.

2. Some personal property qualifies.

Most 1031 exchanges are of real estate. However some exchanges of personal property (say – a valuable painting) can qualify.

3. “Like-kind” is broad.

Most exchanges must merely be of “like-kind.” You can exchange an apartment building for raw land, or a ranch for a strip mall. The rules are surprisingly liberal. You can even exchange one business for another.

4. You can do a “delayed” exchange.

An exchange involves a simple swap of one property for another between two people;e. But the odds of finding someone with the exact property you want who wants the exact property you have are slim. For that reason the vast majority of exchanges are delayed. in a delayed exchange, you need a middleman who holds the cash after you “sell” your property and uses it to “buy” the replacement property for you. That middleman is called the “intermediary.”

5. You must designate replacement property.

Once the sale of property occurs, the intermediary will receive the cash. You can’t receive the cash or it will spoil the 1031 treatment. Also, within 45 days of the sale of your property you must designate the replacement property in writing to the intermediary, specifying the property you want to acquire.

6. You can designate multiple replacement properties.

The IRS says you can designate three properties as the designated replacement property so long as you eventually close on one of them.

7. You must close within 6 months.

You must close on the property within 180 days of the sale of the old property. YOu start counting when the sale of your property closes. If you designate a replacement property 45 days later, you’ll have 135 days left to close on the replacement property.

8. If you receive cash, it’s taxed.

You may have cash left over the intermediary acquires the replacement property. If so, the intermediary will pay it to you at the end of hte 180 days. That cash – known as “boot” – will be taxed as partial sales proceeds from the sale of your property, generally as capital gain.

9. You must consider mortgages and other debt.

One of the main ways people get into trouble with these transactions is failing to consider loans. Suppose you had a mortgage of $1-million on the old property, but your mortgage on the new property you receive in exchange is only $900,000. You have $100,000 of gain that is also classified as “boot,” and it will be taxed.

10. Using a 1031 for a vacation house requires caution.

You can sell your primary residence and, combined with your spouse, shield $500,000 in capital gain, so long as you’ve lived in your home for two years out of the past five. But this break isn’t available for your second or vacation home. Yes, taxpayers can still turn vacation homes into rental properties and do 1031 exchanges. Example: You stop using the beach house, rent it out for six months or a year and then exchange it for other real estate. If you actually get a tenant you’ve probably converted the house investment property, which should make the 1031 exchange OK.

In 2008 the IRS set forth a safe harbor rule.

To meet safe harbor, in each of the two 12 month periods immediately after the exchange: (1) you must rent the dwelling unit to another person for a fair rental rate for 14 days or more; and (2) your own personal use of the dwelling unit cannot exceed the greater of 14 days or 10% of the number of days during the 12-month period.

Glossary:

Relinquished property: The original property being sold by the taxpayer when making an exchange.

Replacement property: The new property being acquired by the taxpayer when making an exchange.

Qualified intermediary: Accommodator, facilitator, qualified escrow holder. A third party that helps to facilitate the exchange.