Archive for June, 2007
Overpricing Your Home Will Cost You the Sale and Lost Value
June 25th, 2007 categories: San Diego Real Estate, Selling San Diego Real Estate
One of the serious consequences of over pricing your home is that it will sit unsold on the market. It becomes shop worn and then it simply languishes on the market until it expires.
When you re-list the property, the market conditions have usually changed and not only is a serious price adjustment going to become evident, when it does finally sell it will be for so much less that it might have been when it was first introduced to the market
How did it get to market so overpriced in the first place?. If the agent takes the over priced listing with the hope that in time the seller will become more realistic over time, both the seller and the agent are going to have wasted a lot of time and some valuable resources.
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The Structured Sale ( Con’t )
June 22nd, 2007 categories: Investing in San Diego Real Estate, San Diego Real Estate, Selling San Diego Real Estate
One of the best ways to understand the Structured Sales is to think of it as an Installment sale with enhancements.
Understanding the flow is easily done with the following flow chart. Permission was granted for me to use this chart from Capstone Bay as they are assisting one of my clients currently working on a Structured Sale.
Flow Chart courtesy of Capstone Bay
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The Basics of a structured Sale
June 22nd, 2007 categories: Investing in San Diego Real Estate, San Diego Real Estate, Selling San Diego Real Estate
The Structured Sale is a vehicle to defer a big tax bite into more bite size portions. A seller who owns appreciated real estate holdings that they acquired through the a 1031 Exchange and would prefer to Cash Out, the structured sale may be just the idea whose time has come.
The way it works is similar to the installment sale. A Structured Sale combines all of the tax-referral benefits associated with a traditional Installment Sale, while providing guaranteed interest-bearing income payments and lump-sum distributions over a period of time in the form of an annuity.
I put a flow chart in to the previous post for reference. It shows the way the basic structured sales works and the the parties involved. This Structured Sale vehicle is particularly beneficial to those individuals who are ready to “cash out” of the appreciated asset, such as real property.
In preparation for converting that asset into income for retirement and/or estate planning purposes, the structured sale might be the preferred way to proceed. Because its a guaranteed income, it may fit their need for a consistent, stable, and predictable income. This idea is especially useful as it might apply to circumstances such as transitioning a parent or themselves into retirement-oriented or even “assisted” living situations.
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What a homeowner should know about appraisals
June 22nd, 2007 categories: Selling San Diego Real Estate
The author of this definition of appraiser is unknown to me. One thing is certain, as clever as I am, I could never have written this insightful definition.
“An appraiser is one who compiles and analyzes voluminous data of problematical accuracy from sources of dubious veracity and derives therefrom a numerical quantification of unquestionable necessity, analogous to a nebulous and euphemistic concept representational of value commensurate with ambient configurations of the open market and promulgates thereby a precise written declamation which delineates his observation, deliberations and conclusions all done while he feigns absolute ignorance of the avaricious machinations of Buyers, Sellers, Brokers and Lenders, compensated only by that penurious stipend known as the professional fee.”
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San Diego and The Housing Market Staging a Comeback!
June 19th, 2007 categories: San Diego Real Estate
The San Diego Real Estate market gets it share of negative publicity but lately it seems that the press have backed off a bit and things really are normalizing. The market as they say is just the market. We needed a cooling off period to allow some to adjust from one of the hottest real estate temperatures any where in the country. Yes, that s right we needed a cooling down period to get to a more normal market of supply and demand.
The feeding frenzy slowed down and people ( both Buyers and Sellers )are better able to take stock of their prior and upcoming buying decisions. Sellers who made a bundle over the last number of years have had to adjust and now must provide a quality well priced product to be competitive.
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