BoiseRealEstate

June 29 2023

Difference between Residential & Commercial Real Estate Agents

Tim Perry Uncategorized Blog Post, Boise, BoiseRealEstate, Home staging, Idaho, Real estate, Real estate agent, Skyline Realty

A residential real estate agent and a commercial real estate agent are both professionals in the real estate industry, but they specialize in different types of properties and clientele. Here are the key differences between the two:

Property Types: Residential real estate agents primarily deal with properties that are used for residential purposes, such as houses, apartments, townhouses, and condominiums. On the other hand, commercial real estate agents focus on properties that are used for commercial purposes, such as office buildings, retail spaces, industrial warehouses, and land for development.
Clients: Residential real estate agents work with individual buyers and sellers who are looking to purchase or sell residential properties for personal use. They may assist clients in finding their dream homes, negotiating deals, and navigating the home-buying process. Commercial real estate agents, on the other hand, work with businesses and investors who are interested in commercial properties for investment, leasing, or development purposes. Their clients may include corporations, entrepreneurs, investors, developers, and business owners.
Market Knowledge: Given the different property types, residential and commercial real estate agents have distinct knowledge and expertise about their respective markets. Residential agents have a deep understanding of residential neighborhoods, school districts, local amenities, and housing trends. They can provide insights into factors that affect residential property values and help clients find homes that meet their specific needs. Commercial agents, on the other hand, focus on commercial property market dynamics, such as vacancy rates, rental rates, zoning regulations, and economic factors that impact commercial real estate investments. They analyze market data and trends to advise clients on investment opportunities, leasing strategies, and property development potential.
Sales and Leasing Process: The process of buying or selling residential properties differs from that of commercial properties. Residential real estate agents assist clients in preparing and staging homes for sale, marketing properties, organizing open houses, and negotiating offers. They guide buyers through property viewings, offer submissions, inspections, and closing procedures. Commercial real estate agents handle complex transactions involving commercial properties, including sales, leasing, and development deals. They often work with legal and financial professionals to analyze property value, negotiate leases, draft contracts, and navigate zoning and permitting processes.
Income Structure: The income structure for residential and commercial real estate agents can vary. Residential agents usually earn a commission based on the final sale price of a property, typically paid by the seller. Commercial agents may earn commissions on lease transactions, which are often a percentage of the total lease value over the lease term. They may also earn fees or commissions from property sales and development projects.

It’s worth noting that while some real estate professionals specialize exclusively in residential or commercial properties, others may have expertise in both areas and work as dual agents, serving clients in both sectors.

May 1 2023

What Is A 1031 Exchange?

Tim Perry Uncategorized 1031Exchange, AIRBNB, Boise, BoiseHomes, BoiseRealEstate, Idaho, Idahohomes, Investing, RealEstateInvesting, REInvesting, Rentalinvesting, Rentals

What Is A 1031 Exchange?

What is a 1031 Exchange?

A 1031 exchange is a tax-deferred transaction in which an investor can sell an investment property and use the proceeds to purchase a like-kind property without having to pay capital gains taxes on the sale. The term “1031” refers to the section of the U.S. Internal Revenue Code that governs these types of exchanges.
To qualify for a 1031 exchange, both the property being sold and the property being purchased must be held for investment or business purposes. Additionally, the investor must adhere to a strict set of rules and timeframes, including identifying replacement properties within 45 days of the sale and completing the exchange within 180 days.
While a 1031 exchange can provide significant tax benefits, it is a complex process that requires careful planning and execution. Investors should consult with tax and legal professionals before engaging in a 1031 exchange.
What Qualifies as a 1031 Exchange?
To qualify for a 1031 exchange, investors must follow a set of strict rules and timeframes. Some of the key rules and timeframes include:
1. Like-kind property: The property being sold and the property being purchased must be considered “like-kind.” This means that the properties must be of the same nature or character, even if they differ in quality or grade.
2. Identification period: The investor must identify potential replacement properties within 45 calendar days of the sale of the original property. This period is known as the identification period.
3. Exchange period: The investor must complete the exchange and acquire the replacement property within 180 calendar days of the sale of the original property. This period is known as the exchange period.
4. Qualified intermediary: The investor must use a qualified intermediary to facilitate the exchange. The intermediary holds the proceeds from the sale of the original property and uses them to purchase the replacement property.
5. Reinvestment requirement: The investor must reinvest all of the proceeds from the sale of the original property into the replacement property. If the investor receives any cash or other non-like-kind property in the exchange, that amount will be subject to capital gains taxes.
These rules and timeframes are strict and inflexible, and failure to comply with them could result in the disqualification of the 1031 exchange and the assessment of capital gains taxes. Therefore, it is important for investors to work closely with qualified professionals to ensure that they adhere to all of the requirements of a 1031 exchange.
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April 24 2023

Reasons Not to Sell For Sale By Owner

Tim Perry Uncategorized Boise, BoiseHomes, BoiseRealEstate, Idaho

The number one reason a home does not sell is because it is overpriced. Hiring a expert real estate agent, who has your best interest in mind will help you price it right, while there is the most amount of activity within the first few weeks is important to get top dollar. Over-pricing may make it difficult to get agents excited to show, hard to get good buyers to view the property, hard to get people to make an offer, and difficult to get financing.

Selling a home can be a daunting task, but it’s important to consider all options before making a decision. While selling a home by owner may seem like a good idea to save money on real estate agent fees, there are several reasons why it may not be the best choice.

As a homeowner, you may not have the experience or knowledge of the real estate market that a professional agent does. This can lead to mistakes in pricing, marketing, and negotiating, which can ultimately cost you time and money. It is also important to interview and research real estate agents before you list your home so you won’t waste time or money.

Selling a home by owner may limit your potential buyer pool. Real estate agents have access to a wider network of buyers, including those who may be relocating from out of state or even internationally. By not working with an agent, you may miss out on potential buyers who are not actively searching for homes on their own.

Without the guidance of a professional, you may be vulnerable to legal issues and potential scams. Real estate agents are trained to navigate the legal aspects of selling a home and can help protect you from fraudulent activity.

It’s important to consider the potential risks and drawbacks. Working with a professional real estate agent can save you time, money, and stress in the long run.