From the IRS or for the IRS?
D2 is still trying to buy in Manhatten and still having a hard time. She has made three offers, one below, one at and one above asking price. But all were outbid. So why do they price a place at a price that they know will go for higher? Obviousely to generate interest and bidding. But it makes it very difficult for the buyer.
My D1 is a trader, so she would like to approach buying real estate the same way. Her job is market making, buying and selling in currency. She deals with millions of dollars. So I would hope she knows what she is doing and will keep her cool and not get swept up in a sellers market. But she really wants to buy a place.
We finally have some houses coming on the market in our neighborhood, but not really moving very fast. Prices have been very stagnant - definitely a buyer’s market here in suburban Chicago.
D, on the other hand, lives in South Boston and it is booming. She’s in a three-unit condo building - all tenants moved in when it was new almost four years ago. The bottom-floor tenant listed hers for sale a couple of weeks ago. She bought for $369,000 and listed for $569,000 (2b/2b/930 sq. ft./no reserved parking spot). It sold in two days, which meant it likely went above listed price. It’s crazy! It’s Southie for heaven’s sake.
D sent us an article that said average one-bedroom rentals in her neighborhood of South Boston are going for $3400/month. She said she could easily get $4000-$4500/month for her unit if she rented it out because it’s a two-bedroom, two bath. I think her roommate knows she’s very lucky to be paying MUCH less than half that for her rent to D.
Im glad im not a small business owner.
A local blues club, under the viaduct, in not a great building or location, has had their rent increased by $10,000 a month.
im surprised that would be legal.
Two houses on our street just sold for $200,000 over asking price, thankfully, our street is not zoned for multiples, as developers are prepared to pay high prices for lots, knowing that they can multiply it when they build condos.
, http://www.seattletimes.com/business/real-estate/money-from-investor-visas-floods-us-doesnt-reach-poor-areas-meant-to-benefit/
Chinese are buying connecting lots and building compounds for their families, in the next neighborhood over, havent seen it too much yet in mine.
In US, you can buy land and hand it down to your descendents, whereas in China it reverts to the government after 75 years or so. That, along with a safer food supply, and cleaner watsr & air than in China, make the US, very attractive to wealthy Chinese.
http://www.seattlemag.com/article/how-foreign-investment-changing-our-neighborhoods
No wonder prices are crazy.
I’ve been approached twice in the last month to sell my house in cash.
^^So are you going to sell, or not even considering it?
No. I don’t like to move. But I did get an offer for another house that’s more expensive than the one I currently reside, also in cash by another Asian buyer, not Chinese, he enclosed a picture of his own family. Not sure why. Maybe to show they are decent people by looks.
People seem to be using anything they can to get the property. My friend got seventeen offers, with pleading letters from all. One person had grown up in the house. Another person wanted it because it was close to the hospital where their kid got cancer treatments. So many sob stories, yikes, I wouldn’t want to read any of it. I’d want to give all of them the house.
@DrGoogle How far back does the the IRS keep our tax records? If someone claimed deduction on a house in the past tax returns, when selling the house that person must add back the deduction to the selling price for tax purpose. If the IRS does not have the old tax records of that person then the IRS cannot verify whether that person add the past deduction or not.
Bus, you must be a nice person. I would charge them double for how desperate they want my house because I have proofs. Capitalist mentality here.
Interesting one letter wrote to keep the letter in case I change my mind in the future. The guy sound like an optimistic guy. I threw them in my worms bin. Let the worms chew on it.
Hey, I’m all for the capitalist mentality, but I’m a complete sucker for a sob story. I’d probably reduce the price and help them move in. Which is why I don’t want to read any letters, and why I avoid meeting our tenants and try to get my husband to do it!
Unless they are cash purchases you can’t charge more than the house will appraise for. Capitalist mentality has its limits.
Jym, it’s cash offer so that’s where I get my capitalist thinking. But for people who can afford to pay cash for this type of house, I won’t believe in any sob stories.
I guess having watched my about to be married today son go through this, that philosophy really pains me
Jym, don’t take my words literally. I’m only half kidding on CC.
No worries- my mind is on other things today. Wedding in a few hours.
I’m surprised you are on CC, I would be all busy preparing. Have a great day!
They are doing yoga at the moment. I am communing with my blanket and pillow.
*Unless they are cash purchases you can’t charge more than the house will appraise for. Capitalist mentality has its limits.
*
?
I’m not sure I understand.
The homes on our street were asking for market value but I’m assuming bidding wars pushed the sale price to hundreds of thousands over market. Which now increases market, I guess.
Post 838, most lenders won’t approve a loan for a house which sells over bank appraisal. The buyers would have to pay the difference themselves, so that often sends the participants back to the table.