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Home Selling in 97202 : Real Estate Advice

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  • Home Buying6
  • Home Selling5
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Activity 5
Tue Nov 1, 2011
Rich Golze answered:
Ok you have a couple issues here:

Capital Gains Tax Exposure and Recapture Exposure.

Provided that you have owned the duplex for more than two years and have not lived in either side of it, you will have exposure from two fronts.

1. Basis - this is the price of the property minus the depreciation plus any improvements to the property - this will be recaptured at 25% capital gains tax
2. Capital Gains - this is the amount of difference between purchase price plus improvements and the sales price to your daughter. This will be taxed at a long term capital gain of 15%

Since you are selling on a contract, there will be a ratio of Interest, and debt payoff - from a tax perspective, interest from the contract will be income to you, and the loan paydown will have to be calculated as ratio of how much is capital gain and how much is depreciation recapture.

I would definately seek some tax advice from a CPA or enrolled agent to figure this out before you structure your deal. Some CPA's would tell you that you have to pay all your tax upfront and others will treat this as an installment sale - which is where you would pay your tax as you receive your money.

You may be better off depending on what tax bracket you are in to sell it to them with a regular loan, carrying back a 2nd if necessary and trading into a Tenant In Common transaction if you are wanting the income.

There are many different paths you can go down with this. I would recommend John Brahms CPA -

Tell him Rich the mortgage guy sent you! :)
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Wed Sep 30, 2009
Chris Aldridge answered:

You’ve got some great info already from some top agents and here’s my $ .02… I’ve seen agents run an open house every week and go two or three months without a single offer; yet, I’m able to list a home and have an accepted offer and open escrow within several weeks without even thinking of an open house. So are open houses really effective? Every survey I’ve seen in the last ten plus years shows that between 1-2% of home sales are generated off an open house. (Excluding new construction as was noted below) As you’ve read, open houses are just a way for agents (usually not even the listing agent – maybe a newbie?) to find buyers AND to keep the seller placated.

For the most part, open houses are an antiquated throwback to the 60’s, 70’s, and 80’s when there was no internet; no computer database of all available homes, and the MLS’s were not as organized – when I started in the business, listings were in a phone-book sized directory printed every two weeks. (some of you on here remember those days…)
There is also zero control over who shows up at the open house. It could very well be an honest buyer looking on their own; it could be the noisy neighbor, who just wants a peek; it could be the unqualified looky-loo who couldn’t afford to finance a candy bar, or it could be burglar casing the house, or even worse – sadly, over my 20+ years as an agent, I’ve heard of more than one female agent who was assaulted at an open house. Safety is a factor to consider.

Today’s buyer usually starts their home search on the internet – in most cities, 78% to 98% of all buyers start online. If your house is listed in the MLS, it is most likely fed to hundreds of search engines – usually in anywhere from real time to 24 hours. It’s being advertised 24/7.

Yes, occasionally, a home will sell as a result of an open house. What will sell it? In this market, it’s PRICE. Period…

Good luck on selling your house~
Chris Aldridge
RE/MAX Equity Group
Lake Oswego, OR
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Fri Jun 19, 2009
jewel Robinson answered:
The impact of the disclosure of probate could have minimum affect on the marketability of the home. A buyer might think that escrow take more than the average 45 days (in today's market). A buyer may not have the ability to wait it out due to factors such as a lease coming to it's end or a move for a job (and not wanting to move twice).
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Fri Jun 5, 2009
Janeese Jackson answered:
When your agent listed your home they should have presented a marketing plan for the sale of your property. With over 90% of buyers starting their search for their next home or investment on the web, I believe that an extensive web presence including photographs and/or video tours are paramount! However, there are three factors to selling a home: location, condition and pricing. You can also influence two of those factors. So, getting the home "market ready" by staging and sprucing and effective pricing are essential. Remember you are hiring this agent to represent you, not the buyer. So, I feel the listing agent's job is to help you get the property in the best condition possible, help you establish a competitive price and get the property exposed to other Realtors and the buying public.
Janeese Jackson, Principal Broker
Real Estate Resource
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Fri Jun 5, 2009
Tom Inglesby answered:
Check the comps and go out and preview what has sold in your area. Compare not with what is for sale but look at homes that have sold with in 1/2 mile and in the same school district in past 4 monts this is what an appraiser does. Look at inventory numbers. 6 Months is average selling time in many areas but in over all Portland your inventory of homes to sell is 11 months. Your area and price dictate how fast you will sell. Close in to Portland is active under $300,000 is very active as we always say Location is the key.

Tom Inglesby
Broker, RE/MAX Equity Group
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