HomeReport
Real Estate & Finance News That Affects Your Home                                                         Page  1 2 3 4

July 2009 - Page 3

TODAY'S MARKET Right Sales Price Is Buyer's Call Proper pricing is critical to a timely sale in any market. Most home sellers tend to want to set their price in relation to what their neighbors have sold for or are asking now, sometimes ignoring current market conditions and the differences between homes. When pricing a home -- especially in today's housing market -- we find it's helpful for sellers to understand what governs a buyer's decision to purchase. Here's a quick look at how buyers view price: Monthly payments are usually more important to buyers than the sales price. The "out of pocket" cash needed at settlement/closing is a big factor with buyers. All buyers want to cash in on a good deal. Buyers have often shopped the competition and know how your home compares. Buyers recognize value and shy away from overpriced homes. Buyers don't want to pay for your mistakes (paying too much when you purchased, over-improving the home, poor-quality remodeling jobs, etc.). Buyers have no interest in how much money you need to realize from the sale to make your next move.

Property-Tax Reimbursements From Buyers May Be Taxable If you are selling a home and want to a avoid a future tax audit, remember this: any tax reimbursement you receive from the buyer for previously-deducted property taxes is considered income by Uncle Sam.Because property taxes are typically paid in advance, it's not uncommon for a buyer to reimburse the seller for the unused balance of the year at settlement. Thanks to current rules, all lawyers, title companies, escrow agents and brokers involved in a settlement must report the amount of the property tax reimbursement to the IRS. Now IRS computers can cross-check annual income tax returns with property tax adjustment figures already reported to them. Consult a qualified tax professional for full details.

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