In some cities, most cash sales will have to be reported to regulators
Perhaps common knowledge to those that purchase with cash, buyers moving to Florida after the sale of their home in Northern and Western states may encounter these regulatory measures. The changes mean the identities of buyers of almost all-cash purchases in some counties will have to be reported to the Treasury’s Financial Crimes Enforcement Network (FinCEN).
Identifying cash buyers of luxury real estate has helped ferret out illicit activity so well that the U.S. Treasury Department is expanding previous regulations to more U.S. counties and lowering the sales price threshold for reporting.
In January 2016, in an effort to combat money laundering, FinCEN announced title insurance companies would be required to identify the human beings behind any cash-paying “shell companies” that buy high-end residential real estate in New York City and Miami at or above certain million-dollar price points.
Other “geographic targeting orders” (GTOs) put out by the department have expanded the list of affected markets and price points since then and earlier this month, the department issued its most widespread order yet. The order is effective Nov. 17, 2018, through May 15, 2019.
Now, title insurance providers in these areas are required to disclose the people behind any buyer companies for any all-cash transactions of residential real estate at or above $300,000:
- The Florida counties of Miami-Dade, Broward and Palm Beach are a few noted;
Given that the median sales price of a home in many of these counties is well above $300,000, that means virtually all cash purchases of homes in those areas will have to be reported to FinCEN.
Resources Inman News Nov. 27 by Staff Writer Jim Dalrymple.
Despite slowing price growth and slowing sales in many parts of the U.S., the national housing market is still going to become less affordable for many buyers next year, thanks to both rising prices and rising mortgage interest rates, according to a new forecast from Realtor.com. That means a true buyer’s market is not on the horizon.
Though the forecast, out today, offers a few glimmers of hope for buyers, it paints an overall dour picture of the 2019 housing market as both buyers and sellers are forced to adapt to more expensive housing transactions.
Perhaps most significantly, Realtor.com expects mortgage rates to average 5.3 percent in 2019, and to hit 5.5 percent by the end of the year. That increase comes after multiple interest rate hikes in 2018, and will ultimately make buying a home 8 percent more expensive next year, according to the forecast.
The rising cost of buying a home will likely slow price growth, which Realtor.com expects to average 2.2 percent, and lead to a modest increase of 7 percent in home inventory.
Danielle Hale, a Realtor.com economist, suggests overall 2019 will continue the softening trend that began in 2018.
“It’s going to be a tougher year in some respects,” Hale said.
Home price gains slowed to 5.5 percent in September, year-over-year, according to the latest S&P CoreLogic Case-Shiller National Index. Year-over-year growth was down from 5.7 percent last month and the second time in 12 months price gains fell under 6 percent.
Why don’t you see many transactions in sales or purchases? Because they never reach the Multiple Listing Service. Many Commercial, Residential and Social Media networks gather their data from these IDX sources. So don’t always judge a Realtor’s performance by Internet data alone. Do all Comparable Market Analysis provide full and accurate data. Worth calling my team just to find out, you may be pleasantly surprised.
Many of my networks include a large portion of Orange, Lake, Osceola, Polk, St John’s, Duval and Pasco Counties in Florida. I’ve put together transactions by paperless applications and mobile closers. References on request. I might add, that my experience includes deals from all over the United States, South America, Canada, Europe, and the United Kingdom.
Five of my last (7) transactions never made it to the MLS or internet. I had buyers in my pipeline watching for and asking about homes with specific criteria. Showed them properties that may go on the market, viewed them and made handsome offers almost immediatley. This does not always happen and perhaps I’ve been lucky. In any event I have many reviews to substantiate my sales activity.
Once I sold my Ad Agency and Printing Companies, I invested in Real Estate long before ever thinking about becoming a Realtor.
From 1992 through 2008 my family and I hosted foreign Exchange Students through local soccer organizations that hosted soccer camps for students in Swedan, Finland, and other european countries. I was a member of Lions International and hosted young men through the Montgomery Youth program and one year actually hosted 7 boys for 10 days. Challenging and rewarding. So my network of foreign nationals is extensive.
Interested in Selling? Call me and my team and I will provide an extrodinary listing presentation unmatched by competitors. Our marketing model is extensive, elaborate and extremley effective.
After a lot of thought, and analysis, our team has decided to move to RE/MAX UNLIMITED in Nocatee. I can again drive my golf cart to work!
I had 38 transactions in 2016 thru the first few months of 2017 in a Golf Community with a builder. All these transactions were resales. I did guide some buyers to the builder, people need to remember going to a builder on your own is like walking in naked. You have no one to arm you so you are never caught off guard. When you truly love what you do. Life becomes the joy we all ultimately strive for.