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What would you do? Selling your home

So I'll try to make this as short and sweet as possible.

June 12th will be exactly 2 years of owning my condo. If I close even 1 day before then, I have to pay capital gains tax (about $10k total which is a lot of mulah when we're using the money from the sale of my condo to buy another home).

There is also a problem with some small pipes in my condo, so there is a possibility we may go into litigation but I don't know when. But if we do, I can only sell to cash buyers.

My condo is in a very desirable area. Two other units went pending after 10 and 20 days. I put my condo on the market this past Thursday.

This morning my Realtor emailed me with 2 offers. Pretty cool except they both want quick closings (end of this month).

One is a cash offer $5k under asking price, so even if we closed after my condo goes into potential litigation, there is no issue. The other is full asking but contingent on their home closing.

I plan on having my Realtor tell them there are multiple offers and to submit their best offer.

Anyways, my question is, if neither of them can agree to close after June 12th, would you wait for more offers or just suck it up and pay the $10k come tax time and chose one the best offer out of these two?

I don't think I'd have any problem getting more offers, but do I want to take that chance?
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Re: What would you do? Selling your home

  • Well I probably wouldn't have put it on the market this early, but just over 60 days is not an unreasonable amount of time to ask either.  Do you even have somewhere to go?

    I would wait for more offers if neither of these work out. 

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  • labrolabro member
    First Anniversary First Answer First Comment 5 Love Its

    I also don't think it's unreasonable to counter with a different closing date than your potential buyers have asked for. 60 days isn't unreasonable at all. I'd rather counter first then try to deal with paying capital gains tax.



  • agree with the others that putting it on this early knowing it would likely sell quickly seemed kind of odd. I also don't really understand the pipe thing, are you saying there is an issue with the pipes and if it goes into litigation then it is a big enough deal someone couldn't get a mortgage on the property?  Has this been disclosed to the buyers (potential pipe issues?) or maybe it doesn't have to be?

    If you need to stretch this out I wouldn't say best and final, I'd counter with each and see where it goes. Just because they want a quick close doesn't mean you can't counter back with a 60 day close. If that doesn't work with the cash buyer, perhaps the other one is better suited since they have a house to sell too and that contingency buys you time. 

    That being said you don't want your house sitting out there getting stale on the market, especially if things usually sell quickly because as a buyer I'd be wondering why yours is still sitting there 60 days later when most have contracts after 10-20 days.

  • 10k is a lot of money to part with over such a small reason. When you add that to the closing costs on your new house, it'll end up being $15 to $20k just out the window. 

    I would ask for a 60 day closing period as well.  That's actually what my closing was on our house.  If the one buyer is contingent on their own house selling, I would think that might work better for that buyer.  
  • behsco90behsco90 member
    5 Love Its First Anniversary First Comment Name Dropper
    edited April 2015
    Yes, I know putting it on the market so early was risky, but I had to take that chance because if it went into litigation before I put it on the market, I probably wouldn't be able to sell it. No lenders will finance a property that is in litigation, so I would only be able to sell to cash buyers and probably at a much lower price.

    I have disclosed the issue with the pipes, as required by law, however this area is so desirable some people are willing to look past it.

    I don't think we will go into litigation, they will probably just give each homeowner a special assessment to pay to get them fixed, but my HOA keeps us somewhat in the dark, so I am just assuming based on other HOAs in the area with the same problem.
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  • You have to remember that a "quick closing" is sometimes used to make an offer more attractive, so it may very well be that they won't mind stretching it out.

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  • I would have your Realtor tell them it's a multi-offer situation and ask them to submit their best offers. The cash offer may go up - possibly the $10K you need to pay the cap gains tax.

    I'd rather pay the cap gains tax than mess around with litigation down the road. Hopefully you worked that $10K into the asking price - that would have been the smart thing to do if you put it up for sale before June 12th, knowing the area sells quickly.
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  • STARMOON44STARMOON44 member
    First Comment First Answer 5 Love Its Name Dropper
    edited April 2015
    I wouldnt go back and just ask for their best offers. I'd go back and push on closing date. Re the litigation risk won't this still be a risk until you close? I'd accept whichever of these offers is the most money and the latest closing date unless you've gotten a more attractive offer during negotiations.
  • Litigation with who? The HOA? The builder? I'm pretty confused about that aspect of it. But I would definitely hold out for a longer closing or another offer. 1-2k eh sucky but not the end of the world, but 10k?! Yikes no way.

                                                                     

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  • @luckya23 that's what I'm hoping, especially if the area is sought after that they are willing to wait a few more weeks to close.

    @southernbelle0915 this is what I plan on doing, and having her let the other agents know that a longer closing is more desirable. I did try working it in, but the higher my profit, the higher the tax.

    @STARMOON44 yes it would still be a risk, not much I can do, but there is an HOA meeting this week and I plan on getting every last bit of info from them that I can about the issue.
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  • I would ask a Realtor re: countering with a revised close date vs asking for highest/best, and take their advice. Most of us are not Realtors.

    I would never just choose to fork over $10k if I didn't absolutely have to. 

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  • If you're worried about the litigation, and it sounds like you are since you listed so early, I wouldn't second guess yourself and keep waiting and potentially risking it. It seems to me that you already made that call and should stick with it.
  • Just remember that you still have to disclose that there may be litigation in the near future. Selling now does not change that if you have knowledge of it.



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  • Just remember that you still have to disclose that there may be litigation in the near future. Selling now does not change that if you have knowledge of it.

    She said above that she disclosed it.
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  • Just remember that you still have to disclose that there may be litigation in the near future. Selling now does not change that if you have knowledge of it.

    She said above that she disclosed it.
    Oops, I'm on a roll in the stupid department.



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  • Also keep in mind, even if you disclose the problem, you are also required to give your buyers all of the HOA documents, including information about the potential litigation... so that could freak people out once you're under contract with them.  They could ask you to give them money to pay for any potential special assessments.

    But yeah, I wouldn't have listed it now, but who knows, maybe one of those buyers is willing to wait til June to close since the area is desireable.  
    Married 9.12.15
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  • You can counter offer with a closing date of June 12.  Then you can rent the buyers your condo until that date.  They will get occupancy when they need it, and you won't have to pay taxes on anything except their rent payments.
    This is not risk free, so talk to your real estate agent.
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  • You can still negotiate with the "best and final" offer according to my experience, especially if it is the closing date and not the purchase price.

    I wouldn't close early, it isn't worth the $10k penalty.  If necessary I would take the listing down, wait a few weeks and relist.  If nothing else the offers you have received will let you know what the market will handle as far as a list price.
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  • Thanks ladies.

    The cash offer said they would be willing to wait until June to close. But before I sent my agent the signed paperwork, a third offer came in! Full asking price and cash! He even said if there were more competing offers, he would pay $1k more than the competing offer!

    Though I'm still waiting to hear back if he is okay with June closing, but he seems pretty motivated so I'm sure he'd be okay with it.
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  • Wow that's great!! Hope it works out!

                                                                     

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  • behsco90 said:

    Thanks ladies.

    The cash offer said they would be willing to wait until June to close. But before I sent my agent the signed paperwork, a third offer came in! Full asking price and cash! He even said if there were more competing offers, he would pay $1k more than the competing offer!

    Though I'm still waiting to hear back if he is okay with June closing, but he seems pretty motivated so I'm sure he'd be okay with it.

    Awesome! But just in case...
    CMGragain said:

    You can counter offer with a closing date of June 12.  Then you can rent the buyers your condo until that date.  They will get occupancy when they need it, and you won't have to pay taxes on anything except their rent payments.
    This is not risk free, so talk to your real estate agent.

    This won't work, you have to live in the residence for 24 months of the past 5 years to avoid capital gains. So renting it to the buyer isn't an option. GL!!
    :kiss: ~xoxo~ :kiss:

  • behsco90 said:

    Thanks ladies.

    The cash offer said they would be willing to wait until June to close. But before I sent my agent the signed paperwork, a third offer came in! Full asking price and cash! He even said if there were more competing offers, he would pay $1k more than the competing offer!

    Though I'm still waiting to hear back if he is okay with June closing, but he seems pretty motivated so I'm sure he'd be okay with it.

    Awesome! But just in case...
    CMGragain said:

    You can counter offer with a closing date of June 12.  Then you can rent the buyers your condo until that date.  They will get occupancy when they need it, and you won't have to pay taxes on anything except their rent payments.
    This is not risk free, so talk to your real estate agent.

    This won't work, you have to live in the residence for 24 months of the past 5 years to avoid capital gains. So renting it to the buyer isn't an option. GL!!
    Oops!  I think you are correct!  Thank you!
    httpiimgurcomTCCjW0wjpg
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