Information for Foreign Buyers
If you are a foreign buyer looking to make a real estate purchase in Naples, then you will have plenty of company. Nearly 20% of home purchases in second home communities are foreign owners, of which Canadians make up the majority share.
It makes no difference whether you are from the United Kingdom, New York or Naples FL, the process for purchasing a home is the same. There is no additional fees or expenses involved with the home purchase transaction. The steps described in Naples Buying Process, will provide you with an understanding of the home buying process.
Working with a real estate broker in Naples is sometimes different than in other countries. Real estate brokers cooperate through the local Multiple Listing Services (MLS). With the MLS they share all their listings with each other. A real estate broker in Naples will have access to their listings, plus all the listings of the other brokers in the Naples area.
Upon a sale, the seller pays the real estate commission to their broker, who then shares it with the selling broker (buyer’s broker). The buyer does not pay any commission related to the sale. Through this cooperation, the seller get the greatest amount of exposure, to the greatest number of potential buyers.
Foreign buyers can take advantage of a wide range of services provided through me to help locate the right property, submit a purchase agreement and negotiate with the seller. This is all at no cost to them.
Other Information for Foreign Buyers
- Once a property is purchased, it would be more convenient to open a US bank account to make bill paying easy.
- Mortgage Financing – Foreign Buyers will either have difficulty getting a mortgage, or pay a high premium for one. The best course is to work with a bank in your own country that has US subsidiaries that lends.
- Rental Income – If the property purchased is rented, then the rules are the same as for US citizens. (Note some countries might have tax treaties, so it is always best to check with a tax advisor).
- Selling – FIRPTA (Foreign Investment in Real Property Tax Act of 1980) requires that 10% of the selling price of a foreign own property, be withheld to cover taxes on any potential gain (Selling price, less original purchase price). The foreign owner would then have to prepare a tax filing to get a refund, for the excess amount held.