[jennyo]

bsrsharma, the only caveat to using this as an example is that, as sellers, we are in a much different position than many others selling homes in this market. It is an inherited house, with no mortgage, so we can go pretty low since anything we get out of it is gravy.

[jennyo]

Update-we got an offer a week ago for $160,000, with a $15,000 owner carry. Our agent recommended we respond with an equally outrageous counter offer, so we did ($250,000, the asking price, with a $25,000 carry). Of course that “buyer” walked. Yesterday another offer, $200,000 with a 30-day escrow, we pay some of the escrow costs normally paid by the buyer, clear pest sections 1 and 2, and 3 percent cash back at closing. We are countering with $215,000 and agreeing to all the terms the buyer requested (escrow costs, pest, cash back, etc). We know that when the home inspection is done that they will come back with some items so we want a little wiggle room for those things, which we will likely agree to cover (depending on the reasonableness). It seems weird that the buyer is asking for a 30-day escrow (usually that only benefits the seller)so I am hoping it is safe to assume his financing is lined up?? We will see what happens.

[jennyo]

Update-we got an offer a week ago for $160,000, with a $15,000 owner carry. Our agent recommended we respond with an equally outrageous counter offer, so we did ($250,000, the asking price, with a $25,000 carry). Of course that “buyer” walked. Yesterday another offer, $200,000 with a 30-day escrow, we pay some of the escrow costs normally paid by the buyer, clear pest sections 1 and 2, and 3 percent cash back at closing. We are countering with $215,000 and agreeing to all the terms the buyer requested (escrow costs, pest, cash back, etc). We know that when the home inspection is done that they will come back with some items so we want a little wiggle room for those things, which we will likely agree to cover (depending on the reasonableness). It seems weird that the buyer is asking for a 30-day escrow (usually that only benefits the seller)so I am hoping it is safe to assume his financing is lined up?? We will see what happens.

[jennyo]

Update-we got an offer a week ago for $160,000, with a $15,000 owner carry. Our agent recommended we respond with an equally outrageous counter offer, so we did ($250,000, the asking price, with a $25,000 carry). Of course that “buyer” walked. Yesterday another offer, $200,000 with a 30-day escrow, we pay some of the escrow costs normally paid by the buyer, clear pest sections 1 and 2, and 3 percent cash back at closing. We are countering with $215,000 and agreeing to all the terms the buyer requested (escrow costs, pest, cash back, etc). We know that when the home inspection is done that they will come back with some items so we want a little wiggle room for those things, which we will likely agree to cover (depending on the reasonableness). It seems weird that the buyer is asking for a 30-day escrow (usually that only benefits the seller)so I am hoping it is safe to assume his financing is lined up?? We will see what happens.

[jennyo]

I have a small second mortgage through Etrade bank. If they go out of business, do I have to keep paying the mortgage?(-: They are pretty freakish about late payments. Once I had to schedule my online payment for the 2nd day of the month instead of the 1st and they had a notice in the mail to me from a collection agency that day! By the time I received the notice, the check had already cleared my account, but when I called them they said it is their normal practice to send out notices if the payments are not received by the first of the month.

[jennyo]

I have a small second mortgage through Etrade bank. If they go out of business, do I have to keep paying the mortgage?(-: They are pretty freakish about late payments. Once I had to schedule my online payment for the 2nd day of the month instead of the 1st and they had a notice in the mail to me from a collection agency that day! By the time I received the notice, the check had already cleared my account, but when I called them they said it is their normal practice to send out notices if the payments are not received by the first of the month.

[jennyo]

I have a small second mortgage through Etrade bank. If they go out of business, do I have to keep paying the mortgage?(-: They are pretty freakish about late payments. Once I had to schedule my online payment for the 2nd day of the month instead of the 1st and they had a notice in the mail to me from a collection agency that day! By the time I received the notice, the check had already cleared my account, but when I called them they said it is their normal practice to send out notices if the payments are not received by the first of the month.

[jennyo]

We do have a tax accountant advising us, as this is house is just one peice of a larger trust and estate of which my husband is the executor. The Antioch house is not subject to probate because it was included in the trust and bequeathed solely to my husband and no other heirs, but there are other assets being sold/liquidated through the probate process (including 2 other POS rental properties) so having the tax accountant on board has been essential.

While we are pretty clear on the capital gains treatment of real estate that is inherited, as well as the other aspects of estate and inheritance taxes, the issue of how capital losses can be accounted for was not as clear. It makes sense that we would only be able to offset cap gains with cap losses, not offset other types of taxes. I guess no more Turbo Tax for me…

[jennyo]

We do have a tax accountant advising us, as this is house is just one peice of a larger trust and estate of which my husband is the executor. The Antioch house is not subject to probate because it was included in the trust and bequeathed solely to my husband and no other heirs, but there are other assets being sold/liquidated through the probate process (including 2 other POS rental properties) so having the tax accountant on board has been essential.

While we are pretty clear on the capital gains treatment of real estate that is inherited, as well as the other aspects of estate and inheritance taxes, the issue of how capital losses can be accounted for was not as clear. It makes sense that we would only be able to offset cap gains with cap losses, not offset other types of taxes. I guess no more Turbo Tax for me…

[jennyo]

We do have a tax accountant advising us, as this is house is just one peice of a larger trust and estate of which my husband is the executor. The Antioch house is not subject to probate because it was included in the trust and bequeathed solely to my husband and no other heirs, but there are other assets being sold/liquidated through the probate process (including 2 other POS rental properties) so having the tax accountant on board has been essential.

While we are pretty clear on the capital gains treatment of real estate that is inherited, as well as the other aspects of estate and inheritance taxes, the issue of how capital losses can be accounted for was not as clear. It makes sense that we would only be able to offset cap gains with cap losses, not offset other types of taxes. I guess no more Turbo Tax for me…

[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….

[jennyo]

Thanks everyone for the comments. Some a little harsh, but most likely accurate. We are lowering to $249K tomorrow, maybe that will at least generate a lowball offer. My husband is pretty adamant about not wanting to keep this thing.

[jennyo]

Thanks everyone for the comments. Some a little harsh, but most likely accurate. We are lowering to $249K tomorrow, maybe that will at least generate a lowball offer. My husband is pretty adamant about not wanting to keep this thing.

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