New neighbor interested in buying our home too
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Re: New neighbor interested in buying our home too
Thanks for the input!
Re: New neighbor interested in buying our home too
If you’ve lived there for 2 years, you get a capital gains exemption of $500k which you are well under.hameshatumkochaha wrote: ↑Sun Jan 24, 2021 10:29 pm Minor update:
I ran into the realtor (neighbor's mother), who offered $500k and no transaction cost (which at 6% is about $30k). Zillow is at $493k currently; so I said, take your time and make an offer that will make us move. Without saying it, I inferred that $500k is not much different than the current market price. If she is indeed interested, she will make a serious offer. If so, I am good to move.
2 quick questions:
1. Curious, if I bought the house at $300k, sell at $500k and have a transaction cost of $30k, isn't my profit $170k once applied to the new house tax-free?
2. Is there a way to pay $30k transaction cost separately and use it for some deduction while rolling-over $200k toward the new house so it becomes tax-free? I guess the answer is no but thought of asking.
I really did not buy this house for "transactions" so did not research this.
Thanks again for your inputs guys!
As promised earlier, I will keep you guys posted.
That said, forget about your neighbor and ask yourself do you want to sell your home and move? If you want to sell, find your own realtor and put the place on the market and let your neighbor bid on it along with everyone else. No realtor is ever going to overpay for a home and they may be intending to flip it.
I wouldn’t go with Zillow to determine the value. Get your own realtor who can tell you what the property is worth. Taking her offer because it’s 0 commission is penny wise, pound foolish.
Re: New neighbor interested in buying our home too
This. In fact ask three realtors and average it. Better yet, pay for an appraisal.mchampse wrote: ↑Sat Jul 03, 2021 6:39 amIf you’ve lived there for 2 years, you get a capital gains exemption of $500k which you are well under.hameshatumkochaha wrote: ↑Sun Jan 24, 2021 10:29 pm Minor update:
I ran into the realtor (neighbor's mother), who offered $500k and no transaction cost (which at 6% is about $30k). Zillow is at $493k currently; so I said, take your time and make an offer that will make us move. Without saying it, I inferred that $500k is not much different than the current market price. If she is indeed interested, she will make a serious offer. If so, I am good to move.
2 quick questions:
1. Curious, if I bought the house at $300k, sell at $500k and have a transaction cost of $30k, isn't my profit $170k once applied to the new house tax-free?
2. Is there a way to pay $30k transaction cost separately and use it for some deduction while rolling-over $200k toward the new house so it becomes tax-free? I guess the answer is no but thought of asking.
I really did not buy this house for "transactions" so did not research this.
Thanks again for your inputs guys!
As promised earlier, I will keep you guys posted.
That said, forget about your neighbor and ask yourself do you want to sell your home and move? If you want to sell, find your own realtor and put the place on the market and let your neighbor bid on it along with everyone else. No realtor is ever going to overpay for a home and they may be intending to flip it.
I wouldn’t go with Zillow to determine the value. Get your own realtor who can tell you what the property is worth. Taking her offer because it’s 0 commission is penny wise, pound foolish.
And I would add that you could write a deal with your realtor that cuts the buyers realtors commission if that person buys it.
Re: New neighbor interested in buying our home too
The market value of your home is ultimately how much someone will pay for it and no one knows that for certain until you put it on the market. A realtor should be able to give you a ballpark of how much someone might be willing to pay for your home.JediMisty wrote: ↑Sat Jul 03, 2021 5:11 pmThis. In fact ask three realtors and average it. Better yet, pay for an appraisal.mchampse wrote: ↑Sat Jul 03, 2021 6:39 amIf you’ve lived there for 2 years, you get a capital gains exemption of $500k which you are well under.hameshatumkochaha wrote: ↑Sun Jan 24, 2021 10:29 pm Minor update:
I ran into the realtor (neighbor's mother), who offered $500k and no transaction cost (which at 6% is about $30k). Zillow is at $493k currently; so I said, take your time and make an offer that will make us move. Without saying it, I inferred that $500k is not much different than the current market price. If she is indeed interested, she will make a serious offer. If so, I am good to move.
2 quick questions:
1. Curious, if I bought the house at $300k, sell at $500k and have a transaction cost of $30k, isn't my profit $170k once applied to the new house tax-free?
2. Is there a way to pay $30k transaction cost separately and use it for some deduction while rolling-over $200k toward the new house so it becomes tax-free? I guess the answer is no but thought of asking.
I really did not buy this house for "transactions" so did not research this.
Thanks again for your inputs guys!
As promised earlier, I will keep you guys posted.
That said, forget about your neighbor and ask yourself do you want to sell your home and move? If you want to sell, find your own realtor and put the place on the market and let your neighbor bid on it along with everyone else. No realtor is ever going to overpay for a home and they may be intending to flip it.
I wouldn’t go with Zillow to determine the value. Get your own realtor who can tell you what the property is worth. Taking her offer because it’s 0 commission is penny wise, pound foolish.
And I would add that you could write a deal with your realtor that cuts the buyers realtors commission if that person buys it.
Appraisal’s are good for legal and tax situations but I wouldn’t use them as a definitive guide for what your home is worth. Appraisers take into account objective criteria like size, location, # of bedrooms/bathrooms, etc. They can’t consider more subjective criteria like the amount of light, layout, staging, etc.
Plus appraisers have a large latitude of what value they can justify. An appraiser can appraise higher or lower depending on what you tell them you’d prefer. There was a case of a black homeowner who had their home appraise $500k higher when they had some white friends pretend they were the homeowners.
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Re: New neighbor interested in buying our home too
The neighbor's problem is not the OP's problem. "Sell me your house because I want it" isn't exactly the most neighborly way to introduce oneself.
In OP's shoes, I'd need the sale price to be the cost to get me into the place I want, plus a very large buffer for moving costs and the inconvenience of having to pack. A 3000sf home isn't small. It's going to take me weeks to pack and my time isn't free. The only way I'm moving before I want to is someone making an "I can't believe someone would pay that much for this house" offer.
I am not a financial professional or guru. I'm a schmuck who got lucky 10 times. Such is the life of the trader.
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Re: New neighbor interested in buying our home too
It's been 20 months. The neighbor is not buying their house.
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Re: New neighbor interested in buying our home too
Our house has nearly tripled in value over 20 years. If someone told me they'd make an offer I couldn't refuse, I'd insist they pay well above market value and purchase the property "as is", with no repairs stipulated in the contract. That would really indicate just how serious they are. We have bidding wars going on daily where the asking price is just a starting point, and homes are selling for tens of thousands more after 20+ bids are submitted.
You're in the driver's seat, enjoy the ride.
You're in the driver's seat, enjoy the ride.
"Dream, Dare, Do."
Re: New neighbor interested in buying our home too
I think it’s 8 months?michaeljc70 wrote: ↑Wed Aug 04, 2021 8:15 pm It's been 20 months. The neighbor is not buying their house.
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Re: New neighbor interested in buying our home too
Yes. Bad counting. I still don't think they're buying the house though.....SQRT wrote: ↑Thu Aug 05, 2021 8:17 amI think it’s 8 months?michaeljc70 wrote: ↑Wed Aug 04, 2021 8:15 pm It's been 20 months. The neighbor is not buying their house.
Re: New neighbor interested in buying our home too
Agree. “An offer you can’t refuse”. Boy I’ve heard that one a lot.michaeljc70 wrote: ↑Thu Aug 05, 2021 8:28 amYes. Bad counting. I still don't think they're buying the house though.....SQRT wrote: ↑Thu Aug 05, 2021 8:17 amI think it’s 8 months?michaeljc70 wrote: ↑Wed Aug 04, 2021 8:15 pm It's been 20 months. The neighbor is not buying their house.
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Re: New neighbor interested in buying our home too
Exactly. Whenever I hear someone tell me someone is "interested" in their xyz I think call me when when you have the money in your hand. Most people just don't run around overpaying for things that weren't for sale. Especially a professional in the field of what she is buying.SQRT wrote: ↑Thu Aug 05, 2021 8:38 amAgree. “An offer you can’t refuse”. Boy I’ve heard that one a lot.michaeljc70 wrote: ↑Thu Aug 05, 2021 8:28 amYes. Bad counting. I still don't think they're buying the house though.....SQRT wrote: ↑Thu Aug 05, 2021 8:17 amI think it’s 8 months?michaeljc70 wrote: ↑Wed Aug 04, 2021 8:15 pm It's been 20 months. The neighbor is not buying their house.
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Re: New neighbor interested in buying our home too
Thanks RM! This is great. What document(s) / articles should I refer to read more about this? This is a very interesting news (even if I am not much into real-estate)!
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Re: New neighbor interested in buying our home too
Never, ever, believe what a real estate broker says without considering their interest. My in laws sold to "a family that really wants to live here" - made friends with my MIL w their grandmother** etc. They had sold it on within 2 years. They were property speculators, in essence.hameshatumkochaha wrote: ↑Sat Dec 12, 2020 1:52 am Hi,
Interesting situation...
we got new neighbor whose mother is a real estate broker and wants to be very close to the neighbor’s family so has shown interest in buying our home if we were selling.
Once her daughter said, if we had shown interest in selling then she could have made an offer we could not have refused... our zillow is $470k currently.
I don’t want to sell and move but my wife is a little more open to move out of the current 3k sq ft house (built new in 2013).
I thought if I really get an offer I cannot refuse then I could kill two birds in one stone (some of my appreciated capital will roll tax free and my wife might get a house she will like).
Questions:
1. Would you pursue this and if yes, how? by contacting buyer to give a single best offer?
2. What offer would you expect if you were me?
3. I feel that I am overthinking this and should not expect a much sweet offer as eventually it is a business transaction and the buyer is a pro in the field... what do you think?
4. My other mind says, ask the buyer to make an offer anyway; what is the harm?
What would you do?
Thanks
If they want your home, it may be because they want to do a teardown and build a super home? They may know a developer?
US home market is super hot right now, I believe. Shortage of new supply as demand picks up post Covid. Historic prices are therefore a poor guide to current market value.
Beware you could sell, and find that the money gives you nothing to buy.
** my late MIL made a blanket for the grandmother, who spoke no English.
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Re: New neighbor interested in buying our home too
If it is a hot market where you are, do you have a plan for where you will live if the house is sold?
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Re: New neighbor interested in buying our home too
Yes, the neighbor is not buying the house.
I think what is happening is, I modify the thread with a question / an update and it goes to the top and get more responses.
Yes, for now, this topic is not ongoing. I was just asking what can i read to understand RM's comment about no-tax on $500k profits...
Thanks again to all for the inputs...
I think what is happening is, I modify the thread with a question / an update and it goes to the top and get more responses.
Yes, for now, this topic is not ongoing. I was just asking what can i read to understand RM's comment about no-tax on $500k profits...
Thanks again to all for the inputs...
michaeljc70 wrote: ↑Thu Aug 05, 2021 8:28 amYes. Bad counting. I still don't think they're buying the house though.....SQRT wrote: ↑Thu Aug 05, 2021 8:17 amI think it’s 8 months?michaeljc70 wrote: ↑Wed Aug 04, 2021 8:15 pm It's been 20 months. The neighbor is not buying their house.
Re: New neighbor interested in buying our home too
This thread is over.