If that is the case why is he asking us to move the closing date to April 1st? Because of The Capitol Gains Tax. Did not want to leave any appliances, not willing to budge on price and still claims that he is breaking even?
2007-02-09 23:51:40 · 8 answers · asked by ranierom 1 in Business & Finance ➔ Renting & Real Estate
It doesnt matter if the closing date was Feb 2 or April 1.
The term "net capital gains" means the amount by which your net long term capital gain for the year is more than your net short term capital loss.
So when the closing date happens within the year it doesnt mean anything.
Did you not sign a purchase and sales agreement with the seller. This is the binding contract and the provisions in the document will spell out certain events which must take place before escrow can close. In your agreement you should have a provision for date of closing. The seller must accept or change the date and then you must accept before the seller can accept your offer. If he wants the closing date to be on april 1 it is probaly because thats when he can get into were ever he is going. ALl that capital gains stuff has notthing to do with it .especially if he is breaking even he wont even have to worry about any taxes on the money he gets since more than likely it will all be going to pay off what he owes on the house. You obviously accepted his asking price and his terms or you wouldnt of bought the house. If he made money or didnt make money should be of no concern to you really and he shouldnt be going around commenting if he didnt make any money or not. If he hasnt owned the property that long and has invested alot of money into it or has taken out a second mortgage then it is very possible that he didnt make any money. My mom even took a loss recently because of all the money she had put into it and only had it for a short time. Most people take thier fridgerator when they move but the stoves and dishwashers usually stay since they are fitted but there is no rule that they have to stay. You can ask that they leave the appliances and it is up to the seller if they want to accept or not. About the price it could be the realtor that is unwilling to budge on thier profit and only blaming it on the owner not willing to take less. If you werent happy about the price then you should of spoken up and stuck to what you wanted to offer. If the seller stil refused then you should of just started looking for another house with the price that you are willing to pay. The closing date has nothing to do with capital gains.
2007-02-10 01:33:25 · answer #1 · answered by hersheynrey 7 · 1⤊ 0⤋
The closing date is set on the contract. Hold him to it. If he really is breaking even then there is no Capitol Gains. If he won't budge on anything why should you? Ask your agent and stand firm.
Can't change anything if the contract is signed unless both parties agree to an amendment.
2007-02-10 00:59:02 · answer #2 · answered by Anonymous · 2⤊ 0⤋
What does it matter if he makes a profit? I hate it when someone says to me "Oh they only paid 100k so why should I give 150k?"
But they fail,l to realize that people put a lot of money into fixing up their homes. Maybe they just got a really good deal.
I still do not understand why people care what other people make off a property?
Ever think he used the i am breaking even as a negotiating tactic? You cant get mad at him for out smarting you.
Good Luck,
RE Agent,
Remax
2007-02-10 00:04:35 · answer #3 · answered by frankie b 5 · 1⤊ 0⤋
You wrote you "purchased a home" so why would you care if he became Donald Trump over-night? If the deal is acceptable to you, getting the sale conditions you can live with and have closed the sale or the sale is in escrow and finalized except for the final signing and now he has to live in a refrigerator box and eat stone soup...well, that's his problem! If you are negotiating the sale try not to call him an idiot and keep looking.
2007-02-10 00:57:20 · answer #4 · answered by Anonymous · 1⤊ 0⤋
It should not matter to you if he is breaking even or not. You have to decide what you are willing to pay for the property. If the seller wants more, don't buy it. You cannot force him to lower his price.
If you really want the property and are willing to spend a few hundred dollars, hire your own real estate appraiser. If the appraised amount is significantly less than the asking price, confront the seller with your appraisal.
2007-02-10 00:05:47 · answer #5 · answered by regerugged 7 · 1⤊ 1⤋
Doesn't matter. You should have everything in writing. Sounds like you are doing this yourself and will get SCREWED around if you don't get it on a contract or get an agent. He's already tried to get the appliances which should be covered in the contract. Get a lawyer.
2007-02-10 00:56:30 · answer #6 · answered by zocko 5 · 0⤊ 1⤋
You didn't purchase it yet then. Do you have a contract? Did you go through a realtor? Ask a local attorney about the closing date. His financial affairs should not be your concern.
2007-02-09 23:56:17 · answer #7 · answered by Anonymous · 0⤊ 0⤋
if you didn't like the terms than you shouldn't have signed the contract. If where you live allows a legal 'cooling off' period you could back out of the deal if you wanted.
2007-02-09 23:57:33 · answer #8 · answered by darklydrawl 4 · 0⤊ 0⤋