WHAT YOU NEED TO KNOW BEFORE BUYING A PROPERTY

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Stacks of One Hundred Dollar Bills with Small House.Many things need to be considered when buying a property, regardless of whether your plans are to live in it or whether it is an investment. 2013 marked a year of many changes in the tax code by the Internal Revenue Service, including changes as to how mortgage interest income can be deducted and reported on tax returns, as well as Capital Gains taxes and limits, and numerous others are planned and will take effect upon property purchased in 2013.

If  the property you are considering purchasing is distressed, you will have a wide array  of considerations.  For instance, if the seller purchased in a foreclosure auction or as an REO, was the foreclosure accurately handled and/or dismissed.  As a buyer, you will need to make sure that the title is clean and that no other interest holders have rights, that may haunt you after you have signed on the dotted line.  This is the important, often overlooked role of the real estate attorney/title agent who will make sure that all this is reviewed prior to closing.  Moreover, whether the property and the loans associated with it are being audited by the Department of Justice is also a huge impacting consideration, as it may force titles that were issued to property owners and bona fide purchasers to be reversed, causing siginificant economic damages.

Real estate taxes also have a huge impact on whether a property should be considered or not.  In the advent of another real estate bubble, and with home values increasing by dramatic amounts, October may cause us to witness increased assessed values by the Property Appraiser causing once lower valued property taxes to double.

Return on Investment is also a big consideration.  If the property you are purchasing will be improved for rental,  the rental values permitted in the particular market need to be assessed.  What amounts will you be paying yearly in maintenance, insurance, taxes versus what the market will allow you to charge in rent.  Attorney Jacqueline A. Salcines states:  “At my firm, we use state of the art realty programs and tools that allow us to calculate up to the minute rental values for the most accurate assessment of what our client can rent the properties they are considering purchasing for.  This allows our investors to calculate their return on investment and make a sound decision as to whether to embark on the investment or walk away.”  There are countless other considerations that must be evaluated before you sign on the dotted line.

For many, buying a home is the single most costliest investment ever made.  It makes sense to have the right professionals by your side to guide you every step of the way.

At The Law Offices of Jacqueline A. Salcines, P.A., attorney Jacqueline A. Salcines is not only a real estate attorney and title agent with Attorney’s Title Insurance Fund, Inc. and Old Republic National Title Insurance,  but also an Accountant and Realtor.  Of equal importance, our firm has partnered up with  Tax Accountants and real estate professionals to provide the best guidance and advice to make sure your decision is a sound one.

Dont got it alone.  Hire the services of a professional to assist in making that one decision that may affect the rest of your life.

We are located in Coral Gables and the first consultation is always at no charge.

TRUST   |     COMMITTMENT  |    RESULTS

 

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MOST EXPENSIVE PENTHOUSE IN MIAMI HISTORY SOLD FOR $34 MILLION

Miami day,FloridaWilliam P. D. Pierce of Coldwell Banker Residential Real Estate has successfuly sold the highest most expensive condominium in Miami’s History.  The sales price of the Penthouse located at 1601 and 1602 The Residences at The Miami Beach EDITION has sold for $34 Million.  Designed by famed architect John Pawson, the units boast a 360 degree view of the Ocean, the Bay and the City and the two units combined total 16,271 square feet.

With the sale of this luxury condominium and others setting a record high for the Miami condominium and luxury market, South Florida is poised to ride a great recovery wave in 2013.  In fact, One Sothebys International Realty noted in February, 2013 that sales of property over $10,000.000.00 experienced a 115% increase from 2011 versus 2012.  Source:  One Sothebys International Realty – The Miami Herald – Business Monday Section February 18, 2013.

Coral Gables real estate lawyer Jacqueline A. Salcines, Esq. states “with all the new luxury projects and towers going up around Miami, the ultra-luxury home buying market is soaring once again.”  “We are in the midst of a real recovery with new projects offering foreigners and investors amenities and services well beyond their wildest dreams”.

Visit us at WWW.SALCINESLAW.COM  to view other high end luxury properties, find out what is going on around the community and subscribe to our informational mailings.

TRUST  |    COMMITMENT  |  RESULTS

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SONY OPEN TENNIS MARCH 18-31

One of the most prestigious sporting events in Florida is set to begin.  The SONY ERICSSON OPEN Tennis Tournament, held every year in Crandon Park, Key Biscayne runs this year from March 18 to March 31, 2013.    This tournament boasts the likes of numerous celebrities and the rich and famous, all down in South Florida to enjoy the sun, the waves and great championship tennis.

Packages are still available for sale.

Visit www.sonyopentennis.com for additional information.

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WHAT YOU SHOULD KNOW BEFORE BUYING A HOUSE

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foreclosure_defense Deciding to purchase a home, for many, is the single most costly decision of their lives. Immediately followed by financing our children’s college education, perhaps?  Therefore, such a decision is not one to take lightly.  While we all know when it is time to buy (either you have outgrown your current home, looking to relocate, better neighborhood, growing family, change in employment) it is not a decision to be made without careful consideration of all factors.  Rather, some things to be taken into consideration include:

  1. Is the property priced right.  Hiring a real estate professional in this arena can be the single most important decision you make to determine value.  A realtor and real estate attorney as myself can run comps and look at closed sales, or determine a High, Low and Median price per square foot.  We are currently in a Seller’s market in South Florida and experiencing higher than normal asking/sales prices due to low inventory.  Therefore, the Seller may take this into consideration and price the house higher than market sustains. While today it may not matter as prices continue to rise, tomororw, if the bubble bursts again, this may not allow you to recuperate your paying price.
  2. Do your research on the neighborhood. If you have young children, are there other young children nearby?  Are the nearby residents owners that will maintain their properties or tenants that may not?   What schools pertain to the property?  Is there a Homeowner’s Association? If so, what are the rules and regulations you will be required to adhere to?  Take trips to the property during different hours so you can get a feel for the neighborhood and neighbors.  Going only while it is staged will not give an acucrate depiction of what life will be like after you close.  There is nothing worse than buying a property without researching these items and then finding out that your dream home may not be a dream after all.
  3. Ask for a Property Disclosure and perform proper inspections.  What looks great on the outside, may turn out to be not so great on the inside.  Perhaps your dream home needs a new roof that will put you back thousands of dollars. Or there are wood destroying organishms, or Chinese drywall or mold, that will cause health issues.  What other underlying issues are present in the home that the seller knows of?  Your realtor or the seller’s realtor must have them prepare and sign a Seller Disclousre that will reveal any known defects or issues with the home that you should take into consideration before putting an offer in.
  4. Are the owners in foreclosure or other liens that can effect the property.  While hiring the right attorney will clear any title issues, you may be in a time crunch to move and any home purchased with either a foreclosure or in a short sale, may be time consuming.  Clearing any tax liens or making sure foreclosures appeal periods have lapsed, can affect your closing deadline and they are important issues to know before putting an offer on a home.

These and countless other issues arise during the course of a real estate deal.

By having the right real estate lawyer and realtor by your side, you have already conquered half the battle.  While it may seem daunting to a homebuyer, these are issues we deal with on a daily basis and can handle like clockwork.

Don’t go it alone.  Hire an experienced real estate attorney to protect your rights.

LAW OFFICES OF JACQUELINE A. SALCINES, P.A.

TRUST   |  COMMITMENT   |   RESULTS

 

 

 

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DID YOU KNOW THAT FLORIDA HAS NO INDIVIDUAL INCOME TAX

Florida is one of the very few  states that does not tax its residents individually on their income and wages earned.  It is only one in seven states that does not.

This means that any resident in Florida will pay income tax to the IRS on income and wages earned, however, will not be doubly taxed as in most states.

Florida does, however, have other taxes common to most states including:

  • State Sales Tax
  • Tangible Tax
  • Intangible Tax

With the growing real estate trends in South Florida, this is certainly news anyone looking to invest or relocate into Florida can use.

Don’t go it alone.  Use the services of a qualified real estate attorney when buying or selling real estate.

Offices in Coral Gables.  305  | 669  | 5280

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HOMEOWNERS HAVE EQUITY AGAIN

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The Wall Street Journal has reported that the Rising Prices of Homes has drastically shrunk the ranks of Underwater Borrowers”.  Source:  The Wall Street Journal  February 25, 2013.  To read the full article click the following link:  http://blogs.wsj.com/developments/2013/02/21/rising-prices-shrink-ranks-of-underwater-borrowersHome floating on a life preserver.

In fact, according to the Article, and citing from reports by Zillow, “around 2 million homeowners moved back above water last year”.

So what does this mean for our South Florida market.  Well, what once was considered a short sale, may in fact now be a regular sale.  Sellers that were forced to sell their homes because of trouble making mortgage payments due to either having entered into subprime loans, adjustable interest rate mortgages and fast approaching balloon mortgages, may now have equity. This equity translates into the ability to refinance their home and take advantage of  low mortgage rates OR sell their home and make a profit.

“While the looming release of shadow inventory is expected to affect prices and perhaps “burst the bubble” once more, South Florida home owners can take advantage of the rise in prices to set their objectives in place”.  Jacqueline A. Salcines, Esq, real estate attorney.

Now is the time to consult a real estate expert to find out what your home is worth and decide whether to sell the home or refinance.  In reality, nobody knows how long this new bubble is going to last and one might as well take advantage of the life preserver.

LAW OFFICES OF JACQUELINE A. SALCINES, P.A.

 

 

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LOAN MODIFICATIONS MAKING A COMEBACK

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It is estimated that 40 percent of loan modifications fail and the borrowers default the first time around.  It is no surprise, as many are locked into a price that they can afford. However, due to the fact the Making Home Affordable HAMP Program obligates the borrowers to include escrows (taxes, insurance and PMI) in their loan modification payment, as soon as taxes or insurance rise, so does the payment. This results in the borrower once again defaulting. Loan Modification Green Road Sign with dramatic clouds and sky.

A recent report prepared by Barclays revealed that “75 percent of remods occur after 18 months of the previous modification, and about a quarter of those remods were given to borrowers who were current”.  Source: DS News February 18, 2013.

Moreover, as more bank have faced an avalanche of lawsuits, investigations, audits by the Department of Justice as well as penalties, when older loan modifications did not see principal reductions, nowadays the lenders are much more agreeable to reducing principal and interest rates.  “Our largest principal reduction to date was $302,000.00 off a primary loan”  Says Jacqueline A. Salcines, Esq., an attorney handling loan modification in Coral Gables, Florida.

“The best advice I can give to anyone out there looking to modify their existing loan is  do your homework.  Make sure your lender participates in HAMP. Make sure your numbers are right. Many borrowers submit RMA Loan Modification Packages thinking they have to show a deficit every month.  That is, more expenses than income.  This criteria will actually get you denied, FAST.  You must follow the ratios of the bank to make sure your numbers qualify you. And if they dont, there are avenues to pursue to get them there.  Lenders allows contributions to income from food stamps, family members, rental of rooms inside the home, cash tips, etc.  But if the borrower does not know this, provides their financials over the phone and gets disqualified, there are no second chances.” Jacqueline A. Salcines, Esq.

If you are having trouble making your mortgage payments, consult a Loan Modification professional that is familiar with the rules and regulations specific to each lender.  Make sure your numbers are run before you are charged.  “At my firm, my practice is to qualify the borrower first and foremost during the initial consult. Unless you qualify, I will not take your case”.  Jacqueline  A. Salcines, Esq., Jacqueline A. Salcines, PA

Call us anytime for a no fee consultation to see if you qualify. Even if you have modified in the past, you may still be eligible for a principal reduction and lower interest rates under the new regulations.

TRUST  |  COMMITMENT  | RESULTS

Jacqueline A. Salcines, PA

Telephone:  305  |  669  | 5280

 

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LANDSCAPING HEAVILY INFLUENCES SELLING PRICE OF A HOME

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Stone and brick home with arched doorway As we South Floridians in the Gables, Pinecrest, Key Biscayne and surrounding areas enjoy a Seller’s market once again, it is important to know that research shows that the average homebuyer has already  made their mind up about buying a particular home the second they see the house from the outside.  “And by outside, I am not just referring to the structure.  A beautiful, well architected landscaped home will most likely get your buyer in the door much quicker than one that is spared of landscaping, and heavily influence the market value of your home.”  Jacqueline A. Salcines, Esq.

Many university studies reveal that an investment in landscaping provides a return on investment of more than 100 percent.  100 PERCENT! That means, that if you invest $25,000.00 in landscaping, you are likely to see that return when you add the $25,000.00 to the selling price.  Studies also show that homes that have curb appeal sell up to six weeks faster than homes that do not.

While some areas sell by themselves, this is great news if you are trying to sell a distressed home in today’s market.

So where do you start.  Drive around.  Take a look at other well-manicured yards in highly sought after areas and ask the homeowners for their landscapers name.  If you are the “Do It Yourself” type, you can certainly find hundreds of books and magazines on the market these days that will teach you how to get that great yard in no time.  The trick is to remove dead plants or beds that have been taken over by weeds. Make sure the lawn is nicely manicured and GREEN and thriving.  Local stores like Home Depot, ACE and others, sell numerous fertilizers for every type of lawn.  And make sure you have plant beds and plenty of color to bring attention to areas of the property. Also make sure the green does not convert into a jungle.

“Addresss the landscaping with a buyers point of view.  Think about what a typical buyer  is looking for. They want a nicely manicured yard with enough greenery to frame complement your home, but not so much that it becomes the focus of the home. Trees have the biggest impact, so placing an attractive tree, or trees, in your yard to provide shade and frame your home or backyard may well be worth it. Furthermore, landscape experts add that the way your landscaping funds are invested has a great deal to do with the return you experience. Buying a ton of small homogeneous plants is far less desirable that a few well placed mature ornamentals that complement the rest of your yard. You should focus on the front yard first as this is what grabs a potential buyer’s attention. Make sure your beds are weed free and covered with a nice layer of mulch.”

While only one idea to bring value to your home, always consult an expert when buying or selling.  We are here to help.

Law Offices of Jacqueline A. Salcines, P.A.

 

 

 

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HOW TO CALCULATE WHAT YOUR HOME IS WORTH

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If you have not checked to see what your home is worth lately, you may be in for quite a surprise.   Nationally, and statewide, property values are skyrocketing and the median prices of homes are rising in double digits, specially the South Florida luxury real estate market. foreclosure process

The best way to determine the fair market value, is always to hire the services of a knowledgeable and skilled real estate professional to run a Comparative Market Analysis of your property to determine the price per square foot. A low, median and high price will be provided in order to assess true and accurate price per square foot.  Since this technique is based on comparables to the most recent sales, it is by far the most accurate manner to determine worth.  Whether prepared by an attorney or real estate agent, choose someone with knowledge and skill to determine the most accurate price.

Of course, there is always the formal APPRAISAL.  Although you will typically pay between $250.00 and $450.00 for an appraisal, this will also provide you with an accurate report of value based on recent sales. For buyers, sellers and investors, knowing and having this information is crucial.

There are also numerous websites and apps available to calculate value, including:

Zillow (www.zillow.com)

This will provide you with a  “Zestimate”  of fair market value.

For investors, Zillow also has a great little tool that estimates what the property would rent for.

And the Make Me Move feature, for those not quite ready to sell but curious about what they could get if they placed the property on the market. This tool allows you to name your price and see if anyone bites

Trulia (www.trulia.com)

Simply by entering your address,  Trulia  will do the rest.  You can also add any information that is missing from the property description such as new roof, or other facts, that will be re-estimated into price

Trulia is a great tool for house hunting, as you can search for homes by city, state or zip code.  It also allows for more refined searches, such as number of bedrooms or bathrooms, how many days on the market, and to see what new listing come on the market as they come up.

Trulia’s unique Heat Maps provide a graphic picture of an area’s sales, price trends and popularity. Adjust the Heat Map by neighborhood, city, county and state. You’ll also find school ratings, information about nearby businesses and comments from local residents.

Realtor.com (www.realtor.com)

This is the Official site of the National Association of Realtors.  You can have access to any homes that are listed and can refine searches by price, maximum, minimum, number of rooms, pool, zip code. This is by far the most comprehensive tool for buyers and sellers.

It is also packed with great resources such as a mortgage calculator, real estates trends and topics as well as home improvement advice.

And for all those tech savvy individuals, there are new apps each and every day such as Realtor.com app and apps created by realtors themselves, that will permit you to subscribe to their service and obtain up to the minute information about new listings, and follow their blogs.

Keep in mind that all the information on these sites are only starting points.  There is no substitute for a professional appraisal or Opinion of Value from a qualified Real Estate Attorney or Realtor

TRUST  |   COMMITMENT  |  RESULTS  

LAW OFFICES OF JACQUELINE A. SALCINES, P.A.

 

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HOW TO CALCULATE CLOSING COSTS ON A PURCHASE

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I OFTEN HAVE PEOPLE CALL ME WHEN THEY ARE GOING TO PURCHASE A PROPERTY, AND ASK ME  TO GIVE THEM AN ESTIMATE OF WHAT THEIR CLOSING COSTS ARE GOING TO BE.

I HAVE HEARD OF REALTORS THAT CALCULATE IT USING A PERCENTAGE OF THE SALES/PURCHASE PRICE, AS DO SOME BANKERS. foreclosure_defense

HOWEVER, THE EXACT AMOUNT IS OFTEN VERY EASY TO CALCULATE.  BELOW IS AN EXAMPLE THAT CAN BE USED FOR YOUR PURCHASE

A BUYER’S TYPICAL COSTS AND FEES CAN BE CALCULATED AS FOLLOWS:

  1. ATTORNEY FEE
  2. SETTLEMENT OR CLOSING FEE  – THE FEE TO PERFORM YOUR CLOSING BY THE ATTORNEY OR TITLE COMPANY (TYPICALLY $295.00 IN MIAMI DADE COUNTY)
  3. SURVEY – IF A SINGLE FAMILY RESIDENCE (USUALLY BETWEEN $295.00 AND $300.00)
  4. COURIER FEE (USUALLY BETWEEN $25.00 AND $30.00)
  5. WIRE FEE (USUALLY BETWEEN $15.00 TO $25.00)
  6. HOMEOWNERS INSURANCE PREMIUM
  7. HOMEOWNERS FLOOD INSURANCE PREMIUM
  8. TITLE INSURANCE PREMIUM (THIS IS BASED ON THE PURCHASE PRICE AND IS A STANDARD FEE REGULATED BY THE DEPARTMENT OF INSURANCE)
  9. LOAN FEES (CAN NOT EXCEED THE GOOD FAITH ESTIMATE PROVIDED BY YOUR BANKER BY MORE THAN 10% OR THE BANK MUST REFUND THE DIFFERENCE TO YOU)
  10. IF FINANCING, YOU MUST BE INTANGIBLE TAX ON THE  MORTGAGE LOAN AMOUNT AT .20 CENTS FOR EVERY $100.00 BORROWED
  11. IF FINANCING, YOU MUST ALSO PAY DOCUMENTARY STAMPS TAXES ON THE MORTGAGE AT .35 CENTS FOR EVERY $100.00 BORROWED
  12. IF FINANCING, YOU WILL ALSO PAY FOR THE RECORDING OF THE MORTGAGE AT $8.00 FOR THE FIRST PAGE AND $8.50 FOR EVERY PAGE THEREAFTER.

PROPERTY TAXES ARE PRORATED FROM JANUARY 1ST OF THE YEAR TO THE DATE OF CLOSING AND WILL APPEAR AS A REDUCTION IN THE AMOUNT THE BUYER IS REQUIRED TO BRING TO CLOSING.

ESCROWS WILL ALSO BE ADDED BY YOUR LENDER IS YOU HAVE ELECTED TO INCLUDE THE INSURANCE AND TAXES INSIDE YOUR MONTHLY  MORTGAGE PAYMENT. IF SO, THE BANK WILL REQUIRE THAT MONTHS BE COLLECTED AT CLOSING AND HELD IN RESERVE ON YOUR ACCOUNT UNTIL THE LENDER PAYS YOUR PROPERTY TAXES IN NOVEMBER AND YOUR INSURANCE ONE YEAR FROM NOW.

ASIDE FROM THESE COSTS, YOU NEED TO EXAMINE YOUR CONTRACT CLOSELY TO SEE IF YOU ARE LIABLE FOR ANY OTHER COSTS.

WHILE THIS IS THE TYPICAL REAL ESTATE TRANSACTION SCENARIO IN MIAMI DADE, BROWARD IS A BIT DIFFERENT.

  1. IN BROWARD, SELLER IS USUALLY THE ONE THAT PAYS THE TITLE INSURANCE PREMIUM
  2. IN BROWARD, THE DOCUMENTARY STAMP TAXES ON THE DEED PAID BY SELLER ARE $ .70 CENTS FOR EVERY $100.00.

WITH SO MANY FEES AND COSTS INVOLVED, A THOROUGH EXAMINATION OF THE CONTRACT SHOULD BE MADE BY AN EXPERIENCED REAL ESTATE ATTORNEY PRIOR TO SIGNING ANY CONTRACT.  YOU MAY NOT KNOW WHAT FEES AND COSTS ARE CUSTOMARY DEPENDING ON YOUR COUNTY, AND ONCE YOU SIGN, THERE IS NO FREEZING OFF PERIOD.  YOU ARE STUCK.

DONT GO IT ALONE. HIRE THE SERVICES OF AN EXPERIENCED REAL ESTATE ATTORNEY TO REPRESENT YOU IN YOUR PURCHASE OR SALE.

JACQUELINE A. SALCINES, ESQ.   305  |  669  |  5280

 

 

 

 

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