Selling as a Foreigner

[DS MokNgo]

Hi All,

I am a foreigner to US and considering to sell my property in North Phoenix. WIthout doing any rehab, I was told it would sell for 300-325k; with rehab (spending of 25-30k) it might be able to sell for 360-380k.

I only approached 1 agent so far, and after negociation it will be 5.5% commission split between buying and seller realtors. Is it reasonable? If I negociate further does that mean it is not fair for the realtors / they might not trying as hard to sell my property?

Another ques is I wonder if FIRPTA (Foreign Investment in Real Property Tax) applies to me. If so, is it 10% or 15% of the selling price? my accoutant said it might apply to me and it will be 15%, but from the IRS video, it says 10% (https://www.irsvideos.gov/Individual/education/FIRPTA#:~:text=FIRPTA%20is%20a%20tax%20law,is%20normally%20the%20purchase%20price.)

Note that I have been filing my US Tax Return via my accoutant yearly, although I haven't been paying any extra tax yet, i guess because the accumulated loss has been more than the income.

If FIRPTA does apply to me, is it possible to play around with the number, say instead of selling the property for 325k, I sell it for 299.5K, but get the buyer to pay the comission to the agent and other fees like closing cost etc?

I am open for any feedback / resouces. Thank you!

[Noah Corwick]

Hi DS! I am an agent and investor in PHX, and would love to chat with you. I just shot you a DM.