1031 Exchanges, Access Easements and Pest Control

Your Real Estate Today
Friday, April 13th

Marty & Sam Ivey of Ivey Exterminating, and Nick Bolling of Kostner Law Firm join Paul to discuss 1031 Exchanges, Access Easements, and pest control.

00:40:23

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

And advice provided on the following program is on an individual basis listeners should not consider today's discussion has a recommendation for. Any investment and she carefully evaluate before investing. Did you see you were we listening to. It was all eleven and WBZ. Hello and welcome to the show your real estate today boy it is going to be a big. Packed day today we have so much to talk about unfortunately we're not live today like usual. But we are sure you're gonna enjoy this time there is so much information in this next hour you need to stay with us today. Again I'm Paul Jamison your host with Jamison realty with Keller Williams Jamison property management. I have a packed house in here today. So here's who we've got we've got nick from Costner bought nick welcome back as good to see and needed to be back in it to be back yeah thank I think Josh you know it's. Has just kind of throw you into the fire with us and we're glad you're here Latvia and we appreciate all cost analog does first and of course my dear friends. Mardy and Sam I mean Marty welcome back friend. Glad to be here Powell thanks for having Sam how you doing doing it today thanks alumnus Paul yeah glad to be with you off and not only. Do these. Three men. Have a lot of information to share. These three men right now are doing an awful lot of work hard this gets through. Help with the cost no law firm as the law firm of choice for us whether all of our. Different closings but they're also helping me with 1031 exchanges. Which we're gonna talk about today they're to we're gonna talk about access easements today. And whatever comes out. We're now about that Marty is right now treating a pad for me over my personal caught our eye out. I'm holding them in my wallet today. And we're gonna about termites Marty rightward to about carpenter bees mosquitoes and ammo war and more. Crawl space pants were they with went all throw at all we'll throw it all right and it's going to be a bug Rama that's catastrophic. I don't know say a month I'm telling ya think you know right now. If if I go into some of these houses I'm really seeing. The activity. Of the bug world. Is alive and kicking and and move in and just. I mean why. All it's all over the place I can't tell you how many crawl spaces I've been in lately. And to see an air forge around and saw the crawl space work and up in southern homes and so we can definitely get you taken care of that. Well you know Marty warned us what was it Marty about two weeks ago when we were on again that's how some clairvoyant. I don't know I think you understand the my patterns of my client my grandmother was miss Ian hoops for. A well. The last time we all got in trouble because we. We compared lawn mowers with cats so we're not undo that Vista no good cattle do that I stop now we're not there. I got so many calls Iraq I'd on the catwalk there's OK so so the the the thing about what or don't talk about. And in Marty talked about it two weeks ago so go back to his pre recording and you can also hear about cats but. You predicted that this year. Was going to be but they a year of tremendous activity because of. All of the energy that has taken place. Over the wind yeah. Gotta love mother nature the snows that we've had the cold weather we had it what it does it puts a lot of stress on these insects. And you know with with stress comes change of behavior and insects they don't have free will. So they're very good about managing and taking care there hasn't said when when they get the the right weather temperature and and sun and everything is going world right now they pop and they pop parties Columbia. It is my my dad would say this note that we had during the winner even that we don't give a lot here but the cold weather and what little bit off ice and snow we had. It just drives them and sample I mean that was what my dad used to always says so when this app prizes in the three. Let's rock and Oakland bugs coming out. Well. I can just tell you from going into these houses that I've not seen this kind of activity before so I look forward to talking about some of that today. Nick you know what right now and I'm gonna skip around a little bit 1030 ones as the primary thing we're gonna talk about today but. It's very very interesting to me because I deal with a lot of investors and I'm not throw you a little bit of curve ball but it's kind of funny. Are one of the things with him back funny to me yeah yeah funny enough hah hah funny but funny when so. One of the things that I have had to do recently and I thought about it on the way in here and I haven't talked to Terry in your offer (%expletive) about. Is I need a new agenda and for my investors. The current would you have any idea we've got to bed bug and then them. We have a molded then them. We have a smoking addendum we have a drug free addendum. Meaning an attachment to the least and it hurt all your maxed out that says this is that Marty just hit. We made that now create a curry and then. That that's going to be a difficult ones and in the world we called CC which is occurred all's Currie calls now listen. We have we have the we have. Had to deal where. Remediation. Related to occur. And you would think. Under normal circumstances this would not be a problem nothing different than garlic right. If you do not ventilate properly is the home does not mentally property. You literally have a problem when you're with Kurt and I can understand that actually lived for. I moved into our house electric currently and we had a problem with them in the apartment complex we lived and we had a calming this more than three times a year to come seal off. You know below us. That on the weekend and we'll probably get something together that. Requires them to then only arm requires them to you you proper cooking techniques are not seal the house like you would do you in any sort of normal cooking an area. You know Tom that wouldn't be not just limited to curry open. Any any type of food he smell every day is coming in and I'm. I mean it sounds like a slippery slope but it is truly. Something that is causing a problem. Are we know we've noticed in some of the other states that have legalized marijuana. That there are facing some of these same issues in the ventilation systems and that's the canals and as we don't limit it to you. Perry's meet it's bound to I guess should we just go ahead and add an error smoking of herbs and spices and stuff and what we are way out of the Lilly is an Alice get an all encompassing and other than we've had we've got to being called and our child that we got a Bentley after. That's a small one that's a Smart on I guess. Jan where are you wanna major yeah yeah and you could look area are. So. 1031 exchanges. Ants termites. And I'm gonna talk a little bit about how to screen for retirement I think it's important a lot of laws have changed. After Eric Holder left office there were a few little gifts he left behind for landlords that we now have to face and deal with so. We're gonna talk about that a little bit as well. So. Sam and and Marty we're gonna probably kick off this next segment with you but let's go ahead and get started weeks we started talking and because I wanna spend a little more time on termites in mosquitoes and carpenter bees but ants piece of it. That enhance I have I have. Come out already yes they have Paul in what what people don't realize is is. He thereby Wilson likes lush landscape it's a big thing right now in our love landscape. You know I recently started that was going to be a landscape architect is what I originally planned at the but. The crazy thing years is when you have my slush landscape is you have a lot of insect population within that landscape and and you have late eight hits in late bugs which steel plants which create a sugary type substance at a residue from the feeding which is called honey do in honey do is a natural foods or brands. Wolf what happens is when you had this much less landscape in up against house. It's automatic how away when the saints come up on these plant growth to feel this honey do to be another in six. Are feeding on. It's just a natural Holloway formed through to progress on up into the house. Especially when we have a lot of heavy rains and it's no good go to higher ground. You can a lot of times watch can't BK Ager in determined. What kind of going home and weather pattern. When we have to carry little umbrella Medicare lumbar L sometimes he'll have a like us. No life preservers on what you've got to hit the hanging on to hide it united the panel how the sun is you may MCM with a canoe over. I she's the team effort that's a good answer. Mr. what happens is is the mostly migrate up in a house. They love temperatures owner of about seven degrees they'll chase set temperature around the house and Hannah. Depending on how the sun hits it. And what's the new house are tough to get out. Yeah. Well I tell you what I love the patterns of life certainly good gonna love mother and people keep moving too so we like that. This is the show your real estate today show you stay where the son Paul Jamison your host. We'll be right back on 1110993. WBT. Welcome back to the show your real estate today. Happy Saturday to him wherever you are figure out about today and we're here talking about real estate and we are glad to do that and love to do that. Ten plus years we've been donuts so glad to keep it go on. Here with nick from Costner law and Mardy and Sam from ivy exterminate and of course I'm poll Jamison your host. And we're happy that your whether so. Let's just jump right into it now let's talk about 1031 exchanges first of all for those that aren't aware what are they. What's the purpose why do it and and then let's talk a little bit about the let's drill down a little bit farther what is a 1031 XT. Which simplest answer for what is it 1031 exchange is section 1031 of the iris coon allows you to defer gains are capital gains from the sell a property. So long as you transfer those proceeds into the purchase of a like kind property. So you would want to do that is if you are in the business of investing in real estate. Maybe you have a ten and they animals to buy you out at a good profit annual team continues stay in the investment business you gonna buy another. But you don't want to have to pay capital gains tax on every time you sell and buy new investment property. So the IRS subject is some very strict regulations that will let you. Transferred the proceeds of the house that you sold. And T in another capital get into it and then use that to purchase an improper for yourself. Right and in the IRS will not tax she under the capitol cancels. Right eventually if you do not continue to defer. Those funds. They comical and take Arizona number on a neighbor and money that exactly to a later date and that was as well as it is going to tax deferred not tax exempt site. Right don't keep following the regulations. Tax man's gonna come Colin Wright and you know payback. Right and I know we don't have and we could talk about this for a year exact I learned something new every day about it yeah. We do a tremendous amount of those right now we've got several million dollars of 1030 ones that were working on for folks. So one of the things. I think people. Ask me the most is well I just sold my primary residence do light. Need to do a tax free exchange and the answer of courses and that's very it's a narrow. Com do you need to start the 1031 exchange prior to the transfer of the house that yourself right but primary residence. Has a whole different set of tax are excited to it as that don't. You don't have to do that and 31 correct on there a bunch of other exemptions that the Harris grants for primary residences. Tia and most the ones are yet to lived there for at least two of the last five years we're looking at 250000 dollar exemption per individual or 500000 secure America right or as I always say. I'm not a tax and so on please consult your tasks opened for more information but I did have a good night's sleep last night and that is the way that I remembers well the his neck and neck that's what people call our office some and that's the first thing I'll and a talent I'm an attorney I'm not a CPA yep I'm consult with your CPA because the higher risk food. You could not fit in those libraries. So you'll someone who's an expert on exactly OK so. 1031 exchange. They've bought a piece of investment properties several years ago they paid a 100000 dollars for over that period of five years. They have depreciated. That a 100000 dollar asset on their taxes. So what they call. That that number now is called the basis run for so let's just say for conversation purposes the basis is now 50000. Dollars. Okay and they wanna sell. And they sell it for a 150000. Dollars now what happened. So they're so. Further 150000. Dollars the great thing about these section 1031 for real property and as it specifically talks about light come. Right but like in real property can be anything you can take 850000. Dollar. Let's call single family residence and turn it around a bike commercial real property for a so in the like con firm. Real property is really get for investors because is very broad. Right there's also like kind exchange is for vehicles and stuff like that that you couldn't turn a car and to drop. And it's harder that weigh in but if you take the basis from the property putting an instinct. You can increase which you buy you can decrypt what you buy an inning game consult with that CPA could you may get hit. With some of the taxes if you pershing for less than watcher actually takes taxing. Right that typical rule as I remember it is is it fits a single home you can designate up to three. That's a selection of selections or designations. Or up to 200%. The actual deferred values so if the deferred value. After you sell and pay commissions is a hundred in. 35000. Dollars on that 150000. Dollar house then you can actually. Designate. Up to 270000. Dollars or three individual property. Correct some certain to go through the entire process and quick little notch talent got there gallows and I'm not taking notes here comes. I'd sound investment property and I wanna sell right so I'm gonna go talk to what's called qualified intermediary for that and talk to Paul. But then then and then nickel you infiltrated the need to do you do understand while we have an agent in this process that you need together speak where first CPA. Future team ready you're CPA eager turning your realtor. And then you're going to you're under contract to sell your intent. Then you have at that point from the time that you sell so the date indeed is signed over the closing has confirmed you've got 45 days. And that is a hard for our rule now 45 business days not evidence on Christmas confidence on Easter. You've got 45 days to identify a replacement property rights and that goes back to what you're saying you can she's up to three properties. Or each one for each one or more you can go up to the 200% of the market value on the relinquish properties of the property that you just sole right. And and then if you did want to identify that piece of property you now have 180 days still from the date that you sold right to complete that purchase. Right so people ask me would once I designate. Why would I need six months to purchase of property. And interestingly enough there's a couple reasons one is it may be a piece of property that is not for sale yet. Or maybe new construction. And if it's new construction and it takes time for that sailed to go through or if it is. A commercial piece of property or need resounding or other kinds of things if you designate it. That gives you the time that claim to complete the transactions that what you found anyway gigs. Ackerley designate department 45 day year old has no exceptions no exemptions. Barring a government shutdown kind of thing on but the 180 days has a little bit of exceptions to excellence the clothes in December. Of that property you're selling you have either this 180 days or the time which takes you file attachments called April 15 tax day. Plus any extension G five to do that. So the 180 day rules say it doesn't that. Property select. This doesn't close for some reason you you Fonda's got a bunch of bugs that he and Traficant take care of asked what I don't know I. You're not gonna get end of that property gonna wanna select another one cast send. That's why and and they give you a lot of time to actually close on the proper closing takes little bit longer than a defined in this kind of those markets these are fine I guess than it is to close ups. Yeah and that's what's interest thing about it is is you really got to start early. The designation process and identifying and making sure you vetted the properties that your gonna close on. In that in and so you don't waste that 45 day period so I typically encourage people let's get the power team together early. Let's you know let's work on getting it done a lot of these properties come to us in LLC's. My. And they guy like. They got to go out as an LLC with some except it was a minor exceptions name do you when you come and asked ambulance amount and trust at least and trust you by the first at least as a person. Yeah you by as an LLC. The only way can leave as a person is if that in your tax return you file under your Social Security number not a tax ID you know. Currency you're using LO CU re probably taxing yourself as a partner or as a pass through you know not as used when you set up that LCU applied for and EI in number right so if you're LC has a tax ID number. It's got to come in as ilsley has steadily as the L. Now and people say will want and I just do a quick claim deed. Right before I close. In two. My individual name and then transfer and evidently it has to do it has to wait a year and a day. This has nothing is 360 plots is slated to plus one yeah. And it's before that. That can be be done so. Good stuff we've got more to talk about related to 1030 one's. We're gonna talk about access easements worth about everything we can't Marty's gotta be back with some termite. Turmoil. Now. And some of these assets to do with the the show euros that today I'm Paul Jamison your host Jamison realty with Keller Williams Jamison property management happy Saturday stay with us on the show. We will be right back on 1110993. WB's. To. Welcome back to show you real estate today happy Saturday to. We apologize that we have to pre record this week. Which is abnormal for us we'd like to be alive and take your phone calls so. Certainly hang on to those questions and either give us or call 846 dominate for 63663. You can also reach out Marty B 7043341616. Or. Abbey dot com. Pummeled give me some luck and if you have a legal question and you wanna talk to nick. And he is always available to you with the exception of Sunday's eleven to one. I just learned that army and had a terrible policies I threat how to they get in touch with you all Costner. I'm baking sheet me any Melamed knicks got bowling that's veto it LL ING at Custer group dot com or I'm happy to give up moderate number of that 704901134. All right well. That is certainly. A great benefit we we continue to work with both of these groups. To solve a lot of the real estate things we have going on all right Marty. Powell your favorite subject every year about this time has to do we. Termites. And why would that week. Because we're in termite mating c.s in there is no season like termite made the the this time a year AG is typically the only chance that homeowners yet. To realize themselves would argue in the professional involved that they may have termites and so Bob eubanks is not moderating this net now and now things now. Now okay. But anyway what happens is is termite. Through assist their server on different reasons mainly they're. This time year. The soldiers who guard the colony gives an affluent buyers they go to the queen and they tell the queen hey. We need all this group's work we can get for you what a lot of people don't realize is. Is when termites are doing damage to your home. They are feeding on your home and they're taking that food source back to the queen. In regard today to regurgitate eating to the queen is she's taken that the you'd. And she's taken out of that or she needs to survive in the and she's tumors redistributing that food that her sweat glands. And threw her fecal material to the other term ice in the colony. And sweating. When looping Klain Al attractive is that that's an end a termite world that's pretty cold. And what happens is this because a juvenile harmonized. In that and that mood that she redistributing it to the rest of termites in that juvenile Harmon is a sterile edited in calls is the whole colony. To be a slave Herbert cult they can't reproduce. Well when the soldiers come back to the queen this time a year. They say we need all that sterile edited that juvenile Herman and all that. That we can get you indeed the provost certain portion of the termites from that food source and when that happens what happens is is that. The sterile termites then stores to become furcal they changed colors are typically eggshell white. They changed colors and they turn black they grew wings and they do a mating flight. And it's mating flight they'll swarm out the go to the sunny side your home reform and adding your home always gonna go torture wind it was sunny. The gets a lot of sunlight and they'll kick their wings all. And they try to pair off male and female if they make it back program there's a reasonable chance he'll story not a colony. And this is some that'll all homeowners come home and they see it this time a year and I think. Always it was just one day thing it's funny thing for me to worry about. But what that really tells you is yours is something going on in that house this recurring every day you just don't see it after. And we we have people all the time that we had one last month that the homeowner told me. Well this been going more for like 1520 years and I never thought it was a big deal locals it was just one day thing. Well I went underneath crawl space they probably had two point 125000 old worth of damage. That they had never had addressed and I just again mystified why people just don't think it's a bigger concern that her while they continue to kick that. United what I call can connect hand to the curb. It's just fascinating to me but if you come home and you see that you need to call us and have a command take a look because you've got termites in the house in his Colombia on going problem. 365. Days a year 24 hours today so you need to have better address. Fortunately we only have one type of term I hear that eastern. He the least aggressive ball. Termites to survive and he. He doesn't do a lot of structural damage overnight easily taking a year to do some structural damage. But it's on that's you need to get address and you need to have a qualified expert look at Marty. One of the questions and I've always had is there's too. Primary types of treatment right there the bay system which is. Those little green things in the ground they're like a sprinkler heads but they're not right. And then there's the more of a chemical pregnant or what do you call determined or plumber or there's there's a lot of different products after chemical products that we use for termite control. You know we lost chlorinated hydrocarbon the court things in 1988 is when we lost this product. What came down the pipeline after that they weren't were not real good products. And then they came out with us special formulation of products that refer to as the non repellents that means that once you put the chemical down the term I don't know if they're but it affects him and eliminate team. In the best product that came down that pipeline when these non repellent started occurring was a product culture Herbert or interment Aureus Baath far without a doubt. The best product we've ever had. Two armored or the active ingredient in that product is a product called for an all. And if you got a dollar cat that we're the go to the vet and they put the spot on the dollar for flea control. Or that if you look on the active ingredient that it's very likely an active ingredient that is repulsive it's a pretty safe product. We apply these products along your foundation here is remix here in the crawl space we drill preacher Meister voids so very effective product it's a safe product. Angie did to my house correct correct. That the other products you talk about is abating program. But he programs do work the problem with dating programs are is. You're relying on devices sit in yard. That's got some type of cellulose wood product unit and it is in there Indy it kind of works on the premise that the termites blind can detect would fifteen to twenty feet in either direction in trouble up a thousand yards on fourteen day period. Yet they do work. But there's so many things it within our world compromises. Those those baiting program one if they feel awful water. Termites whole league Malone and once you get termites fee known some if you disturb this purpose termites. He may for a forced them into a random. Food search and if you do that they may not come back. In ever continue to fill up whole water occur might won't go away and it. The other problem is ants love these baiting stations in their love to get them in Leon. Old and is an actual enemy to the termite hilly to curb light therefore do not get what you're trying to achieve with the baiting program. Other things are a few head with a one more hit it was an area later you doll she's a gut. You landscaper covers it it all copper rises the east these programs. So so what so why understand clearly. The termite is smell in the will there's all else will I'm like you know like you got a little many barbecues ranked one of the great things in their head in toward support right okay so. So. They don't go between and they go towards the would now what if they did they must not pass somebody we do see him a lot that they fail at what they've done a garage I mean Howard there's you don't put one of these things in your driveway and this is what's the craziest. Is this termite goes through the ground top five inches sold is as natural travel zone. And he's taken his memorable feast tool Leisle arms will top what is it. In he's granting full particles and he stacked come in he's building a low round how. Lot of he has to gluten blissful particles together with a slob in this they commit here. And third that this slob and fickle maternal health and food source directors food source and every inch within now how weigh how far they are to the food source and back the queen. When you build les how waste is a lot of work. So what they do they like hit a hard line in this in the top five inches hole. And the reason they wanna hit a heartland it immediately cuts or workload down and have instead a build around our tunnel they built a half of our common use horrible and his they'll have that now. Biggest heartland top five in sold rob white. Where is probably lead to Rogers porches and pay ideas were karma always shall Rogers porches and pay ideas. And it's just that simple the problem with the lady program Zia's there's a lot of gaps there's a lot of gaps. Anders a lot of opportunities for fager who just because you're on a slab though doesn't mean that that's gonna end up Bennett that termites an equal opportunity or quarter he didn't matter back a bit of difference to him. If we we have. Term life that we see every day all concrete slabs. They come off the wall behind the sheet rock we've got one that. May still be on our web site where they come up wall and they eat the picture I'll hang in on the wall. Woman was mayor every day to the spreader and she never noticed that to give as cults have my 433416. Once it. Oh my goodness. That picture. Was that a picture can. It's. Well they're right back did have her here on the show your real estate today Paul Jamison Marty Sam IV. Nick Boeing we will be right back stay where this here on 1110993. WB. Welcome back to show you real estate today called Jameson here. Has TJ is dancing in the studio to do that. And while and assess all soft plaque I saw black the other day that said. There that was written like a letter it said yes you actually canned its low vodka and so. And the open government thought it was pretty good yeah. So anyway we written talking about. Termites and we're pre recorded today so happy Saturday. Even though it's not Saturday while we're doing this. And at the break we started Evan and discussion I just wanna make sure you all have the benefit of this discussion. Before we move on with neck and talk about. More 1031 exchange things and and also builder contracts and access easement so we got a lot talk about with him to. Marty I ask you the question earlier in. Nick followed up with a was. The bait stations. I mean do they do they really work I mean it seems to me like it's pretty random. And also. Why would somebody not. One the most effective way to do it when it's a well policy great question. You know AP the people get nations in their head in it in the is through time and pressure arming. You know we're constantly being in. Massage I think massage. Two to our beliefs and to the way we thing is is you know they do it through marketing. You know I I talk about one of the things that. A lot of people don't know this but. My brother and I used to be in the in the photo marketing business the photo finishing business and we Saul Kodak command in what they could the with the marketing campaign. Which was called the good look. And they brainwash the customer that the Kodak paper was the best in their chemistry when the best one and land that really what the truth Fuji film was the best him by far hot chemistry with the best. But it was fascinating to see how they brain washed the general public through marketing. And that happens in every industry and in half is happen in our industry you know these products came out that time with the green movement that it was very. Popular to be green in and these these stations is ran out in a four. Friday it was timed at the right time because we have lost a chlorinated hydrocarbons the court things. Which was a staple of the industry. The patents were held Bach comic called best call chemical that held the patent from Florida saint. And when the patent expired nobody could compete with a McCall's they had. They had already have their infrastructures in place and they would sell this product and they were very inexpensive recordings were very inexpensive depend on which. Percentage used. And the new want to came down the pipeline like after that it more than tripled our termite treatment cult cult of the Kimmel golf. So the the the mating programs came out at the right time they hit the market in the right time and it became very carper. There's a lot of failures in the making programs and there's a lot of things that the homeowner does to all this out are controlled out of the pest control company control. And it makes it a challenge forests and make the program work and you know debating programs do work but the if you re debating programs contract it'll say hey. If you get termites in your house we're gonna reserve the right to come in and treat treat that area with chemical. Well my question is if you zoom baiting program from moniker in your pain in 23 times wore an annual inspection should be. What's the house is treated. Do you want to monitor problem or you won't fix problems. Chemical treatments or one town treatment and you look at it most years see if the products for failing we won't. Mean we do a tremendous amount of my argument later. Yeah things and it's just fascinating to see it that he won't get Colin that I can talk all day long about. You know right to Carson wrote booked solid spring it was it it it basically growth story this. You know frown chemicals forefront which was basically over DDT. Oh in this is what's so funny is they found that the DDT really what didn't do what she claimed it did you know Marty we. We face that same challenging in everybody's an industry in every industry in Nick's industry he faces the legal zone that is the expert when little went literally. It's one of the worst ways to handle legal issue I face it was zillow. They things zillow is the expert in real state was the last time zillow walked into your head right you know in the same thing in your business right I mean it's. It's it's it's an ongoing issue. You know we've got people common in that to town you know do one things that I would never do I agree and and it's. And it's flush is got to see where it is very strange very frustrating but you know connect to your point. Earlier when he was talking to Marty's like why wouldn't people puts them on their ground that they'll put on Nadal. Right and I think that had it. That really sums it up Marty how would. And and we wanna make sure we have time for nick with we're talking about builder contracts because that's a big deal to me. But but why. I would think not do salt colleges it Mitt if I get very frustrated. You know. Yesterday so we went and looked at some that another pest control company or real estate transaction. Issue reports that need to be treated in house that need to be treated. We look at a lot of houses other companies claim that need to be treated that didn't need to be treated for the real sick transaction and that frustrates me I'm my sand. We do a vast majorities inspection rules say industry while wooden these people used to us. Yeah and it was over basically about ten bucks inspections. That's crazy you'll pay now or you Palin I concur. Nick builder contracts. We all face him if you want to tune to buy a new home. That we may add to talk about some more this next week but if if if you buy a new home they hand you contract you can't touch it changes modify it the rest of it is what it is exactly. Tom again is that benefits he thinks that is that is benefits for builder contract and there's benefits for your normal residential TT. On the standard offer to purchase. Was made by realtors and attorneys to be as equal as it could to both parties to write a builder conjure. Did it again it's a win win the builder contract is developed by the builder. By their attorneys for their benefit right yes not as not a review is not for you have Tom scanned. But they know that if you got a custom modify home gonna go to yourself they want to being control. Understandably so so they develop those contracts. So their couple big big difference that I see that most people get hung up with and it comes down almost to the date closing. And causes delays because they didn't know the differences. Some of the main differences we'll talk about our money differences yeah when you're down Ian. It's our. On to be put down that earnest money you're due diligence money and you walk during their due diligence period batters when it comes back. Com. On when you put down. Deposits. On a builder contract. That's gone up can you put down a larger deposit it's usually 102030000. Dollars you don't go through with his house. You lose them down. Them you've got to we've got to be where I don't. And I'll get people to come up until day closing I didn't like the way the house turned out. I don't like this I don't like that I want him back out where my ramifications I get my money back. And it's and a resounding capital in. On you've lost it. Said that's one that's a big deal arm excess tax. So yeah. Wind owning normal serve a cause all the normal transaction a seller is going to pay transfer tax there and that's that one dollar per 500 so beginning on and really nice custom built house with a lot of money. That a seller on a normal Contra would pay for. But the builder is not gonna pay for that as a cost to the buyer yeah there's also a lot of ancillary cost you need to they're gonna charge for those surveys they're gonna target you're gonna do inspections are gonna walk and walk through you slight dealer prep in saint Helen. They're database or control this an area they do. And just be aware that I have had a bunch of lenders that are aware that. Excess tax stamps home builder contracts are a buyer's expense right and those 1015100. Dollars can throw your buyer. Out of compliance for alone or at least calls they re disclosure period on closing disclosure. Ceiling you know it's interesting they offer incentives if you use their lender that typically equally amount of a lot of risk up exactly and and that's a good place now better than most those on those Biller contracts those incentives are only if you use their people their lender they're turning their title company. Notre when nick thank you for being with us today and thanks for the contribution that you're headed I think you're going to be back next week mister Wilmington that's awesome Marty. I receive actually yes I can be here that's awesome Sam. You know just talking up a little bit more when next week we're gone we're gonna we're gonna Ding you a little bit more next week as well talk about. Half. Thanks for being with a you always hope you have a fantastic Saturday. God bless and if you need to save for 63663. Your real estate today Paul Jamison. Would talk to you next.
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