Real Estate FAQs

 

 

General Questions   Q: When is the best time to buy real estate? A: Although this is a personal question to answer, here are some good reasons to buy: - You want to own, and not rent. - You are looking for a good investment property with returns to offset the costs of owning. - You need a tax break - mortgage and property tax deductions can make real estate ownership appealing. - You can afford it, and the Sanibel-Captiva real estate market is continuously healthy. Q: Are property taxes deductible? A: Yes. Property taxes on all real estate are deductible against your income taxes. If you itemize your expenses, property taxes and any mortgage interest on second homes are also deductible. Of course, the best advice to follow would be that of your accountant. Q: What are the property tax rates on Sanibel and Captiva? A: Although the actual tax rates are calculated in many different ways by local and county governments, you should figure 1.5% of the market value. Florida allows for various exemptions to reduce your tax burden, including a homestead exemption for the property being your primary residence. Q: What has been the annual appreciation for properties on the islands? A: Based on closed properties since 2003 on Sanibel-Captiva, single-family homes have increased in value by an average of 12.0%, and condominiums have increased at an average of 10.6%. Q: What are closing costs in a real estate transaction? A: Closing costs are a combination of fees, pro-rations, and special interest charges related to a real estate transaction. Fees that are charged for services include title searches, title insurance, and documentation fees. Pro-rations would relate to the taxes and/or property association dues. Special interest charges would include items such as escrow fees and upfront loan points related to a mortgage. We can provide you a good-faith estimate of closing costs prior to entering a real estate contract.