Buying – Info For Canadian Buyers

How Important Is Location Here In The Desert?

If you’re a first time home or condo buyer in the Palm Springs area you might be interested in a series of articles that I posted online over the last few months that are linked from our Information For Buyers web page.

Location is near the top of the list for most desert buyers, and yes it is possible to by the right home but in the wrong location. The old adage of location, location, location, is repeated three times to emphasize the importance of location. It basically means that similar or identical homes or condos can be valued differently based on their location.

Once your agent helps narrow down your overall location criteria, s/he will then help you discover your location options within each community to form your ‘short list’. One example is sunlight exposure. Year-round residents and winter residents will likely have different needs and preferences.

Jump to the full article: How Important Is Location?

Buying A Palm Springs Area Home: The Missing Rolls Royce

I recently sold a luxury property at a La Quinta golf club. About 90-days later Zillow™ displays the property sale on their real estate website as being sold for $675,000.

What Zillow doesn't mention is that in addition to their stated $674,000 selling price, the buyer also traded personal property in addition to cash, which in this case was a late model Rolls Royce (new value: $375,000). Bottom line here is the reported selling price was understated by a large amount.

La Quinta Home Sale Price Off By $115,000
Another luxury golf course property I sold shows sold at $1.1 million on Home-Gain™. This sale price actually also included a golf course membership valued at $115,000. In this case the property was over-valued by $115,000 as the buyer got a free golf membership. Deduct the country club membership and the home sale price was actually $985,000.

I’ve seen $300,000 condo sales where trulia’s sale amount was off by $50,000 and I’ve seen $9 million homes where Zillow is off by $2 million because they simply don’t have all the information.

Public Records, Not The Live MLS Agents Use
Most people don’t know that Zillow, trulia™, Home-Gain and other shopping sites get their information from available public records and not the local MLS. Most of these sale records don’t show up for 90-days or more after the sale. But the worst part is these sites do not have access to the whole story. Only local agents with access to the agent side of the MLS have ability to do some detective work, which includes speaking to the selling agent.

For home buyers, these sites use dated listings instead of live MLS feeds. I receive calls everyday from buyers looking at homes online that actually sold 60-days ago. Home sellers too can be misled on the value of their properties.

A local licensed real estate agent has access to all the information and resources needed to give buyers and sellers accurate and timely information. A local agent site (including ours) will also usually feature live MLS listings.

Could it be that Zillow’s tag line of “Your Edge In Real Estate” needs a little sharpening?

Buyers Tip #12: ‘Woulda, Coulda, Shoulda’!

We all know that past experience can offer valuable lessons. One lesson in Palm Springs area real estate we see with buyer clients once or twice a month is the ‘Woulda, Coulda, Shoulda’ experience.

‘Woulda, Coulda, Shoulda’ usually happens when a prospective buyer finds a property that’s really just right for him/her. The home or condo has all of the potential buyer’s preferred features, a great location, and appears to be a solid value. Even when many of these prospective buyers believe that they have found the perfect home, they decide to take a few days to think it over. Makes sense doesn’t it? Not always.

On a regular basis under this scenario another buyer discovers the same dream property, acts on it quickly, and makes an offer, which is then accepted. A couple of days later, the first potential buyer decides that it really is the perfect home and shares what is sure to be great news with family and friends only to find out that another offer was accepted and the property is no longer available.

Avoiding ‘Woulda, Coulda, Shoulda’
There’s a simple and secure way to avoid this potential mistake that many savvy buyers take advantage of. When our buyers make an offer on a property we include a contingent period in the purchase contract that is usually 17 days. If and when the seller accepts the offer, our potential buyer has those 17-days locked in from the accepted offer date to complete due diligence and ultimately move forward or decline.

The due diligence period during escrow is known as the contingent period. Most of our buyers will ask us to order a property inspection, inspect any included inventory (if fully or partially furnished), and receive documents from the HOA for their review during this timeframe. At any time during the contingent period, and for any reason, a buyer can decide to pull the plug without penalty or obligation. The client’s earnest money deposit is returned and he/she is free to move on to another property.

While we don’t encourage offers on just any property, if we find a property that feels right, fits your budget and looks like a great value, consider making an offer ASAP to avoid kicking yourself later on. The property that looks best to you usually looks just right to other buyers too!

Canadian Buyer Information For Palm Springs Real Estate

Investing in a second home or investment property here in the desert is fairly simple for a Canadian citizen. Our goal is to make the process simple and straightforward for our clients. We regularly assist Canadian buyers in finding excellent real estate opportunities be it a condo, home or land for a custom home.

Condo Versus Strata
Here in the desert a condo does not usually refer to a high-rise community as found in many Canadian Provinces. While there are a few high-rise developments here, most condo communities in the desert are actually single level or two story buildings. This is similar to Canadian Strata communities. There are a wide variety of condo types here including those with no shared walls. Condo communities usually offer a 'lock and leave' lifestyle where exterior building maintenance, insurance, landscape and more are taken care of by the condo association or Home Owners Association (HOA).

Canadian buyers generally don’t need a U.S. Social Security number, just a valid passport. There are a few forms that we will help you complete, but the process overall is straightforward and fairly simple. An attorney is usually not needed, since our team is trained to process all the escrow papers. If you plan to rent your local property, producing U.S. income, you will need to obtain a U.S. Taxpayer Identification Number (ITIN) from the United States IRS which can be done online. The ITIN is used for reporting of income puproses only.

Here's What Numerous Canadians Are Taking Advantage Of:

1. Historically low real estate prices in the United States
2. A perfect sunbelt location for your dream home away from home
3. The best inventory selection of homes and condos in many years
4. A strong resort rental market for owners wishing to rent their property
5. A strong Canadian Dollar
6. No GST or HST sales taxes on real estate transactions or agent services
7. There is no Realtor fee when you buy a property as the seller pays this service fee
8. The desert cities of La Quinta, Palm Desert and Indian Wells offer discounted golf and social programs when you own property in those cities

Property Taxes
Annual property taxes in Riverside County are set at a rate of 1.25% of the appraised value of the property. The new appraised value will be set at your purchase price, even if the previous value was higher. Annual property taxes are divided into two payments and paid semi-annually. If you are purchasing a property via a loan you can request that your lender add the property taxes to your loan amount each month (called impounding taxes) with the lender then paying the property taxes for you.

Some communities in the desert may also add a supplemental tax called Mello-Roos which funds new infrastructure for the communities. Your Realtor can tell you if a property is located in a Mello-Roos area.

Canadian Buyer Loan Programs
Mortgages are available here for Canadian buyers. In fact, financing your investment might just be a good option during times when the Loonie is lower against the U.S. Dollar.

When financing, a buyer will just need to establish a U.S. bank account before submitting an application. The financed property must also be a second home or investment property – not a primary residence. We have several good mortgage company referrals for Canadian buyer loan programs. Please don't hesitate to call for more information (loan programs are subject to change by lenders).

• No social security number required
• No credit scoring – no credit report
• No U.S. residence required
• 50% down payment
• Minimum loan amount of US $200,000
• Full documentation
• No pre-payment penalty for early payoff
• Second home only

It’s About Your Lifestyle!

Clubhouse pool at Andalusia, La Quinta

Most of my clients are investing in a lifestyle for their family and friends rather than just a home or luxury condo. This is about much more than real estate. It’s about finding just the right fit for your lifestyle and dreams here in the desert and about finding your own special place in the sun.

At the same time, everyone is looking for a great deal. My role, with most of my buyer clients is that of a matchmaker, investigator and negotiator. While anyone can simply sell a home, I take pride in helping people invest in a lifestyle that’s a great fit here in the desert.

I welcome the opportunity to serve your real estate needs. If not me, you’ll want to choose an agent that is busy, successful and experienced. Personally I choose my tax advisor, doctor and dentist the same way!

Please don’t hesitate to contact me when the time is right – even if you just have a real estate question. I will return your phone call or email promptly.

Sheri