It's raining, its pouring and this is SoCal.
Yes, we saw heavy rains, wind and who knows whatelse today, but would you show property to buyers in nasty weather?
My answer... YES!
Bring you rainboots, umbrellas (if you have) and raincoats. A rainy day is the perfect opportunity to show buyers property.
Here are my three reasons:
1. Buyers will be able see exactly where the low levels of the property are and if there are flooding. Also, buyers will be able to see if there is any standing water in or around the property.
2. Leaks in the roof. If there are any, now would be a good time for them to appear.
3. In my experience, serious buyers will head out, rain or shine. Buyers who are seriously considering writing an offer, usually write on a rainy day. Less competition....
So, buyers... if you are thinking of home shopping on a miserable day, think ot the bright side. Its the perfect day to go out.
Other agents, dress down, take a towel and have fun. Who knows. the wet weather, may bring you the deal of the century.
People are asking, "What's a 1031 exchange?"
Well... the rules are not easy, that's why you need to have someone help you start the 1031 exchange account, like a title officer.Â
The theory behind Section 1031 is that when a property owner has reinvested the sale proceeds into another property, the economic gain has not been realized in a way that generates funds to pay any tax. In other words, the taxpayer's investment is still the same, only the form has changed (e.g. vacant land exchanged for apartment building). Therefore, it would be unfair to force the taxpayer to pay tax on a "paper" gain.
The like-kind exchange under Section 1031 is tax-deferred, not tax-free. You have xx amount of time to find "like kind" property. There are no extensions available. If the taxpayer does not meet the time limits, the exchange will fail and the taxpayer will have to pay any taxes arising from the sale of the relinquished property,Â unless the IRS has expressly granted extensions in specified disaster area(s).
If you are looking to do a 1031 exchange, it doesn't affect the buyer or the seller; however, you should disclose that you are doing an exchange on your offer. In addition, if you are interested in opening an exchange, you should connect an real estate attorney, tax advisor or contact a company like Asset Preservation.http://apiexchange.com/
Nancy S BergmanÂ
Realtor - Cal BRE #01893550
Coldwell Banker - Carmel Valley
3810 Valley Centre Dr Ste 906
San Diego, CA 92130
Cell (858) 617-9449
Email - email@example.com
Thought this was a cool tip from CAR - California Association of Realtors.Â
Contingency - "A condition that must be met before a contract is legally binding. For example, home purchasers often include a contingency that specifies that the contract is not binding until the purchaser obtains a satisfactory home inspection report from a qualified home inspector."
Â In California, you have 17 days from the date of your offer to complete all your inspections, complete loan documents, etc. I recently just completed a transaction when the sellers purchased another home on contingency the day after they were "planning" to close on their current home. It was one of the most stressful sales I had in a while. Why, because everything had to go exactlyÂ to plan.
Â The buyer was interested in the home, yet we had no bargaining power because the sellers weren't able to back down because they needed to sell the house in order buy their new house. They calcuated to the date of closing and monies they were receiving one on and closing on the other without any delays in the process. There are always delays somewhere, somehow. Its Murphy's Law!
In addition, I had a lot of trouble getting the buyer's agent to understand that they had to release contingencies. The buyer's agent slipped the clause, "until loan has funded" on the release of contingencies yet not on the original offer. This is a red-flag for any listing agent. For me as the listing agent, this says that the buyers can pull out without any penatly literally under the 11th hour. Doesn't sit well for a seller when they are planning on relocating and realize the buyers still have the chance to back out and they may have to start the whole process again.
Â When I am a buyer's agent, the 17 day is important. It tells me and the sellers once you sign the removal of contingencies that your buyers' are serious about the purchase and are willing and can loose their security deposit if they fail to complete the purchase. By this point, I will usually explain to my buyers that this their final chance out backing out, if they wish. I tell my buyers that the sale is at the half way point. If they don't continue with the sale, they can and may lose their deposit. Â
Make sure your clients understand they are signing a legally binding contract. If you or your agent, doesn't understand the contigencies, you may want to seek counsel or have your agent's broker explain the release of contingencies. This could make or break the deal.Â