Marie Story-Broker Associate Pinecrest (Miami), FL

A 1031 exchange allows you to sell one or more investment properties (not your primary residence) and purchase one or more investment properties, allowing for the deferment of capital gain taxes that would otherwise have been due on the first sale.

It's a rollover of the equity in your investment properties allowing you to continue building wealth while deferring the tax.

If you think you would like to take advantage of a 1031 Exchange or if you have any questions, feel free to give me a call.

Fairchild Tropical Gardens, one of the most beautiful gardens in South Florida, invites you to visit for FREE every Sunday in August. So pack a picnic lunch and spend a wonderful day with your family and friends.

The gardens are at 10901 Old Cutler Road, Coral Gables, for more information you can call them at 305-667-1651

The main difference between writing a contract to buy a Foreclosed property (a property that is owned by an institution) and a Short Sale property (property that is in a financial stress but has not been foreclosed on yet) is control of the process.

Here are two contracts I am currently working on:

1. On May 8th I presented the listing agent a contract to purchase a Short Sale property. On May 12^th the contract was accepted by the Sellers. The listing agent sent the contract to the mortgage company for their review and possible acceptance, rejection or counteroffer. To this date, June 24^th, we have absolutely no idea if this contract will go through or not; Mortgage Company hasn't made any decision. In the meantime, the Buyer has his earnest money tied up. This contract is totally in the hands of the mortgage company and they call ALL the shots.
2. On June 4^th I presented the listing agent a contract to purchase a Foreclosed property. On June 18^th I was advised that the mortgage company accepted the offer and we will close within the next two weeks.

Both contracts would be good "deals" for the Buyers. But obviously Buyer #2 is a happy camper and Buyer #1 is out in limbo.

There is more to the mechanics of these two purchases, so if you would like to talk to me about Foreclosed and Shot Sale properties - just give me a call. 305-776-0010

Visit Me At: www.MarieStory.com

7/14/09 Update Buyer #1 is still waiting. Buyer #2 closed in June.

Coldwell Banker has held these "10% discount for 10 days" sales in other parts of Florida and they have been very successful.

I think the three L's of real estate should be replaced with the three P's - Price, Price, Price. Properly priced properties (three P's again!) sell. For folks looking to buy, you can't ask for a better time. The selection is great and interest rates are still very attractive. Also, I have noticed that since the tax portability amendment passed, I am speaking with more homeowners ready to make an inter Miami-Dade county move.

I wish I knew for sure what all this means to the Pinecrest market, but all I can do is share with you my opinion. I feel that if we haven't bottomed out already here in Pinecrest, we are very close to doing so. I'm seeing prices in the 2003-2004 range. I believe we will have a period of at least 12 months of a flat market before we see any upward movement. I am advising homeowners, if they do not have to sell - don't; especially those that bought after 2004. If they do need to sell, I remind them that wherever they're going to purchase next, most likely the prices have come down there also. So yes, you didn't make as much as you wanted to on your sale, but you're not going to pay as much on your purchase.

Real estate is local and cyclical...and this too shall pass.

If you price it right - they will buy. As with all properties; properly pricing a property was key in the 2007 new homes sales market in Pinecrest. I have just finished a market study of new homes sales in Pinecrest and found that 18 new homes were sold in 2007. The highest price per adjusted square foot, as per the Miami-Dade county tax rolls, was $498.75, the lowest $242.46 with an average price of $377.96 per adjusted square foot. The sales price of a new home in Pinecrest ranged from $1,800,000 to $4,000,000 with an average sales price of $3,193,315.

Important factors in the new home sales market are location, quality and amenities. Features that were once optional such as top of the line kitchen appliances, elevators, large master suites with beverage centers and a minimum of a three car garage are now expected in these upper priced estates.

If you would like to see sales graphs, click here: 33156 Graphs And as always, if you have any questions, please feel free to give me a call at 305-776-0010