1031 Exchanges

Today I attended a seminar on 1031 exchanges. I've been selling for over 27 years, and I have done my fair share of exchanges, but I went to the class anyway just to see if I could pick up any *new info to share with my customers. The class was given by a gentleman named Marshall Beene who is an exchange account coordinator with U.S. National 1031 Exchange.

An investor in real estate understands how important it is to preserve wealth and assets. The investor is fortunate to have this tax code which gives them the ability to defer taxes on their gain and rollover equity of "like kind" properties. Thus, the investor continues to build wealth through real estate investments and maintains the hard earned equity.

First of all, let me define what an IRC 1031 Tax deferred Exchange is: A 1031 Exchange is a transaction which specifies if an asset (a form of real estate such as land or a commercial building) is sold and the proceeds of the sale are then reinvested in an asset of a similar kind, therefore no capital gain or loss is recognized, allowing the deferment of capital gains taxes that would otherwise been due on the first sale. The actual law is Title 26, section 1031 of the Internal Revenue Code.

All clients should refer to their CPA for tax or legal advice, but if you have basic questions about what an IRC 1031 Tax Deferred Exchange is we welcome your call. Many of these questions can also be answered by logging onto www.USNational1031.com

Okay, now for the *new info...I thought this was interesting...If you, an investor, purchased a property for $200,000. and the current market value is $500,000...BUT, if you have taken equity out of the property over your time of ownership, you will still owe capital gains on the estimated $300,000 difference--known as gain (less added improvements, less depreciation, less selling expenses,etc...I'm just trying to keep the example simple) even if your current mortgage debt is $400,000 or more...The tax due on the sale is based on the estimated gain on the sale regardless of whether you have refinanced or gotten equity out of the property. In this instance, it would be better to consider a 1031 exchange and "roll" the sale into another like kind property of equal or greater value and continue to build wealth rather than get "stuck" owing taxes on a property you now have little or no equity in. Again, I always recommend you call your CPA, but I thought that in today's market there might be a few investors out there in similar situations that might find this info helpful.

If you own an investment property here in Naples Florida and want more info about the 1031 exchange and how it could benefit you, please call The Harris-Peppe Team today.

Market Hits Bottom!

A week or so ago our local newspaper reported that the housing market in Collier had "hit bottom" and was back on track. I'd say a lot of folks read that article because showings on our listings are up again after experiencing a bit of a lull earlier last month.

At a recent real estate forum, organized by The Naples Area Board of Realtors, Hank Fishkind, renowned Florida economist spoke the words Naples real estate agents have been waiting to hear..."The markets are not eroding further". Yes, it looks like prices have leveled off, but it will probably take another 6 to 12 months for sales to really start improving in the Naples area. Fishkind described the unsold inventory of new homes in Collier County as "fairly small" while he predicts it will be "years" before prices go up again. He also spoke about the decline in housing starts which will also "bottom" out in 2008. This will make finding new homes around town more scarce in a couple of years.

Certain neighborhoods are already rebounding. Why just today I selected 7 homes to show a prospect tomorrow and 2 of the 7 went under contract over the weekend! In the first weekend of May! Yahoo! Usually by this time of year Naples is pretty quiet, but people are coming back to make decisions that they didn't make in February!

For a list of what we think are the areas hottest properties email or call us today!
michele@naplesrealestate.com or Chip's direct line: 239-370-0574

Say "hello" to a good buy!

Call today to see this lovely home perfectly situated on a peaceful preserve. Unbelievable opportunity to own a 3 bedroom single family home with a 2 car-garage, private pool and spa, intensely furnished turnkey and brand new carpet!

This great community is a friendly neighborhood with quiet winding streets, sidewalks and cul du sacs. There's a world class clubhouse offering fabulous amenities including a huge swimming pool and excellent tennis facility. The gate house is fully manned and adds security and always a warm welcome!

Come see why we think at only $349,000 this is one of Naples Best Buys! Call soon...this wonderful opportunity will not last long! 239-250-4370 direct.

It's what's on the outside that counts!

A recent study produced by Hanley Wood LLC in cooperation with the National Association of Realtors' REALTOR Magazine found that the most profitable projects for return on your dollar around the house were outside projects. When looking for the top returns for the dollar, upscale siding and/or fresh paint on the exterior recouped the highest percentage at 88%. Buyers first judge a home by its curb appeal. The "Cost vs. Value Report" purports that 3 of the top 4 projects with the highest return were outside investments. Following siding upgrades (or exterior painting), the addition of a deck (in our case that would be a new "lanai":-) and new windows both returned over 80%. On the national average, the only interior job to generate over 80% was a kitchen remodel.

First impressions mean the most, so put your best "face" forward. Did you know a buyer develops an opinion of your property in 15 seconds! So, sweep those eaves and sidewalks, touch up paint & paint the front door a fresh, new color...plant seasonal, flowering plants...make sure all landscaping is neatly trimmed. There is more competition than ever; make sure at the end of the day your home is the one they remember first...and for all the right reasons!

Zen and the Art of Selling Real Estate

It was about 30 years ago when I first came across "Zen and the Art of Motorcycle Maintenance: An inquiry into Values". It is Robert M. Pirsig's first text in which he explored his theory of metaphysics and reality. Reading it reconfirmed a core belief instilled in me by my father...basically, Everything you think, you are. This mantra has become part of the fiber of my being and is reflected in everything I do, including and very importantly, my work. I don't know if there ever was a text written, ..."Zen and The Art of Selling Real Estate" specifically, but that practice of keeping good thoughts has never been more needed and or more important than it is now...

Today's real estate agents face more challenges than ever before...Therefore, keeping lofty thoughts, making positive affirmations as well as maintaining an optimistic outlook while being receptive and open to communicate with each seller and buyer as they need...this "value" of customer service: the customer is always right...the customer comes first...This is the true value of selling real estate...The relationships we have taken the time to nurture and build. This is the truest measure of success.

Just the other day I received a phone call from a very frustrated seller. (A lot of today's sellers are frustrated) He and his wife are two of my most favorite customers. They have bought and sold quite a few properties from us over the years. They are kind and loyal and easy to work with. After several moments of conversation he said to me, "Michele, you have the most calming voice." It was such a nice thing for him to say and it reminded me yet again how very important it is to stay in that positive place...Reacting to a person's frustration, making excuses, defending the market...none of this works. What sellers (and buyers) need is knowledge & honesty...about the price, about the market and the trends, but mostly they just want a "calming voice"...

Yes, a lot has happened in the world since Mr. Pirsig first wrote about the zen approach to maintaining a motorcycle, but his theory isn't science after all, it's just the truth...Everything you think, you are --And I think I'm the luckiest person in the world to have made so many friends in my 27 years of selling real estate here in Naples. That is my value...Everything else will just fall into place.

Global Connections

Coldwell Banker and The Harris-Peppe Team opens homes to the world in 46 countries, on 6 continents...and our network keeps growing & growing. The Coldwell Banker brand name is known worldwide. Because of correcting real estate prices, historically low interest rates and the value of the Euro, the Canadian dollar and other foreign currencies, Florida real estate is "on sale" like never before! With favorable exchange rates and our global network of 120,000 sales associates in more than 3,800 offices in 46 countries, we are uniquely positioned as one of very few international real estate brands.

Savvy international buyers recognize that NOW is the perfect time to buy their Florida Dream Home. On a recent online survey, Coldwell Banker in Florida determined that 47% of the agents that responded reported working with international buyers from 90 countries in the last 6 months. This is significantly higher than the national average of 33% in 2007. Whether you are a buyer or a seller, working with a team and a company that offers this global reach is of utmost importance. We know that many of our international home buyers are going to the Internet first to find their Florida home. Florida accounted for 26% of the all international home purchases in 2007...many of whom have discovered the beauty and value of Naples!

At Coldwell Banker and The Harris-Peppe Team we are committed to broadening our international reach. We are committed to educating ourselves on the business protocol and buying habits of potential customers from around the globe. I'm sure you've heard the expression that "real estate is local", however, real estate has gone global and we pride ourselves in our Global Connections.

New Feature on our site!

We love getting feedback and input from the public and our customers who frequent our website. We take all suggestions into consideration and today I am happy to announce a few improvements to our already awesome site!

First of all, as a buyer you will now be able to search in better price point increments to help you zero in on listings that are closer to the actual purchase price you desire.

Second, we will now be changing our "Featured Property" on our home page weekly instead of monthly. With so many wonderful listings in our inventory, and with featured properties getting so many "looks" we thought this would be a way of better exposing our fabulous "best buys" and change them out regularly. By clicking on that link on the home page you will be able to get details of each listing as well as lots of photographs and a virtual tour!

So thank you for all the great comments! Keep them coming! We aim to please! --and remember, to see any of these listings, please call The Harris-Peppe Team today! 239-370-0574 direct

Naples Real Estate Update

Like any commodity, a home's value will follow supply and demand trends.

Our current MLS inventory in Naples for active residential listings has hovered at 12,000 for several months. Competition is abundant and many buyers are waiting for prices to fall even more. Investors, for the most part, are out of the market, thereby making ours a user-driven market with price being the # 1 consideration when offers are being negotiated. Even if Naples stays on track with approximately the same number of sales this year as 2007, we have a 3 year absorption rate.

Last year MLS reported a total of 3,903 closed residential sales, down from 4,516 in 2006. There were a total of 8,859 closings in 2005 following a record of 8,995 in 2004. (I can track this back further if you are interested)...

Probably the best barometer for determining what is happening NOW in any real estate market is pending sales (actual written business). Year to date in Naples, per the MLS, we have had 1572 listings pended as compared to 1539 in 2007. Up slightly. Each neighborhood should be focused on individually, as statistics vary in certain price points and communities...even absorption rates can vary widely from neighborhood to neighborhood. Please call or email us today for details on any specific property, we are happy to be of assistance and look forward to earning your business and referrals!

239-370-0574 (direct) or harris-peppe@naplesrealestate.com

Excellence is a Habit

"We are what we repeatedly do.

Excellence, then, is not an act, but a habit."

Aristotle

Chip Harris & Michele Peppe are proud to announce that recently at their annual awards banquet, they were awarded the distinction of being named the top listing and selling agents at the prestigious Coldwell Banker Previews office on Fifth Avenue South in Naples for 2008. They were also named as one of the top 10 agents for Coldwell Banker in the region, as well as in the top 100 of all agents statewide!

"Chip and I believe our success can be credited to a number of factors; but mostly it is our commitment to hard work, integrity and customer service. Our market knowledge is stems from our 40+ years of experience selling the Naples' lifestyle...and we want to put this experience to work for you! Please call us today."

While past results may not be the only measure of success, for The Harris-Peppe Team, excellence has become a habit!

Spring Cleaning!

Whether your house is listed or not, these following tips are recommmended for your annual Spring Cleaning!

• Clean sliding doors and tracks & lubricate tracks if needed
• Pull out and wash behind appliances
• Thoroughly clean stove, oven and refrigerator
• Wash blinds, shutters, dry clean drapes if needed
• Clean all cabinet doors, interior & exterior
• Wash and reorganize all drawer interiors
• Wash inside and out of all windows
• Pull out and vacuum under all furniture and beds
• Clean all interior room access doors, closet doors and louvre doors
• Organize linen closets
• Empty and sanitize under bathroom vanities
• Determine if any painting or corrective maintenence is needed such as screens repaired or replaced, decks pressure cleaned, regrouting and sealing, etc.
• Porch furniture cleaned
• Plant spring flowers

Remember, this is not your normal routine cleaning...this is the getting down to the "nitty-gritty' cleaning! So, roll up your sleves, open your windows wide to let the fresh air in, play your favorite tunes and have a Happy Spring!

Portability and Homestead information

For those of you interested in information concerning portability, the additional homestead exemption or other benefits of Amendment 1, please check out the Department of Revenue's website:

http://dor.myflorida.com/dor/property/sb4d.html

The portability application and other pertinent forms can be found at the DOR site!

Pulling out all the stops!

The stock market is up...interest rates are down...The Feds want you to start spending money! They significantly cut rates for the sixth time since September yesterday! They're pulling out all the stops to boost consumer and Wall Street confidence. While rate cuts sound good, people looking at buying real estate need to prepare for what may happen.

Fed cuts directly effect the falling dollar...Fed cuts are inflationary. Oil prices are up, gold prices are up. As a result, mortgage rates inevitably go up because mortgage rates are based on fixed income investments, long term bonds and mortgage backed securities.

If you are looking to buy a home and get financing, please consider this:
Home prices have to fall over 10% on average to make back what you lose in monthly payments if the mortgage rate increases just 1%.

There are some great housing buys out there right now! Real Estate is a LOCAL market, and it always has been! Written business in Naples was up in February. According to The Naples Area Board of Realtors statistics, pending contracts rose 10.6% last month, breaking a 28 month downward trend! The best barometer for determining the current temperature in any housing market is pending sales! Stop reading national publications that report real estate with a broad stroke. Instead, let's take a good hard look at what is for sale in Naples and take advantage of the amazing opportunities out there!

Foreign National Loans

We have had a lot of inquiries from foreigners regarding financing options, so I thought it would make a good blog topic today.

Depending on the borrower; if they have the equity on their primary home (in Canada, South America, Europe, etc.) many may choose to get the monies out of that residence then pay cash for their U.S. purchase. However, if they are seeking "local" financing the following is a recap provided to me by our in-house lender, Sunbelt Lending Services:

• Down payments starting at 25%
• Loan amounts from $50,000 to $2 million
• No American credit necessary
• Full Income documentation AND Stated Income documentation programs available
• Fixed and adjustable rate programs available
• Interest only payments available as well

Other pertinent information which I believe to be helpful:

• Most loans have a pre-payment penalty~usually 3 years
• Loan Limits and Loan to Value limits based on: Property type, Program type, Purchase versus refinance and Loan amount
• All borrowers must supply proper identification: Visa, passport & drivers license
• Most loans require 6 months of reserves deposited into a U.S. bank account prior to closing and authorization for withdrawal

*Obviously all programs are subject to change without prior notice. This is being provided for informational purposes only. For additional information please contact Kelly Rebimbas at 239-273-5239 (direct).

With the strength of our foreign buyer's dollar and the wonderful selection of properties in Naples currently on the market, there has NEVER been a better time to buy real estate than NOW! Log onto our website today to view our fabulous listings http://www.naplesrealestate.com/

Brand new ~ Dock Included

For nearly 27 years now, at this time of year, I have spent most of my Sunday afternoons sitting at open houses. I've met a lot of really wonderful people, sat at a lot of really beautiful properties, and sold a lot of real estate...Today is no different. I am at a condo called The Azzurro in an area of Naples called Oyster Bay. Just about a mile from downtown Naples and within walking distance to all the new Naples Bay Resort amenities...this is an area that is undergoing some positive changes. Many of the older homes and condos are coming down, making way for the newer, safer, more eye appealing residences that take their place. Unlike Olde Naples, the Royal Harbor area "tear downs" aren't quaint and charming...they are mostly 70's vintage ranches without a lot of personality. So, for the most part, I think all the neighbors are pretty happy when a newer building is put in the place of an older dwelling.



The developer of The Azzurro did a nice job getting 6 spacious condos on this southern exposure lot. The pool and deck area is huge, the landscaping is lovely. Each residence includes a 2 car garage and a 26' boat dock...and you are just minutes from Naples Bay! You have direct access to The Gulf of Mexico (no bridges) and a straight shot down the bay to the intercoastal waterway which, within just a few minutes, takes you to the 10,000 islands and some of the most pristine fishing waters in the world.



This is a special condo with fabulous appointments just waiting for 4 more buyers (2 of the 6 condos are already sold) to call The Azzurro home! I believe this to be one of the very best new construction waterfront values in Naples this season! Please call me today for a private showing: 239-250-4370. Thank you and have a happy Sunday!

The World according to Trump

With so many buyers out there reluctant to make decisions...and so many of our foreign friends listening to the negative media hype even tho' their "dollar" is the strongest it has been, when measured against American currency, in years...I came across an ad in the March 2008 Florida Realtor magazine that I felt was worth sharing:

"The World according to Trump:

With so many variables in the marketplace making it impossible to predict, the right time to buy premium real estate is always now.

Never put your life on hold- not for anything.

The worst decision you can make is not making one at all."

The Best Time to Buy is ALWAYS Now!

It has been a very interesting (tongue in cheek) week in the world of real estate. First, I had a couple looking at attached villas and carriage homes in gated communities in the north end of town. They were very specific in outlining to me their "wish list". I planned on it taking at least 3 trips out looking at condos before they would be clear on where they would end up mainly because I qualified that they didn't want to look at more than 5 to 6 condos in any one day. I had arranged a lovely rental for them through a past customer (normally I do not handle rentals). They were referred to me by an out of town agent who was familiar with our (The Harris-Peppe Team) success and work ethic -- After our 2nd outing I was pleasantly surprised to get a call from them informing me that they were ready to make an offer on one of the properties they saw the day before. The offer was approximately 20% below the already reduced price and considerably less than the last closed sale. Well, as it happened the seller accepted their offer! Probably a prudent decision based on the number of listings on the market in that area, the price point plus the fact that it is nearing the end of February and I'm sure the seller thought it best to sell at a discount as opossed to holding the property until next "season". I bet you can't imagine what happens next? Right! The BUYER has a change of heart. It seems after sleeping on it, he (the wife still wants the place) doesn't want to go home and confess to friends and family that he bought a place in Florida anticipating the responses from all that he should have waited until prices come down some more! Now, mind you, he's not planning on selling the place any time soon, so even another 5 or 10 percent decrease would not effect his purchase other then the fact that now he's on his way home (I hear the wife took another flight) to the bitter cold, and like his friends, he also doesn't own a winter retreat in paradise!

Just a few days later I received an offer on a listing that had just been reduced signifigantly to encourage offers. The seller's initial response to the offer was to counter. I strongly urged them to consider the offer because the terms (cash, no contingencies, quick closing) were excellent and currently there were about a dozen homes for sale in their neighborhood and only one under contract. I spoke with the other agent who informed me it was a firm offer as they had two other properties they were considering, but they would give the seller overnight to decide. By the time I called the seller back they had decided to accept the offer (which again, by the way, was approximately 20% off the already reduced asking price)! By the time I called the other agent back, the BUYER changed their mind and recinded their offer! Ahhh!

No kidding, in 27 years of selling real estate in Naples I've never had 2 different buyers back out of contracts in such a short period of time. It's a bit epidemic. In truth, the smart buyers ARE making decisions (and sticking with them). The smart buyers don't care what their friends back home will say (afterall, they know it's those very same friends who will be the first to arrive on their doorstep next season), The smart buyers are out today lounging around the pool at their new condo (it's about 88 degrees outside right now--a nice breeze--perfect)..or they're at the Art Show in Cambier Park...or they're having lunch at a sidewalk cafe' downtown, or maybe even out picking out furniture and paint colors. All I can say is they're a much happier bunch then the buyers going home afraid they'll overpay! Guess they never hear the old adage, "The Best Time to Buy is ALWAYS Now!"

Front row seats!

Imagine yourself in these front row seats...Stunning bay views of magnificent sunsets, dolphins jumping, yachts cruising by, pelicans and eagles soaring over pristine waters...

This is where your dreams will come true!

Call The Harris-Peppe Team to preview this rarely available and one-of-a kind bayfront residence. Beautifully redone; this multi-level 3 bedroom 3 bath townhouse is tastefully furnished and INCLUDES a 30' deeded dock with direct access to the Gulf of Mexico, a 2 car garage and private bayside deck! The top floor romantic master suite has a private balcony with wet bar, microwave and refrigerator. Video Tour

Call today, you won't be disappointed! The "best seats in the house" are waiting just for you!

239-370-0574

Florida Homestead Information

Every person who owns a dwelling in the state of Florida and who resides in that dwelling and in good faith makes it their permanent residence is eligible for homestead exemption. Once exemption is granted, a reduction of $50,000. is deducted from the assessed value of the dwelling.

To qualify you must be a permanent resident of Florida as of January 1st in the year you apply. You must have legal and equitable title to the property and reside in the property as your primary residence as of January 1st. The law does not allow new homestead applications to be filed prior to January 1st of the year the exemption is effected. However, property owners who are not eligible for the current year, but who will be eligible for the following year, may pre-file for the exemption any time after March 1st.

New applications for the current year must be made in person prior to March 1st. This is done at the Property Appraiser's office or at any office designated by the Property Appraiser.
Only one Homestead Exemption is allowed per "family unit". If you are applying for this exemption you would not be entitled to receive it if you or your spouse are receiving residency-based exemptions in another state.

The following items are required as proof of legal residence:

1. Evidence of ownership (deed, tax receipt, etc.)
2. Social security numbers of all owners
3. Voter Registration (if you vote) dated prior to January 1st
4. Florida Driver's license dated prior to January 1st
5. Florida Vehicle Registration dated prior to January 1st
6. If not a U.S. citizen, a resident alien "green" card
7. If your property is held in a trust, a complete copy of the trust agreement
8. If your property is a mobile home, the real property decal number and copy of the registration or title to the mobile home.

For more information about homestead log onto the Collier County Appraiser's website at: http://www.collierappraiser.com/MainHomestead.asp

or call a member of The Harris-Peppe Team today at 239-262-7131

From "Good To Great" in 2008

Our company had their "season" kick off breakfast this morning and unveiled some very exciting new marketing campaigns (Good to Great in '08), enhanced eMarketing strategies, presentations by our lending and title partners, plus state and local statistics from 2007 that I wanted to share on the blog!

U.S. Real Estate Statistics

• 1 out of every 16 households bought a home in 2007.
• 2007 was the 6th highest # of sales in U.S. history.

Florida Statistics and other Interesting Information

• Market share for Coldwell Banker increased 21.5% state-wide.
• 1 out of 3 of the homes listed by Coldwell Banker sold in the first 30 days of the listing. After 30 days, those with reductions were twice as likely to sell.
• Over 50% of the Coldwell Banker agents had an increase in business in 2007 over 2006.
• 47% of Coldwell Banker agents worked with an international home buyer in the last 6 months of 2007. 36% of Foreign Buyer's in 2007 came from Germany, 28% from the UK, 13% from Canada and 8% from South America.
• The median sold price for single-family homes increased by 52.5% over the past 5 years.

Naples Statistics

• Median sold prices from January 2005 to January 2006 decreased 4%.
• Median sold prices from January 2006 to January 2007 decreased 5%.
• Median sold prices from January 2007 to December 2007 decreased 15%
• Coldwell Banker closed unit sales was up 21% 2006 vs. 2007.

For additional information about closed sales in specific neighborhoods, call a member of The Harris-Peppe Team today. We are happy to assist you in making informed decisions...Let's all go from "good to great" in 2008!!

New Valet Service Downtown Naples!

Great news! Starting January 18th you can experience Fifth Avenue South like never before! Enjoy gourmet restaurants, world class shopping, galleries and live theater all without the hassle of finding a parking spot! On Friday and Saturday nights from 5:00 PM - midnight there will be two valet stations; one located on Fifth Street South just north of Fifth Avenue South and one on 8th Street South just north of Fifth Avenue South. The cost to valet will be $5.00.

There will also be a free trolley service with six stops along Fifth Avenue South from 3:00 PM - 11:00 PM on Fridays and Saturdays!

Don't forget while you are downtown enjoying the sights and sounds to stop by The Coldwell Banker Previews office at 550 Fifth Avenue South to say hi to The Harris-Peppe Team! Hope to see you soon!