How to identify 1031 exchange investors in Seattle
Clients may be trying to
Diversify investment properties: With Seattle seeing higher appreciation, clients may wish to sell one property here, and buy several in different growing areas in the U.S.
Consolidate investment properties: This can be done by exchanging two duplexes for a retail strip centre.
Generate more cash flow/income: For example, a vacant parcel of land that offers no cash flow or depreciation benefits can now be exchanged for a commercial building that does.
Continue to build wealth by leveraging cash: A 1031 Tax-Deferred Exchange can provide an investor leverage to acquire a more lucrative investment property. By using the money they would have paid as taxes to the IRS, they can increase their down payment and obtain a more expensive replacement property.
Freedom from complicated management: This is the most typical reason for investors to do a 1031 exchange. An investor can significantly increase profits and decrease time and effort in management by exchanging out of a high maintenance rental property into an apartment building, TIC, DST or an NNN leased investment.
Timing is still everything
The first thing to remember is to get a Qualified Intermediary involved in the process before you close on selling a property. Ideally, even sooner. The only challenge in doing a 1031 exchange in Seattle is the low amount of inventory available. This circumstance paired with a 45-day deadline, in which a specific replacement property must be identified.
Additionally, there’s another deadline: the exchange must be done within 180 days of transferring the relinquished property.
As the Seattle housing market continues to grow in 2019, buyers now have a better prospect of doing a 1031 Exchange in Seattle for investment. With prices plummeting from the market’s peak point and inventory of properties on the market going up, real estate investors are advised to make a move on this city.
Prices Are Dropping
The rapid rise in prices of Seattle houses for sale just two to three years ago left the city a hot seller’s market. However, according to recent statistics, the median home value in the Seattle housing market has dropped 4.5 percent since last year and is currently $717,800. Market values are expected to drop another 3.8 percent for the coming year, and with this drop in value comes a drop in property prices.