Blog about buying from International Seller

[Woohoobb]

Originally Posted by Noodlez

Can I be honest and admit I don't like the idea of your blog! On 'the other' board I've seen a lot of posts about how much less you should offer an international seller! I don't think it should be disclosed. Finding a notary may take a day or two longer in the UK, but there is no obligation for anyone to reply the same day.

As far as I'm aware most brokers won't say "this seller is a bit disorganised so please allow an extra few days", "this seller is often travelling and probably will forget to return their documents for a few weeks", etc. Why is it important to know that the seller is international? I'm concerned your blog may only add to the current feeling that there is an extra issue with international sellers. Given the number of weeks that resale takes we shouldn't be making an issue of the extra couple of days that it may take to find a notary. When we were purchasing our US seller was slower than us at every step! There was definitely no instant response because they weren't international.

When/if I come to selling I think I would like my broker to keep my private details, such as my location, private.

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I agree wholeheartedly! We have bought and sold and every time we were ahead of the American purchaser/seller. I think It really comes down to how organised an individual is! One of our contracts (coveted 50 point) we nearly pulled the sale as the buyer was glacially slow and downright rude when we would chase. It wasn’t down to wanting the money but we were sitting on paperwork and I hate having things lying around.
I would also expect a broker to hold my location private in the future. 👍

[TinkTatoo]

I sold a couple of contracts and it was very quick and straightforward, there was a delay in one of my contracts but that was down to the buyer in the US and nothing to do with the fact I was an international seller. My paperwork was back in the US for weeks before they completed theirs. Once I'd sold I did have to apply for an ITN number and claim the tax back but that process didn't affect the sale as the tax was withheld once the buyers paid.

Like Noodlez, I have seen posts on other forums where there seems to be a lot of negativity about international sellers and a lot of assumptions that the whole process is fraught with hassle and delays. A common misconception is that all international sellers have to go to a US embassy to get their documents notarized which is complete rubbish, but none the less crops up frequently when international sellers are mentioned. I think that sales based in Europe are probably a lot more straight forward than some other countries so maybe some of the negativity comes from non European sales.

The bottom line is that there are good and bad buyers / sellers, no matter where you're based and you're just as likely to experience a delay buying domestically as you are internationally.

[Midges17]

I am currently trying to sell my contract, without much success & I do wonder if having international seller in block capitals would put people off, I did have an offer a few months ago, which unfortunately fell through but I had all my paperwork done & back several days before the American buyer had completed there’s.

[JasonErpelding]

Originally Posted by Noodlez

Can I be honest and admit I don't like the idea of your blog! On 'the other' board I've seen a lot of posts about how much less you should offer an international seller! I don't think it should be disclosed. Finding a notary may take a day or two longer in the UK, but there is no obligation for anyone to reply the same day.

As far as I'm aware most brokers won't say "this seller is a bit disorganised so please allow an extra few days", "this seller is often travelling and probably will forget to return their documents for a few weeks", etc. Why is it important to know that the seller is international? I'm concerned your blog may only add to the current feeling that there is an extra issue with international sellers. Given the number of weeks that resale takes we shouldn't be making an issue of the extra couple of days that it may take to find a notary. When we were purchasing our US seller was slower than us at every step! There was definitely no instant response because they weren't international.

When/if I come to selling I think I would like my broker to keep my private details, such as my location, private.

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I appreciate the feedback. I will have to look for the discussion boards on this subject as I haven’t seen this discussion. I do have many foreign sellers tell me that they will never list their property with The Timeshare Store, Inc.® aka the DVC Store because they have one of their DVC Shows on youtube discussing how to make low offers to Foreign Sellers and if they accept Disney doesn’t buy them back. I find foreign sellers to be basically the same as any other seller. A foreign seller who owns 50 points at Boulder Ridge is going to list the property and get the same price as a domestic seller.

With all this feedback I am seriously thinking to not put “International Seller” on the listings but I need to ask one question. If you are a foreign buyer interested in a property and after you inquire on the listing I disclose that you have to get a ITIN number are you going to be disappointed it wasn’t disclosed that the seller was foreign?

I have actually had multiple international buyers buy from an international seller in the last 60 days. Getting the ITIN hasn’t been an issue for them but I am disclosing this ASAP.

This is what I send an international buyer when they are inquiring on a property from an international seller.

Before we go any further with this transaction I need to make you aware that you will need to get an ITIN number since you are a foreign buyer buying from a foreign seller. The good news is that if you ever need to sell it then you will already have an ITIN number.

It is a very simply process and Nancy Carpenter can help. The client emails Nancy Carpenter a copy of their passport (each person listed on the deed must obtain an ITIN). You set up a day and time convenient for them for a brief interview via Zoom (Nancy provides the link & password). Once the interview is over, she emails the application to you to sign and return the original back to her. Right now, she is requesting they be sent via courier. Once the file is ready to close, she submits the applications to the IRS for processing. Her fee for buyer’s is $50.00 per application.

Nancy Carpenter, AFSP
Foreign Investors Tax Services LLC
FIRPTA Specialist
ITIN Certified Acceptance Agent (CAA)
Notary Public
Tax Returns for Foreign Investors / Rental Properties & Tax Withholding Refunds

P.O. Box 722
Intercession City, FL 33848
Phone / 407-301-0638
Fax / 407-308-0648
Email nancy@fitaxes.com
Web address: fitaxes.com

Interview option:
Zoom / a link will be provided to you

Jason Erpelding
Lic. Real Estate Broker
Buy and Sell DVC, Inc.®

[YorkshireT]

I think foreign buyers who are buying from a foreign seller wouldn’t have an issue in most cases- the bit about then having the number so they’ll have it if they come to sell is good.

[JasonErpelding]

Originally Posted by YorkshireT

I think foreign buyers who are buying from a foreign seller wouldn’t have an issue in most cases- the bit about then having the number so they’ll have it if they come to sell is good.

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Thank you!

Jason Erpelding
Lic. Real Estate Broker
Buy and Sell DVC, Inc.®

[Bella1]

We were obviously foreign buyers and our sellers were in New York, every step of the way they were days behind us and were the ones holding up the sale, although you need a notary it is easy enough to find one ahead of time (had to use one for a document to say I could take my friends kid on a cruise) and be ready when your sale happens. I think adding fuel to the fire of people thinking a Brit might be harder to deal with isn't needed!

[Kwkiwi]

Hi I have a couple of SSR contracts. I’m a New Zealand resident. I may sell them in the next year or so. I just have a question - I understand I have to get an Itin number to sell. I also have a US broking account to buy shares. I signed a W8-Ben form as Nz has a tax treaty with the US.

How does getting an Itin number affect my set up? Do I need to submit a US tax return every year because I got an ITIN? What income is included on the Itin. Also how much does it cost to get an Itin? Thanks. Sorry if these questions have a,ready been answered elsewhere.

[Noodlez]

Originally Posted by Kwkiwi

Hi I have a couple of SSR contracts. I’m a New Zealand resident. I may sell them in the next year or so. I just have a question - I understand I have to get an Itin number to sell. I also have a US broking account to buy shares. I signed a W8-Ben form as Nz has a tax treaty with the US.

How does getting an Itin number affect my set up? Do I need to submit a US tax return every year because I got an ITIN? What income is included on the Itin. Also how much does it cost to get an Itin? Thanks. Sorry if these questions have a,ready been answered elsewhere.

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Hi. You might want to start this as a new thread as this one is a few years old and I don't think Jason comes on these boards any more. I am currently applying for an ITIN as I bought from an international seller. I shouldn't need to file a tax return or do anything else.

The broker I bought through arranged mine through Nancy Carpenter who I believe normally charges $100 to apply (although they paid for mine for me). I had to pay to have my passport copy notarised. There seem to be a lot of places that will assist with the process, but I haven't compared the prices.

I have never sold so I don't know much about FIRPTA, but as far as I'm aware your tax is withheld from the sale and you need the ITIN to apply for it to be refunded, which is currently taking many months. I haven't heard of people having to disclose any other income.

[Kwkiwi]

thanks Noodlez. Very helpful.
I might contact Nancy Carpenter to see what she advises.