Frequently asked questions for those looking for a property
who are called Realtors®?
People who have a degree in Real Estate from the State of Florida or any other State of the Union can apply for registration in the National Association of REALTORS®. In our case we belong to the Florida Association of REALTORS®.
How are Realtors® services paid?
The services of the REALTORS® are paid by the seller of the property at the time of closing the operation, through a commission on the sale price of the property.
What is the Multiple Real Estate Offer System (“Multiple Listing System")?
The "MLS" is a large database where Realtors® places the properties that they offer for sale or rent (commercial or residential) and from which the general public can obtain restricted information. If you visit the previous section of this site - "Search for Real Estate" - you will be able to browse the "MLS" and learn details of the Florida real estate market.
What are the services provided by REALTORS®?
REALTORS® advise on financial aspects related to real estate purchase-sale operations; analyze comparative real estate market values and access information on property taxes, municipal services, and zoning changes; access privileged information through the Multiple Real Estate Offer System (“Multiple Listing System”) to show only the properties that best suit each case – size, style, location and accessibility to schools, transportation, shopping malls and job sites; they are sensitive to the importance of their roles and will do their best to always facilitate balanced negotiations.
What is the Capitalization Rate (Cap Rate)?
The "Cap Rate” It is the relationship between the cash flow generated by a property and its market value. The “Cap Rate” It is used to determine the cost of acquisition or sale of an existing property and consists of a rate of return expressed as the ratio between the Net Operating Income (NOI) and the sale price. To the extent that the "Cap Rate” The higher the price, the lower the selling price.
Example: If a property is purchased for a price of, say, $1,000,000 and produces $100,000 of net operating income (Gross Lease Income less Fixed and Variable Costs) per year, then we have,
$100,000 / $1,000,000 = 0.10 = 10% = “CapRate”.
Can foreign investors acquire real estate in the US?
Of course! Foreign investors can acquire commercial or residential properties in all its forms, either for their own use and enjoyment or as a source of income.
Is there financing for foreign investors?
Foreign investment in real estate is welcome in the US, which is why the North American mortgage system offers loans to non-resident foreigners under very advantageous conditions.
If the Buyer's credit capacity is appropriate, he may secure financing of up to 70% of the value of the property, with terms of up to 30 years and estimated interest from the Prime Rate.
What is a “Short Sale”?
A “Short Sale” is the sale of a property in which the product of the operation does not cover – it falls “short” – the mortgage amount owed to the bank and the bank prefers to assume a partial loss. It is a transaction that must be done with the consent of both parties, thus avoiding reaching the foreclosure procedure.
What is a “foreclosure”?
“foreclosure” It is the legal process through which the Court authorizes a creditor to proceed with the foreclosure procedure on a property whose debtor has failed to comply with his formal obligations. When the process concludes, the creditor could sell the property and use the proceeds to pay off the mortgage debt and legal costs.
How long does it take to close a buy-sell transaction?
A normal transaction takes on average about 30 days. The inspection period takes about 15 days and the closing paperwork process another 15. A bank-approved “short sale” and a repossession sale (REO) can take between 90-120 days. “Short Sales" without approval of the creditor bank should be avoided due to the conditions of uncertainty that their processing entails.
Do I need a lawyer to assist me in the purchase of real estate?
It is advisable to hire the services of a real estate attorney to conduct the buyer's affairs until the day of closing and even after. The attorney must examine the records to determine that the property is free of all encumbrances; analyze property titles and other pertinent legal documents; verify that the seller has the authority and is qualified to transfer title; Negotiate with the insurance company to ensure proper title coverage against any third party claims.
What functions does the closing attorney perform?
The closing attorney usually acts as trustee of the funds used in the purchase and as a documentary recorder of the case file. The lawyer must combine all the information relevant to the operation within an information package that will be delivered to the parties on the closing day. At that time, the lawyer will explain in detail the purpose of each document and will collect the necessary signatures for the formalization.
Subsequently, it will disburse the pertinent funds, generate the due public records and prepare the insurance policies for the buyer and the financial creditor.
Is it important to do a private inspection of the property to be acquired?
If it is. The Private Inspector will make the technical reviews and will issue a report with all the faults and defects of the property that must be corrected by the Seller before the closing. In some cases the Seller will discount the value of the repairs from the price and, in others, the Buyer may withdraw from the purchase. In any case, it is important to select an experienced inspector with a track record of honesty.
Business Broker and Real Estate Agent
Florida License: SL3519326
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