All Forum Posts by: Matthew Hurst

Every situation is different - here is some general information on whether selling real property is taxed as capital gains vs ordinary income + self-employment tax.

There is a 9-factor test.  Apparently it's more complicated than just whether the property was rented.  

https://www.thetaxadviser.com/...

I really like the idea of using large tiles for a countertop. Thank you for sharing your success.

What did you put underneath the tiles? What holds them in place?

As a logistical matter, keep in mind that property records are not always updated.  

In my area, when a sale happens, a deed will be recorded in the Official Records at the Clerk of Court's Office.  The deed will appear in online searches of the Clerk of Court's Official Records within several days to a week.  The new owners will appear in the property appraiser's data within several weeks to two months.  They will appear in the tax collector's database several months later.  Different localities and states may divide up the record keeping differently, but in any event, the name associated with the property in the records may not necessarily be updated.  

Many people have stated they have had more success getting offers accepted when working directly with the listing agent (and no agent of their own).  One reason could be that information flows faster when there are fewer people through which it must be relayed.  

Even the most dedicated agent cannot be instantly available 24/7 - and is not expected to be.  They have other clients and their own personal lives.  If the buyer's agent is working with another client, a counteroffer or request for more documents may not get relayed to the buyer immediately.  That delay may hinder back-and-forth negotiations and subtle information may get lost.  For example, perhaps a seller cares mostly about the price, or perhaps the seller cares more about other terms like number of days until closing, number of inspection days, or other contingencies.  

The situation where each side has their own agent reminds me of the children's game "telephone", where a message is relayed through many people and much of it ends up getting garbled.  

In some situations, it would seem only having one agent involved - working as a transaction broker - would make it easier for each party to figure out what terms are most important to the other, so that each side gets as much of what they want as possible.  Where there are multiple offers, the buyers working with the listing agent would seem to be in the best position for negotiations.  

I've bought two properties so far and here is my perspective.

I've worked directly with the listing agent when possible. W

hen you mention your offer price, their immediate response - including whether they are eager to write up an offer - may give you some idea as to whether it's worth pursuing. It's in the interest of both parties that the sale actually happen, and in neither party's interest to waste alot of time if buyer and the seller are too far apart at this point in time.

Of course, there can be some variation from agent to agent, depending on the agent's philosophy about writing low-ball offers and how busy they are, but their response will still give you some idea as to whether it's worth making an offer.

As a fellow buyer, here are some reasons why a short sale would go for less than your offer and less than the listing price.

In my area, home inspections are not done until the bank has given short sale approval - otherwise, the buyer may pay for an inspection on a property that isn't really available.

Many of the short sales were severely neglected, and are being sold "AS IS", back association fees (e.g. $10k), upcoming special assessments or defunct associations, so it is not surprising that the buyer may renegotiate with the bank for a lower price. While some of these defects may have been known at the time of the offer, others may not be apparent from a simple walk through and limited time for due diligence that occurred.