Julie Cleland

Whadda Ya Mean They Said “NO”?!?!
February 23, 2010 · Julie Cleland · 3 Comments

agent yelling jpgThere is a subject that’s been coming up a lot lately…the subject of Low Ball offers.    It would seem many are advocates of offering a price on a house that is well below asking & what the current market will support.  The thinking goes, you are showing the seller you will not be taken advantage of and you have the upper hand in negotiations.  What never seems to be addressed is the notion that the seller might not be interested in playing this game and will simply say “NO”.  No counter offer and negotiations officially over.

 If a seller wants to sell and a buyer wants to buy then there is no reason a deal can’t be worked out.  This is predicated on the idea that both parties are going into this with a willingness to negotiate in good faith.  Writing under asking is not a bad idea, writing a reasonable offer below the asking says to the seller “I like your house and want to buy it, we just have a difference in opinion of value.”  A low ball offers sends a different message.      Read more

Ron Ricard - Investment Property Exchange Services, Inc

Converting your Primary Residence into Rental Property
September 2, 2009 · Ron Ricard - Investment Property Exchange Services, Inc · 5 Comments

The tax code allows you to keep some or all of the gain on the sale of a primary residence if you meet certain conditions.  IRC §121 permits the exclusion of realized capital gain of $250,000 for a single person and $500,000 for a married couple upon the sale of a home that was their primary residence for any two years during the five years preceding the sale.  If your gain is in excess of this exclusion, you may have to pay capital gain tax on the amount over the exemption.  This exemption cannot be used more than once every two years.

 Let’s assume you have lived in your home as a primary residence more than two years, but decide to move out and turn the property into rental housing.  If you sell the property less than three years after you move out, you still qualify for that primary residence exemption of $250,000 or $500,000.  So if your gain (profit) is less than those thresholds, you will have no tax to pay on your gain, though you will have to pay depreciation recapture tax on the amount that you depreciated the property while it was a rental.   Read more