All Forum Posts by: Seattle Matt

Thanks for your information and the link.  I think it will all clarify for me when I go through my taxes next year after selling the house. 

Ryan, yes, I understand all of this.  My question is, does the $250K count as income for my tax basis for that year and does this automatically put me in 20% bracket. 

So I'm about to sell my primary residence, if the profit is roughly 450,000, and I am eligible for $250,000 capital gains exemption, it means that I will be paying capital gains on the remaining $200,000.

My question is this: in this scenario does that mean the first $250,000 counts as income which puts me into the tax bracket for 20% capital gains? Which means anytime someone takes the $250,000 exemption, any remaining capital gains would always be 20%?

Am I missing something here?

I wanted to follow up with this posting with the details of my PSA. Below are the items that I have noted that concern me.  I am worried about timeline at this point, I have the house prepared and ready to sell on the market,  If I sign this PSA I do not want to be left with this back on the market 3 months later when the market has gone down and we are heading into the winter slow season. 

1. Buyer shall verify within 14 days after mutual acceptance (the “Feasibility Contingency Expiration Date”) the suitability of the Property for Buyer's intended purpose.

I think this means the buyer has 14 days to decide if they want to proceed at all. 

2. Earnest Money to be deposited directly with Escrow three business days following written waiver of Feasibility Contingency.

I believe this means that the earnest money is not active until after the "14" day feasibility study. 

3. Closing date is December 2020

Does this mean they can back out any time between 14 days and dec and only lose the Earnest money?  I still have to pay mortgage, utilities, etc for another 6 m?

Earnest money is 20k

Thank you, Megan, if I calculate that correctly, the 385 - 23k for agent commissions plus other fees, comes pretty close to $340K.  That's the boat I'm in, if I sell for 700K through an agent, my take home is less that 650K, so the dev is still a better option.  

I will receive the PSA on Monday (tomorrow), then I'll post my numbers for more review.  Meanwhile I will look for other devs. 

My main concern is I need to determine whether or not I should sign with a real estate agent and sell on the market or start looking at developer investment options more seriously. If I take this offer for example am I shooting myself in the foot by tying up the property for at least 30 days while they give me their proper offer.

Thanks Brian, it looks like I should look around and see if there are other developers interested. Some of the factors that I need to consider look like the following

1. Is the property being "assigned" to someone else? With a middleman who takes a cut? How does that affect me? 

2. It sounds like earnest money is compounded over time, which is great but I am a bit worrisome about the chance of it going to court

3. I don't know the first thing about how to find a lawyer, all the people I know who have lawyers hate them and hate paying some crazy fees so that process is daunting to me. 

 My neighbors are friends of mine and will likely hate me 😒

Hello, I'm relatively new to the forum, but I've been lurking for a few years.

I'm just about to list my home in Seattle for sale, likely with Redfin.  Since they have rezoned my neighborhood I have received inquiries from developers. 

I developer offered me 675K with an optional 12M closing.  My potential agent would like to list around 700K, I am thinking 725K.  Zillow has the value at 697K.   

What are some of the drawbacks to selling directly to the developer?  What if they back out and the market goes down?  Hidden costs, etc?