The Anna Maria Island Sun Newspaper


Vol. 17 No. 14 - January 18, 2017

REAL ESTATE

What's so foreign about foreign?

 

America's the land of milk and honey and don't we know it? So do real estate byers from around the world to the tune of 209,000 properties sold to foreign buyers between April 2014 and March 2015, according to the National Association of Realtors. But how complicated do transactions with either foreign buyers or sellers get? They're a challenge, but very doable.

Since we live in paradise, so does every second home or investment buyer want to, including foreign nationals. These transactions can be more complex in both financing and in cultural differences. The biggest issue is planning for money transfers and/or processing of foreign borrower mortgages. Wire transfers and digital signatures have made this process a lot easier, however, sales agreements still need to allow for complications, especially when the buyer is probably back home in a different time zone.

Also, negotiating a sale price can be a totally new experience. Some cultures will negotiate every little detail until you're about to cry; others with real estate practices that typically don't negotiate will just accept the asking price. No matter who your buyer is, the best advice is to get good legal and real estate professionals involved who are familiar with foreign transactions.

If selling to a foreign national is complicated, buying from one is even more complex, since it involves the IRS. If you're buying property from a foreign owner, here are some things you need to know:

The Foreign Investment in Real Property Tax Act of 1980, also known as FIRPTA will apply in almost all real estate transactions with foreign owners. FIRPTA is a tax law that imposes United States income tax on foreign persons, selling U.S. real estate. Under FIRPTA, if you buy U.S. real estate from a foreign person 15 percent of the purchase price must be withheld. These funds together with a completed Form 8288 must be sent to the Internal Revenue Service within 20 days of the transaction. There are some exceptions to this law based on sale price, but it's a sure bet that most properties changing hands on Anna Maria will be subject to the tax.

The onus of paying the tax falls on the buyer of the property. Therefore, employing an attorney familiar with this could be the difference between a smooth transaction and a nightmare. Remember if the tax isn't paid to the IRS in a timely manner, it will become the buyer's responsibility to pay. There is no escaping the IRS it always gets its man.

Finally, Chinese buyers for the fourth straight year outspent all other foreign buyers of United Sates' real estate. They spent three times the amount spent by the next biggest group of foreign buyers, Canadians, per the National Association of Realtors. They also buy more expensive homes with a median price of $542,084 compared to the United States median price of $223,058.

But it's unlikely you'll see too many Chinese buyers on Anna Maria since, per Sotheby's, the only area in Florida that makes its top 10 list is Naples, ranking number seven. Southampton, N. Y., is number one, and Woodstock, Vt., is number 10.

So, if a foreign national is looking to purchase your property, remember he/she probably has a small window of time to spend house hunting, so make your home available. The good news here is he/she probably will make a quick decision. And in general, buyers shouldn't be too worried about dealing with foreign sellers, maybe just a little good advice and a lot of patience. Chinese buyers may not be interested in Anna Maria, but don't worry there are plenty of others who are.

Real Estate Transactions
Real estate transfers of October-November 2016 •Sponsored by Alan Galletto, Island Real Estate
Source: Mid Florida Multiple Listing Service

Sold Date | List Price | Sold Price | Address | Provision | Property Style

Anna Maria

2016-10-25 699,900 655,000 212 Willow Ave 1968  3 Br/2 Ba SFR
2016-10-27 1,250,000 1,250,000 775 N Shore Dr 1549 3 Br/2 Ba SFR
2016-10-27 650,000 765,000 512 Kumquat Dr 36x59x124x134 Lot
2016-10-14 550,000 515,000 515 Villa Rosa Way 77x87x113x107 Lot
2016-11-04 849,000 800,850 208 Archer Way 1898 3 Br/2 Ba SFR
2016-11-30 1,150,000 1,100,000 811 S Bay Blvd 2541 3 Br/2 Ba SFR
2016-11-21 1,295,000 1,225,000 218 Palm Ave 2200 4 Br/3 Ba SFR
2016-11-09 1,499,000 1,500,000 118 Maple Ave 2133 4 Br/3 Ba SFR
2016-11-01 2,500,000 2,500,000 773 N Shore Dr 1600 3 Br/3 Ba SFR
2016-11-08 4,500,000 3,950,000 717 N Shore Dr 3012 3 Br/2.5 Ba SFR
2016-11-16 649,000 600,000 702 Gladiolus St 1248 52 x 100 Duplex

Bradenton Beach

2016-10-21 239,900 220,000 2312 Avenue C #11 651 2 Br/1 Ba Condo
2016-10-05 299,500 295,000 2401 Gulf Dr N #3 667 2 Br/1 Ba Condo
2016-10-13 290,000 295,000 1801 Gulf Dr N #249 1080 2 Br/2 Ba Condo
2016-10-28 317,000 297,000 1801 Gulf Dr N #167 1080 2 Br/2 Ba Condo
2016-10-13 435,000 409,000 1000 Gulf Dr N #9 450 1 Br/1 Ba Condo
2016-10-05 570,000 560,000 1465 Gulf Dr N 1524 3 Br/2.5 Ba Townhouse
2016-11-09 1,650,000 1,650,000 2201 Avenue A 4793 5 Br/53.5 Ba SFR
2016-11-21 189,000 180,000 1603 Gulf Dr N #31 380 1 Br/1 Ba Condo
2016-11-01 239,000 229,000 308 2nd St N #202 520 1 Br/1 Ba Condo
2016-11-03 469,000 435,000 1007 Gulf Dr N #212 1259 2 Br/2.5 Ba Condo
2016-11-30 479,000 465,000 254 17th St #24 1268 2 Br/2 Ba Condo
2016-11-28 610,000 585,000 1473 Gulf Dr N #24 1524 3 Br/2.5 Ba Condo
2016-11-02 485,000 425,000 1701 N Gulf Dr 1113 43.0x98

Cortez

2016-10-28 1,449,000 1,375,000 12909 42nd Ter W 3209 53x121x54x124 4 Br/4 Ba SFR
2016-10-17 409,800 390,000 4104 128th St W #706 1994 2 Br/2 Ba Condo
2016-11-25 589,900 555,000 3905 Mariners Wk 811 2135 3 Br/2.5 Ba Condo
Date Closed List Price Sold Price Property Address SFUA Lot Size Description

Holmes Beach

2016-10-31 375,000 360,000 414 80th St 866 2 Br/2 Ba SFR
2016-10-31 499,000 475,000 2920 Avenue C 1500 75x104 3 Br/2 Ba SFR
2016-10-18 609,000 555,000 510 68th St 1494 3 Br/2 Ba SFR
2016-10-27 724,900 695,500 7304 Holmes Blvd 1592 2 Br/2 Ba SFR
2016-10-12 1,690,900 1,610,000 510 58th St 4100  4 Br/5 Ba/2 .5 Ba SFR
2016-10-31 322,100 302,000 3000 Gulf Dr #1 756 1 Br/1 Ba Condo
2016-10-10 329,900 310,000 3801 E Bay Dr #107 1121 69 x 246 2 Br/2 Ba Condo
2016-10-24 319,000 310,000 6500 Flotilla Dr #235 1140 2 Br/2 Ba Condo
2016-10-14 349,000 325,000 6500 Flotilla Dr #126 985 2 Br/2 Ba Condo
2016-10-21 685,000 665,000 303 74th St #A 1400 3 Br/2 Ba Condo
2016-10-03 1,288,000 1,020,000 216 52nd St 3155 4 Br/3 Ba Condo
2016-10-07 379,900 365,000 6401 Holmes Blvd #B 960  2 Br/2 Ba Half Duplex
2016-11-18 399,000 385,000 21 Seaside Ct 1050 2 Br/2 Ba SFR
2016-11-07 499,000 465,000 7606 Marina Dr 1568 3 Br/2 Ba SFR
2016-11-01 550,000 540,000 502 69th St 1180 97x103 2 Br/2 Ba SFR
2016-11-30 529,000 570,000 532 Key Royale Dr 2300 4 Br/3 Ba SFR
2016-11-21 759,900 675,000 307 Clark Dr 1600 3 Br/2 Ba SFR
2016-11-30 850,000 820,000 604 Gladstone Ln 1990 3 Br/2.5 Ba SFR
2016-11-08 889,000 860,000 308 55th St 1981 76 x 99 3 Br.5 Ba SFR
2016-11-28 985,000 895,000 312 60th St 2356 4 Br/3 Ba SFR
2016-11-23 1,200,000 1,05,0000 211 Haverkos Ct 2674 4 Br/2.5 Ba SFR
2016-11-10 1,390,000 1,100,000 5601 Flotilla Dr 3144 3 Br/2 Ba SFR
2016-11-28 239,900 229,900 448 63rd St 740 7 Br/6 Ba Attached SFR
2016-11-15 297,900 280,000 6500 Flotilla Dr #157 1377 2 Br/2 Ba Condo
2016-11-10 399,000 370,000 6500 Flotilla Dr #193 1295 2 Br/2 Ba Condo
2016-11-07 499,900 479,000 3013 Avenue F #U25 984 2 Br/2 Ba Condo
2016-11-18 575,000 540,000 2909 Avenue E 1697 50x100 Duplex
2016-11-04 549,000 528,000 305 62nd St #A 1564 75 x 101 Duplex
2016-11-14 1,175,000 1100,000 535 70th St. 66x116x186x125 Lot


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