Don Fabrizio-Garcia

Michael -

Actually federal capital gains tax rates are currently 15%, but that may be increasing. Speak with your tax advisor for specifics.
There are also state capital gains taxes, which I believe are 7% in Connecticut, but I'm not positive of this rate.

Is the vacation home used as an investment property? Is it rented out, or is it simply a vacation home for you and your sister? If it meets the guidelines for an investment property, then you may be eligible for a Starker 1031 Exchange, where you would sell your share of the home to your sister, and then immediately use those funds to purchase another investment property of greater or equal value. This would postpone the capital gains taxes until you sell the new property. There are specific criteria and timeframes involved in a 1031 Exchange, and you would need to hire an Exchange company to handle the funds - all funds must go into the new property and not to you.

Another option to consider would be to move into the home for two years, use it as your primary residence, and then you can sell it while taking the $250,000 capital gains exclusion . Again, you need to speak with your tax advisor regarding your specific situation to determine what you qualify for and what options apply to you. - Sun Nov 16 2008, 15:13

Maria - You have several issues to consider here.

First off, be careful with some of the answers from out of state agents, as they do not necessarily apply to Connecticut.

Speak with your agent to determine the home's current value based on recent sales of similar homes. Then, resubmit your offer based on the home's value and your ability to afford the home - no matter how much you may love the home, do not offer more than you can comfortably afford.

As for closing costs, speak with your lender, who will provide you with a good faith estimate that will detail an estimate of all closing costs.

As for having the seller pay for closing costs, be sure to first check with your lender to ensure this is allowed under your loan program. If you want to have the seller pay your closing costs, you will have to submit an offer that you believe will be higher than the others, based on what the sellers will net AFTER they pay your closing costs.

Good luck! - Fri Nov 14 2008, 08:14

Maria - It is still common that when there are multiple offers, the sellers will them request everyone resubmit with their "highest and best" offer. I still see this a lot on foreclosure homes and entry level homes that are priced right and in great condition.

If you don't want to offer more, then leave your current offer as it is and hope for the best. If you really want the house, then make a reasonable highest and best offer. - Thu Nov 13 2008, 19:49

Claud - Speak with your agent and your attorney. It sounds as though there is no definite closing date set yet. This does happen occasionally lately, typically if the buyer of your current home still does not have their clear to close from the lender.

Your attorney and agent should be able to guide you through this. Talk to them. - Thu Nov 13 2008, 19:45

Actually, this varies and, of course, everything is negotiable.

Typically, the buyer pays for: inspections, title insurance, appraisal, lender fees.
Typically, the sellers pays for: any negotiated repairs, conveyance taxes.
Buyer and seller each pay for their own attorneys.

Seller usually pays for the real estate agent commissions, but this is also partly determined by the Buyer Broker Agreement the buyer signs with their agent. - Sun Nov 9 2008, 13:08