[XBoxBoy]

I’m wondering if before we all get up in arms about this, if someone could explain to me, how exactly this bailout worked. Ya know… the logistics.

If I understand things correctly, this is what has happened:

1) Home builders had profits in past years, and they paid income tax on those profits.

2) Because of market changes the homebuilders are now taking losses.

3) Prior to the change in the law if this happened you could revise your previous taxes going back up to two years and move some of your current losses back to the profitable years, thus reducing your previous taxes. The difference in taxes will then be refunded to you.

4) The law was changed to allow home builders (maybe others as well?) to move their losses back up to five years which allows them to recoup more previously paid taxes.

Is this more or less correct? I’m no accountant, so all this could be completely wrong. If so, can someone straighten me out? (My wife would really appreciate it, she’s been trying for years and can’t quite seem to get me straightened out. Though she swears I’m getting better!)

Thanks,

XBoxBoy

[XBoxBoy]

I’m wondering if before we all get up in arms about this, if someone could explain to me, how exactly this bailout worked. Ya know… the logistics.

If I understand things correctly, this is what has happened:

1) Home builders had profits in past years, and they paid income tax on those profits.

2) Because of market changes the homebuilders are now taking losses.

3) Prior to the change in the law if this happened you could revise your previous taxes going back up to two years and move some of your current losses back to the profitable years, thus reducing your previous taxes. The difference in taxes will then be refunded to you.

4) The law was changed to allow home builders (maybe others as well?) to move their losses back up to five years which allows them to recoup more previously paid taxes.

Is this more or less correct? I’m no accountant, so all this could be completely wrong. If so, can someone straighten me out? (My wife would really appreciate it, she’s been trying for years and can’t quite seem to get me straightened out. Though she swears I’m getting better!)

Thanks,

XBoxBoy

[XBoxBoy]

I’m wondering if before we all get up in arms about this, if someone could explain to me, how exactly this bailout worked. Ya know… the logistics.

If I understand things correctly, this is what has happened:

1) Home builders had profits in past years, and they paid income tax on those profits.

2) Because of market changes the homebuilders are now taking losses.

3) Prior to the change in the law if this happened you could revise your previous taxes going back up to two years and move some of your current losses back to the profitable years, thus reducing your previous taxes. The difference in taxes will then be refunded to you.

4) The law was changed to allow home builders (maybe others as well?) to move their losses back up to five years which allows them to recoup more previously paid taxes.

Is this more or less correct? I’m no accountant, so all this could be completely wrong. If so, can someone straighten me out? (My wife would really appreciate it, she’s been trying for years and can’t quite seem to get me straightened out. Though she swears I’m getting better!)

Thanks,

XBoxBoy

[XBoxBoy]

[quote=sddodo]I am looking at a couple of places where I have a good sense of fair market value.[/quote]

In that case, you should base your offer on what you think fair market value is and how much you wanted the place. If you really like the place, make an offer slightly below fair market value. If you love the place, maybe even slightly above. If you only kinda liked the place, low ball. (10-20% below what you see as fair market)

Ignore their asking price or BPO (unless it was well below what you think is fair market) and ignore any comments listing agents or others make about how so many offers were coming in that and you better make your very best offer. Also I’d suggest you don’t do much in the way of negotiating unless I really want the place.

Then sit back and let karma run it’s course.

If you really feel you should be negotiating then I’d warn you… Short sales and REOs are where people get caught up in the whole thing, thinking they are going to steal one from the bank, and instead they end up overpaying. Forget it’s a short sale, forget it’s a bank, think of it as just a seller. Look at the recent closed sales, how much off of asking were they, and more importantly what was fair market value. The bank is really no different than a regular seller, they want the most they can get for the place. In La Jolla, what I’ve seen is for the most part the short sales are no better deals, they just take longer to close.

Also keep in mind, that spring selling season is coming. Late last summer there were over 300 SFRs in La Jolla, and now there are only 200. A bunch of places will be back, and there will be more coming onto the market. I doubt demand will jump up enough to cause an increase in prices, but summer will definitely bring an increase in selection.

XboxBoy

[XBoxBoy]

[quote=sddodo]I am looking at a couple of places where I have a good sense of fair market value.[/quote]

In that case, you should base your offer on what you think fair market value is and how much you wanted the place. If you really like the place, make an offer slightly below fair market value. If you love the place, maybe even slightly above. If you only kinda liked the place, low ball. (10-20% below what you see as fair market)

Ignore their asking price or BPO (unless it was well below what you think is fair market) and ignore any comments listing agents or others make about how so many offers were coming in that and you better make your very best offer. Also I’d suggest you don’t do much in the way of negotiating unless I really want the place.

Then sit back and let karma run it’s course.

If you really feel you should be negotiating then I’d warn you… Short sales and REOs are where people get caught up in the whole thing, thinking they are going to steal one from the bank, and instead they end up overpaying. Forget it’s a short sale, forget it’s a bank, think of it as just a seller. Look at the recent closed sales, how much off of asking were they, and more importantly what was fair market value. The bank is really no different than a regular seller, they want the most they can get for the place. In La Jolla, what I’ve seen is for the most part the short sales are no better deals, they just take longer to close.

Also keep in mind, that spring selling season is coming. Late last summer there were over 300 SFRs in La Jolla, and now there are only 200. A bunch of places will be back, and there will be more coming onto the market. I doubt demand will jump up enough to cause an increase in prices, but summer will definitely bring an increase in selection.

XboxBoy

[XBoxBoy]

[quote=sddodo]I am looking at a couple of places where I have a good sense of fair market value.[/quote]

In that case, you should base your offer on what you think fair market value is and how much you wanted the place. If you really like the place, make an offer slightly below fair market value. If you love the place, maybe even slightly above. If you only kinda liked the place, low ball. (10-20% below what you see as fair market)

Ignore their asking price or BPO (unless it was well below what you think is fair market) and ignore any comments listing agents or others make about how so many offers were coming in that and you better make your very best offer. Also I’d suggest you don’t do much in the way of negotiating unless I really want the place.

Then sit back and let karma run it’s course.

If you really feel you should be negotiating then I’d warn you… Short sales and REOs are where people get caught up in the whole thing, thinking they are going to steal one from the bank, and instead they end up overpaying. Forget it’s a short sale, forget it’s a bank, think of it as just a seller. Look at the recent closed sales, how much off of asking were they, and more importantly what was fair market value. The bank is really no different than a regular seller, they want the most they can get for the place. In La Jolla, what I’ve seen is for the most part the short sales are no better deals, they just take longer to close.

Also keep in mind, that spring selling season is coming. Late last summer there were over 300 SFRs in La Jolla, and now there are only 200. A bunch of places will be back, and there will be more coming onto the market. I doubt demand will jump up enough to cause an increase in prices, but summer will definitely bring an increase in selection.

XboxBoy

[XBoxBoy]

[quote=sddodo]I am looking at a couple of places where I have a good sense of fair market value.[/quote]

In that case, you should base your offer on what you think fair market value is and how much you wanted the place. If you really like the place, make an offer slightly below fair market value. If you love the place, maybe even slightly above. If you only kinda liked the place, low ball. (10-20% below what you see as fair market)

Ignore their asking price or BPO (unless it was well below what you think is fair market) and ignore any comments listing agents or others make about how so many offers were coming in that and you better make your very best offer. Also I’d suggest you don’t do much in the way of negotiating unless I really want the place.

Then sit back and let karma run it’s course.

If you really feel you should be negotiating then I’d warn you… Short sales and REOs are where people get caught up in the whole thing, thinking they are going to steal one from the bank, and instead they end up overpaying. Forget it’s a short sale, forget it’s a bank, think of it as just a seller. Look at the recent closed sales, how much off of asking were they, and more importantly what was fair market value. The bank is really no different than a regular seller, they want the most they can get for the place. In La Jolla, what I’ve seen is for the most part the short sales are no better deals, they just take longer to close.

Also keep in mind, that spring selling season is coming. Late last summer there were over 300 SFRs in La Jolla, and now there are only 200. A bunch of places will be back, and there will be more coming onto the market. I doubt demand will jump up enough to cause an increase in prices, but summer will definitely bring an increase in selection.

XboxBoy

[XBoxBoy]

[quote=sddodo]I am looking at a couple of places where I have a good sense of fair market value.[/quote]

In that case, you should base your offer on what you think fair market value is and how much you wanted the place. If you really like the place, make an offer slightly below fair market value. If you love the place, maybe even slightly above. If you only kinda liked the place, low ball. (10-20% below what you see as fair market)

Ignore their asking price or BPO (unless it was well below what you think is fair market) and ignore any comments listing agents or others make about how so many offers were coming in that and you better make your very best offer. Also I’d suggest you don’t do much in the way of negotiating unless I really want the place.

Then sit back and let karma run it’s course.

If you really feel you should be negotiating then I’d warn you… Short sales and REOs are where people get caught up in the whole thing, thinking they are going to steal one from the bank, and instead they end up overpaying. Forget it’s a short sale, forget it’s a bank, think of it as just a seller. Look at the recent closed sales, how much off of asking were they, and more importantly what was fair market value. The bank is really no different than a regular seller, they want the most they can get for the place. In La Jolla, what I’ve seen is for the most part the short sales are no better deals, they just take longer to close.

Also keep in mind, that spring selling season is coming. Late last summer there were over 300 SFRs in La Jolla, and now there are only 200. A bunch of places will be back, and there will be more coming onto the market. I doubt demand will jump up enough to cause an increase in prices, but summer will definitely bring an increase in selection.

XboxBoy

[XBoxBoy]

I’ve watched La Jolla closely for about five years now and I think it’s important to keep in mind that much of what you hear about less expensive areas just isn’t true in La Jolla. (While I haven’t followed Del Mar that closely, I think the situation is similar)

First, there are comparatively few short sales and even fewer REOs. Often those that do go this route are in poor condition or have issues. (Although there have been one or two really, really, expensive houses in trouble) But most sales are non-distress sales.

In general, the REOs or short sales aren’t going for much of a discount. There’s enough demand in La Jolla so that anything priced appropriately will sell quickly, and most of the short sales are priced above what I would consider them to be worth. Most lower their prices eventually. I’ve seen very few short sales where the listing was on the market and then went contingent in a couple of days. There have been a couple of places appear as contingent for amazing prices, but I haven’t seen them close, and I suspect they are insider deals. Not sure how you get in on an “insider deal” and who’s palm you gotta grease to get there.

Lastly, I’ll point out that many of the “deals” that seem to happen aren’t short sales or REOs. Instead they are owners who have owned the house for a long time and for whatever reason want to sell. Because they don’t owe a ton, they can sell and still come out ahead, so they price to sell.

Not sure how helpful these comments are, but hopefully somewhat.

XBoxBoy

[XBoxBoy]

I’ve watched La Jolla closely for about five years now and I think it’s important to keep in mind that much of what you hear about less expensive areas just isn’t true in La Jolla. (While I haven’t followed Del Mar that closely, I think the situation is similar)

First, there are comparatively few short sales and even fewer REOs. Often those that do go this route are in poor condition or have issues. (Although there have been one or two really, really, expensive houses in trouble) But most sales are non-distress sales.

In general, the REOs or short sales aren’t going for much of a discount. There’s enough demand in La Jolla so that anything priced appropriately will sell quickly, and most of the short sales are priced above what I would consider them to be worth. Most lower their prices eventually. I’ve seen very few short sales where the listing was on the market and then went contingent in a couple of days. There have been a couple of places appear as contingent for amazing prices, but I haven’t seen them close, and I suspect they are insider deals. Not sure how you get in on an “insider deal” and who’s palm you gotta grease to get there.

Lastly, I’ll point out that many of the “deals” that seem to happen aren’t short sales or REOs. Instead they are owners who have owned the house for a long time and for whatever reason want to sell. Because they don’t owe a ton, they can sell and still come out ahead, so they price to sell.

Not sure how helpful these comments are, but hopefully somewhat.

XBoxBoy

[XBoxBoy]

I’ve watched La Jolla closely for about five years now and I think it’s important to keep in mind that much of what you hear about less expensive areas just isn’t true in La Jolla. (While I haven’t followed Del Mar that closely, I think the situation is similar)

First, there are comparatively few short sales and even fewer REOs. Often those that do go this route are in poor condition or have issues. (Although there have been one or two really, really, expensive houses in trouble) But most sales are non-distress sales.

In general, the REOs or short sales aren’t going for much of a discount. There’s enough demand in La Jolla so that anything priced appropriately will sell quickly, and most of the short sales are priced above what I would consider them to be worth. Most lower their prices eventually. I’ve seen very few short sales where the listing was on the market and then went contingent in a couple of days. There have been a couple of places appear as contingent for amazing prices, but I haven’t seen them close, and I suspect they are insider deals. Not sure how you get in on an “insider deal” and who’s palm you gotta grease to get there.

Lastly, I’ll point out that many of the “deals” that seem to happen aren’t short sales or REOs. Instead they are owners who have owned the house for a long time and for whatever reason want to sell. Because they don’t owe a ton, they can sell and still come out ahead, so they price to sell.

Not sure how helpful these comments are, but hopefully somewhat.

XBoxBoy

[XBoxBoy]

I’ve watched La Jolla closely for about five years now and I think it’s important to keep in mind that much of what you hear about less expensive areas just isn’t true in La Jolla. (While I haven’t followed Del Mar that closely, I think the situation is similar)

First, there are comparatively few short sales and even fewer REOs. Often those that do go this route are in poor condition or have issues. (Although there have been one or two really, really, expensive houses in trouble) But most sales are non-distress sales.

In general, the REOs or short sales aren’t going for much of a discount. There’s enough demand in La Jolla so that anything priced appropriately will sell quickly, and most of the short sales are priced above what I would consider them to be worth. Most lower their prices eventually. I’ve seen very few short sales where the listing was on the market and then went contingent in a couple of days. There have been a couple of places appear as contingent for amazing prices, but I haven’t seen them close, and I suspect they are insider deals. Not sure how you get in on an “insider deal” and who’s palm you gotta grease to get there.

Lastly, I’ll point out that many of the “deals” that seem to happen aren’t short sales or REOs. Instead they are owners who have owned the house for a long time and for whatever reason want to sell. Because they don’t owe a ton, they can sell and still come out ahead, so they price to sell.

Not sure how helpful these comments are, but hopefully somewhat.

XBoxBoy

[XBoxBoy]

I’ve watched La Jolla closely for about five years now and I think it’s important to keep in mind that much of what you hear about less expensive areas just isn’t true in La Jolla. (While I haven’t followed Del Mar that closely, I think the situation is similar)

First, there are comparatively few short sales and even fewer REOs. Often those that do go this route are in poor condition or have issues. (Although there have been one or two really, really, expensive houses in trouble) But most sales are non-distress sales.

In general, the REOs or short sales aren’t going for much of a discount. There’s enough demand in La Jolla so that anything priced appropriately will sell quickly, and most of the short sales are priced above what I would consider them to be worth. Most lower their prices eventually. I’ve seen very few short sales where the listing was on the market and then went contingent in a couple of days. There have been a couple of places appear as contingent for amazing prices, but I haven’t seen them close, and I suspect they are insider deals. Not sure how you get in on an “insider deal” and who’s palm you gotta grease to get there.

Lastly, I’ll point out that many of the “deals” that seem to happen aren’t short sales or REOs. Instead they are owners who have owned the house for a long time and for whatever reason want to sell. Because they don’t owe a ton, they can sell and still come out ahead, so they price to sell.

Not sure how helpful these comments are, but hopefully somewhat.

XBoxBoy

[XBoxBoy]

Sorry to hear you’re going through this. A parent in the hospital is always a bad time.

[quote=NicMM]What papers that I should not sign? In ER room, I signed most of the paper for my father with his name. But there was one paper for transferring to hospital, I was asked to sign my name and put relationship to him. I did it.
NicMM[/quote]

I think this drives home the importance of reading what you are signing before you sign. I realize that while your dad is in the ER, you probably feel pretty helpless, and of course concerned for your dad. Rightly so, but still it is important to read the papers. I wouldn’t be surprised if one of those papers stated that by signing you agree to be libel for all costs. The fact that you didn’t sign your name but your dad’s may make a difference, but sorry, I’m not a lawyer and don’t know if that will matter.

[XBoxBoy]

Sorry to hear you’re going through this. A parent in the hospital is always a bad time.

[quote=NicMM]What papers that I should not sign? In ER room, I signed most of the paper for my father with his name. But there was one paper for transferring to hospital, I was asked to sign my name and put relationship to him. I did it.
NicMM[/quote]

I think this drives home the importance of reading what you are signing before you sign. I realize that while your dad is in the ER, you probably feel pretty helpless, and of course concerned for your dad. Rightly so, but still it is important to read the papers. I wouldn’t be surprised if one of those papers stated that by signing you agree to be libel for all costs. The fact that you didn’t sign your name but your dad’s may make a difference, but sorry, I’m not a lawyer and don’t know if that will matter.

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