Advice from smart people

[one_muggle]

temeculaguy:

It’s tough to price real estate based on the list price others are not selling at.

LOL. That has to be the most concise view of the current RE market I’ve heard.

jennyo, just please please don’t do this (from a real ziprealty price history):

Price Reduced: 06/28/07 — $728,000 to $700,000
Price Reduced: 07/09/07 — $700,000 to $695,000
Price Reduced: 07/17/07 — $695,000 to $689,000
Price Reduced: 08/01/07 — $689,000 to $669,000
Price Reduced: 08/02/07 — $669,000 to $650,000

The $5k drop on a $700k house just kills me.
FWIW: Even at the peak, this house (LA foothills)should never have been above $600k, if that.
-one muggle

[temeculaguy]

Thanks muggle, sometimes I post and laugh at my jokes thinking I am the only one who gets them. I should have elaborated about the pricing that should not be based on what others are listing at, “rather what others are selling at.” In this market, very recent comps and pending sales should be what you look at not some guy on the market for 180 days with no offers, unless you want the same results.

jenny, I can’t believe you are actually taking my advice, to be honest i was taking a stab at it and I have no idea where Antioch is, make your realtor earn his/her money and find out what comps are pending just to get a better idea. I do think that a big chunk will get the job done, as muggle pointed out, chasing the rabit down the hole, 5k at a time just keeps you consistently overpriced, get a shotgun, shoot the rabbit and be done with it before things get worse. The house muggle chronicled would probably be sold if he had put up the price he has it at today when he started a few months ago. Let us know how it goes and in six months I bet you will see nicer houses on the same street begging for what you get now.

[temeculaguy]

Thanks muggle, sometimes I post and laugh at my jokes thinking I am the only one who gets them. I should have elaborated about the pricing that should not be based on what others are listing at, “rather what others are selling at.” In this market, very recent comps and pending sales should be what you look at not some guy on the market for 180 days with no offers, unless you want the same results.

jenny, I can’t believe you are actually taking my advice, to be honest i was taking a stab at it and I have no idea where Antioch is, make your realtor earn his/her money and find out what comps are pending just to get a better idea. I do think that a big chunk will get the job done, as muggle pointed out, chasing the rabit down the hole, 5k at a time just keeps you consistently overpriced, get a shotgun, shoot the rabbit and be done with it before things get worse. The house muggle chronicled would probably be sold if he had put up the price he has it at today when he started a few months ago. Let us know how it goes and in six months I bet you will see nicer houses on the same street begging for what you get now.

[temeculaguy]

Thanks muggle, sometimes I post and laugh at my jokes thinking I am the only one who gets them. I should have elaborated about the pricing that should not be based on what others are listing at, “rather what others are selling at.” In this market, very recent comps and pending sales should be what you look at not some guy on the market for 180 days with no offers, unless you want the same results.

jenny, I can’t believe you are actually taking my advice, to be honest i was taking a stab at it and I have no idea where Antioch is, make your realtor earn his/her money and find out what comps are pending just to get a better idea. I do think that a big chunk will get the job done, as muggle pointed out, chasing the rabit down the hole, 5k at a time just keeps you consistently overpriced, get a shotgun, shoot the rabbit and be done with it before things get worse. The house muggle chronicled would probably be sold if he had put up the price he has it at today when he started a few months ago. Let us know how it goes and in six months I bet you will see nicer houses on the same street begging for what you get now.

[sdduuuude]

Sharkey – I think that is the right kind of analysis to do.

How much monthly income would you get get (pre-tax) if you put the net sale proceeds into the bank. That math shows it a “close” decision – i.e. they’ll be fine either way. I mean, when someone gives you a house and you have no house payment, it is a no-lose decision. You either get $1200/month of revenue (less income tax) or a $250K windfall (less $60K for cap gain tax).

Also – vrundy. If they do sell, I agree that is the best strategy. Take two weeks to a month to clean it up, spend $5 – $10K, spend some time looking at comps, undercut them, get an agent who knows what they are doing.

You can’t write-off capital losses, but they can offset other capital gains, if they exist.

D

[sdduuuude]

Sharkey – I think that is the right kind of analysis to do.

How much monthly income would you get get (pre-tax) if you put the net sale proceeds into the bank. That math shows it a “close” decision – i.e. they’ll be fine either way. I mean, when someone gives you a house and you have no house payment, it is a no-lose decision. You either get $1200/month of revenue (less income tax) or a $250K windfall (less $60K for cap gain tax).

Also – vrundy. If they do sell, I agree that is the best strategy. Take two weeks to a month to clean it up, spend $5 – $10K, spend some time looking at comps, undercut them, get an agent who knows what they are doing.

You can’t write-off capital losses, but they can offset other capital gains, if they exist.

D

[sdduuuude]

Sharkey – I think that is the right kind of analysis to do.

How much monthly income would you get get (pre-tax) if you put the net sale proceeds into the bank. That math shows it a “close” decision – i.e. they’ll be fine either way. I mean, when someone gives you a house and you have no house payment, it is a no-lose decision. You either get $1200/month of revenue (less income tax) or a $250K windfall (less $60K for cap gain tax).

Also – vrundy. If they do sell, I agree that is the best strategy. Take two weeks to a month to clean it up, spend $5 – $10K, spend some time looking at comps, undercut them, get an agent who knows what they are doing.

You can’t write-off capital losses, but they can offset other capital gains, if they exist.

D

[jennyo]

Thanks for the info about the cap gains losses, apparently I got bad info on that. At least there will be no cap gains tax on it since it is worth less today than it was at the time of death.

Temeculaguy, while I wish I could say the price drop was based on your advice, my husband actually made the decision without my input yesterday afternoon. Am not thrilled about the way he did it, but OK with the result, as long as the thing sells. The comps are all out of whack, but the agent has been seeing sales in the neighborhood in the $250k range for similar houses. While this one is kind of junky, it is a larger house (most of the houses are 2/1, 1000 square feet; this one is 3/1, 1410 square feet).

In all, a very different situation than when I put my 1200 square foot 2/1 on the market in 2003 and it sold the same day for the asking price….

[jennyo]

Thanks for the info about the cap gains losses, apparently I got bad info on that. At least there will be no cap gains tax on it since it is worth less today than it was at the time of death.

Temeculaguy, while I wish I could say the price drop was based on your advice, my husband actually made the decision without my input yesterday afternoon. Am not thrilled about the way he did it, but OK with the result, as long as the thing sells. The comps are all out of whack, but the agent has been seeing sales in the neighborhood in the $250k range for similar houses. While this one is kind of junky, it is a larger house (most of the houses are 2/1, 1000 square feet; this one is 3/1, 1410 square feet).

In all, a very different situation than when I put my 1200 square foot 2/1 on the market in 2003 and it sold the same day for the asking price….

[jennyo]

Thanks for the info about the cap gains losses, apparently I got bad info on that. At least there will be no cap gains tax on it since it is worth less today than it was at the time of death.

Temeculaguy, while I wish I could say the price drop was based on your advice, my husband actually made the decision without my input yesterday afternoon. Am not thrilled about the way he did it, but OK with the result, as long as the thing sells. The comps are all out of whack, but the agent has been seeing sales in the neighborhood in the $250k range for similar houses. While this one is kind of junky, it is a larger house (most of the houses are 2/1, 1000 square feet; this one is 3/1, 1410 square feet).

In all, a very different situation than when I put my 1200 square foot 2/1 on the market in 2003 and it sold the same day for the asking price….

[sdduuuude]

Jennyo – please make sure you spend some time with an accountant on the tax implications of this. Inheiritance, cap gains, cap losses – its complicated. Better to know going in that after the fact. This forum is no place for tax advice – you never know who is telling you stuff.

I am under the impression that you could take capital losses in one year to offset capital gains in future years. Again – I’m not sure about that, but make sure you ask a real accountant, OK?

[sdduuuude]

Jennyo – please make sure you spend some time with an accountant on the tax implications of this. Inheiritance, cap gains, cap losses – its complicated. Better to know going in that after the fact. This forum is no place for tax advice – you never know who is telling you stuff.

I am under the impression that you could take capital losses in one year to offset capital gains in future years. Again – I’m not sure about that, but make sure you ask a real accountant, OK?

[sdduuuude]

Jennyo – please make sure you spend some time with an accountant on the tax implications of this. Inheiritance, cap gains, cap losses – its complicated. Better to know going in that after the fact. This forum is no place for tax advice – you never know who is telling you stuff.

I am under the impression that you could take capital losses in one year to offset capital gains in future years. Again – I’m not sure about that, but make sure you ask a real accountant, OK?

[lonestar2000]

Check out AMTrustDirect. They offer an e-Money Market checking account with an APY of 5.36% and a 12 month CD at 5.41%.

http://www.amtrustdirect.com/pages/default.aspx

It is one of the best money market accounts. Your $200k will net you nearly $11k a year in the e-Money Market fund and you’d stay liquid, withdrawing as you need. More if you’re willing to keep the money locked in the CD.

As the markets tank over the coming years, having $215k sitting in a bank account will be a very beatiful thing to behold.

[lonestar2000]

Check out AMTrustDirect. They offer an e-Money Market checking account with an APY of 5.36% and a 12 month CD at 5.41%.

http://www.amtrustdirect.com/pages/default.aspx

It is one of the best money market accounts. Your $200k will net you nearly $11k a year in the e-Money Market fund and you’d stay liquid, withdrawing as you need. More if you’re willing to keep the money locked in the CD.

As the markets tank over the coming years, having $215k sitting in a bank account will be a very beatiful thing to behold.

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