UNPRECEDENTED BUYING POWER

European and Canadian Buyers interested in Naples may want to take advantage of the soft US dollar, which has created Buying Power in conjunction with current market prices here. For the first time in many years, the Canadian dollar and the US dollar are at par, creating a situation where its citizens have seen their buying power increase better than 50% over the past 4years. Some recent Canadian clients have taken advantage their dollar and builder incentives to purchase homes in advance of their original timetable for a second home.

THE BUYING PROCESS

• As your exclusive Buyer’s Agent, we ascertain your needs, and search our MLS database and contact builders,  to find suitable properties

• We email selected listings to you in advance of your visit for review and comment

• During your visit, we view the specific properties and builder homes in the communities that we agree best meet your needs

• We prepare all offers (except on new construction where builders use their own contracts) and conduct negotiations on your behalf

 • A cash deposit (US Funds)—usually about $5000 is required with all offers, and is held by the escrow (closing) agent or your attorney pending conclusion and acceptance of the offer. If the offer is not consummated, all deposits are returned to you.

• Buyers should establish a local bank account, especially if financing the purchase, to make monthly payments on the loan and for such items as utility and association fees

• Most of our buyers are cash purchasers, but we are happy to introduce you to local lenders---plan to finance no more that 75% of the purchase price in the current financial environment

• On a Condominium purchase, all Buyers have a 3 day recission on existing homes and a 15 day recission on new homes—meaning that after review of all community documents-- within the recission period, you may terminate the agreement with notice, and receive all deposits back

• Upon acceptance of the offer, the deposit is usually increased to 10% of the purchase price, with the final balance due at closing (settlement)

• On existing properties, final settlement is usually 30-60 days from contract (on new homes, settlement is upon completion of your home)

• On most transactions, the escrow (Title) company holding the deposits prepares all legal documents for closing. You may wish to have an attorney, and we can recommend excellent real estate specialists, but most buyers rely on the Title company, who has legal staff available as necessary.

• Buyers need not be present for closing, as the transaction can be closed via mail.

• Foreign buyers will pay state and county taxes at purchase, annual real estate taxes, and taxes on any gain at sale

• Upon sale, Foreign Buyers may avail themselves of the exchange provisions of the US tax code, thereby deferring gains with the purchase of a new property. It is best to seek the advice of a Tax counselor on these matters

• The 1980 FIRPTA law requires a Foreign Seller to have 10% of the selling price withheld, to cover taxes on the gain. It may be wise to consult an accountant on how best to handle this requirement. We can recommend local experts.

• As your agent, our compensation is via sharing the total brokerage fee with the sellers agent, or in the case of new construction, directly from the builder. We do not require any advance fees, and provide our services to you at no direct cost to you

• Title insurance premium, insures that the title to the property is clear, and rates are set by the state -----------Approx   0.6% of price

• Closing Costs for prep of deed and documents by Title Co—Approx $700

• Mortgage Fees to lender, and state taxes on mortgage---0.35%of mtge amt + approx $1500

• Transfer Fees  vary by community, depends on Home Owners Association requirements, and community requirements-----range from $500 to over $10,000

• State Transfer Tax:required by most builders on new homes, and in some cases as part of the negotiations------0.7% of Purchase price

• Inspections: we recommend inspection of all homes and equipment by licensed professionals, and we coordinate the work---varies from $400-$1000 depending on complexity and size of home

• Property taxes: usually amount to 1.25% of purchase price,+ development district fees on some high end communities -----1.25%value +

• Community Fees:most of our clients reside in a gated community, or condo and some fees include exterior landscape maintenance, and fees range from -------approx$500 to over $1000/mo

• Insurance: varies widely depending on location and whether the property is a detached home or condo. Further from the coast is less expensive. An owner will need at a minimum liability & contents insurance on a condo, to flood, wind, property coverage for a home. Costs vary from ---approx $1000 for condo to over $10,000 for home near coast

• Home Watch Service:  is recommended for all seasonal owners, to weekly check air conditioning, plumbing and  other systems----approx $50/mo

• Pool Service: essential for single family homes, weekly service----approx $90/mo

• Brokerage Fees: are negotiated, and we can refer you to the best agent to sell your home

• Inspection Repairs:  from the Buyers inspection as necessary

• State Transfer Tax:  as above 0.7% of purchase price

• Closing Costs:  prep of deed, coordination, recording fees etc----approx $500

• FIRPTA Withholding:    10%of Selling Price (as noted above)