We’re looking at possibly trying a “house swap” of sorts which would finally rid us of the “spec house from hell”.
Seems there’s an older couple in town that are now empty nesters. (Had 5 kids) They’re now looking to buy something smaller, and like the spec house. But they say they have to sell the house they live in first.
After thinking about it a while, I wondered if their house would work for us to live in. The one we live in now is about 1,100 square feet and only 2 bedrooms. We need more space for several reasons.
So we went and looked at their house. There’s a pic here if you want to see what we’re looking at. It’s a neat old house with about 2,700 square feet of space. Just a wee bit more than we have now. (-:
But getting back to the original point – I was thinking about how best to approach the situation. My thought was to offer them a fairly low amount for their house, and make it contingent on their offering us a fairly low amount for the spec house.
My reason for this is twofold. First, it would help keep the amount of the realtor’s commision lower. (We have the same realtor, so she’ll make about $15,000 off the deal) The second reason is that I was hoping the lower selling prices would help keep our taxable appraised values down, keeping our taxes lower.
I wasn’t thinking about offering a RIDICULOUSLY low number – Maybe 10% below the appraised value. (We have appraisals on both houses)
Is there any reason that I haven’t thought about that makes this a bad idea?
Love is an exploding cigar we willingly smoke.
Replies
Hello Boss, too bad that they are already listed with a realtor, you could make the deal between you and save alot. I don't know about where you are at, but here in the county I live in in Indiana the taxes are based on the apprased value, not the selling price. So a lower sales figure would not help with the taxes, but would help with the commision.
Try talking to the realtor, and see if something else other than a actual sale can be worked out. Maybe something like a quit claim deed.
Good luck.
Mike
Taxes are computed off assessed value, but assessed value is computed off recorded sale prices.Any jackass can kick down a barn, but it takes a carpenter to build one.
Hey Boss,
Just a couple of questions and thoughts. The q's - Are you living in the Spec? I can't recall. Is the larger house in the right neighborhood for you? Schools ok? Does DW like it?
I understand the property tax issue, but be careful you don't come in too low. The taxing authority may appraise your property higher and tax you on that basis. Also since your realtor has both sides of the deal, maybe they would be willing to cut their commission a point to get the deal done and you don't run the risk of ticking off the taxing authority.
Are the appraisals recent and are the comps truly comps? What are the financing options? Do they have a mortgage on their property? Can you work some financing out with them that would benefit you both (ie. cash flow for them and low interest for you or higher interest smaller purchase price).
Oh, and when you get to settlement (I am being optimistic for you!View Image) watch out for those add on junk fees!!!! Real men don't pay points!!!View Image
Dang, you ask a lot of questions! But here goes:
"Are you living in the Spec?"
Nope. We live in an older house we bout 12 years ago and have remodeled. We have a renter in the spec house.
"Is the larger house in the right neighborhood for you?"
The neighborhood is ideal. Quiet, upscale, similar houses around it, and the ward is mostly Republican..............(-:
"Schools ok?"
Small town - Only one school
"Does DW like it?"
Yup. One Son loves it and would move tomorrow. The other Son says it's O.K., but he isn't excited. Doesn't care WHERE we live, as long as he gets his own room.
"Are the appraisals recent and are the comps truly comps?"
They just had an appraisal done last week, and shared it with us. We had an appraisal done on the spec house in 2001, which we shared with them also. The "Comps" that were used are reasonable, I think. But I'm certainly no expert on that.
"What are the financing options?"
Our mortgage is with the bank we've done business with all my life. We'll get a mortgage through them, I'm sure. I'm not sure what their situation is.
"Real men don't pay points!!"
Never have - One of the benifits of a small town bank.The people who get on in this world are the people who get up and look for the circumstances they want, and, if they can’t find them, make them [George Bernard Shaw]
Oh, I get it! You're just like that Cloud Hidin fella....already got it figured out, just testin us!!! :-)
Seriously, it sounds like you have a good handle on it. If you can get the realtor to reduce the commission and get the price right for both parties, it sounds great. I don't think you can do a Starker because the house you are buying will be your primary residence, but maybe a good RE attorney can structure it to save you some taxes. Good luck.Frank
It would be smart for you to drive around and look at the comps that were used on both places and to try to find out how long those places were for sale before they sold and what the list prices started at compared to what they sold for.
I know this stuff can be a lot of work, but remember that not only will you pay for the new place, but you'll pay about any equal amount in interest on whatever you borrow.Any jackass can kick down a barn, but it takes a carpenter to build one.
you are really getting hit with commissions doing this exchange. why not 1) not work out the details with the other owner now, but agree in principle if the houses don't sell to talk about it after your listing contract expires; 2) wait until the listing contracts expire with the realtor and then work out the details with the other owner and not lose the $15,000? nothing wrong with this. The realtor is only able to collect after the expiration if you have a deal worked out in place and are trying to circumvent their money.
You still haven't sold that spec house??? I read your thread a long time ago, can you do an update boss hog on what's been happening in the meantime? I get tempted to build a spec house every once in a while, would like to know why it's sat on the market so long and your travails since the last spec house thread. Have you thought about renting it out?
and Mike - what part of indiana you in? me - northwest side indianapolis.
remodeler
Ron, Ask whoever does your income taxes about how a 1031 exchange works. You might just save yourself a pile of taxes.
I have acted as Escrow Agent for a few of these tax-free exchanges, but I don't really know the ins and outs.
Good luck - sometimes you have to think outside the box, and you might just wind up with a bigger box ! !
Greg.
Greg, is that also called a Starker exchange? I've read several real estate QA columns that mention it as a tax free way to exchange equivalent property.
I don't think 1031's applicable here. It is for pushing capital gains off when selling an investment property. If you then buy higher-value investment property you can defer the capital gains. That would apply to Boss's tax situation, but not to any tax on income he would owe at the sale of the spec home (i.e. the appreciation of the property is capital gains, the fair value of his labor input is taxable income).
But the 1031 isn't the other property owner's situation - they are more likely subject to capital gains exemption based on the $250k/$500k and 2 yrs residency aggregate out of last five rule for owner/occupiers.
I would like to know how the tax situation on the spec house works out. If you occupy the property for two years thus selling it exclusive of capital gains, does that negate fair value of labor input as a taxable income?
remodeler
Starker is simply a company which specializes in being the "exchange facilitator" for a 1031 exchange.
I seriously doubt that a 1031 would apply here since it implies that profit was made!
Also, a 1031 exchange only puts off paying taxes, IT DOESN'T CUT THE TAX BILL! Sorry for yelling at you. I get tired of pointing out that little detail to would be investors.Any jackass can kick down a barn, but it takes a carpenter to build one.
>why not 1) not work out the details with the other owner now, but agree in principle if the houses don't sell to talk about it after your listing contract expires; 2) wait until the listing contracts expire with the realtor and then work out the details with the other owner and not lose the $15,000? nothing wrong with this. The realtor is only able to collect after the expiration if you have a deal worked out in place and are trying to circumvent their money.
I'd love to hear Hasbeen's thoughts on this, being he's a Realtor and all. My recollection is that if intro's are made during their contract, it's their deal. This seems like an obvious attempt to circumvent their fee (the suggestion here, not Boss). If this was allowed, then every seller and buyer could meet and just wait till the contract was over.
Whatcha say, Hasbeen?
>I'd love to hear Hasbeen's thoughts on this, being he's a Realtor and all. My >recollection is that if intro's are made during their contract, it's their deal. This >seems like an obvious attempt to circumvent their fee (the suggestion here, not >Boss). If this was allowed, then every seller and buyer could meet and just wait till >the contract was over.
I'm sure a realtor's thought on it would be low just as ours would be on someone trying to take money from our pockets. But it does work in situations where the property is not selling at a price the seller considers reasonable by the agent. What it doesn't protect Boss on is if he or the other owner receives a reasonable offer to the end of the listing contract, and they throw it out because they want to do a side deal to cut the realtor's commission out. "Good faith". A situation this works is: say I want to buy a house listed at $200,000. I would pay $179,000 for it. I send the owner a letter stating I would be interested in talking to them after their listing expires if the house stays unsold, and to call me. If he calls then I can introduce him to my thinking on my offer - he's saving $14,000 in commissions anyway, and I expect a premium for a hard to sell property. If I work out the details or make an agreement with him that he doesn't sell the property in good faith while it's listed to a reasonable offer, then the realtor is owed his commission.
You have a valid point, I think, but you remind me of the saying that "a little knowledge is dangerous".
I'm really not sure what you last post was trying to say. Because I'm not sure what you are trying to say, I'll just make the following statements: No agreement for real estate is binding unless it is in writing. Anyone would be foolish to pass on a sale in hope of selling later on a word of mouth agreement. If both parties listing contracts expire, including their hold over periods, they can sell to each other and owe no commission. There is more to getting a sale closed than most people seem to realize. Someone has got to do the work and most folks simply don't know how.
I built and remodeled for quite a few years. Even in your biz I bet you've run into people who were just sure it shouldn't cost that much or take that much time and, besides, remodelers don't have any overhead, do they? ; )Any jackass can kick down a barn, but it takes a carpenter to build one.
Small point, but I'm proudly NOT a realtor. I'm a real estate broker. Realtor is a term owned by the national association of realtors. NAR is an organization which spends almost all of it's income paying its officers and promoting itself in stupid TV ads, etc. that prey on people's worries and lack of understanding of real estate transacitons, IMO. For my office of four to join NAR it would cost us several thousand per year and that money would head straight out of our already poor economy. Compound that by the number of licensees and, as the joke goes, pretty soon you're talking about real money! But what the hell, I'm just not a joiner.Any jackass can kick down a barn, but it takes a carpenter to build one.
Hello remodeler, I live in a small southern town called Jasper. It is just north if I64 about half way between Louisville and Evansville.We are the people our parents warned us about. J. Buffett
"you are really getting hit with commissions doing this exchange. why not 1) not work out the details with the other owner now, but agree in principle if the houses don't sell to talk about it after your listing contract expires; 2) wait until the listing contracts expire with the realtor and then work out the details with the other owner and not lose the $15,000? nothing wrong with this. The realtor is only able to collect after the expiration if you have a deal worked out in place and are trying to circumvent their money. "
Standard listing contract does not work that way. Any sale to buyer located by agent is 'commissionable' even after listing term expires. Obviously, any sales agent would have to be nuts to negotiate this clause away. The agent made the introduction, and did his/her part of the bargain. Trying to slink out of this agreement now would be an act of bad faith. Negotiating new terms to 'save the deal' is possible, and relatively common for a double-commission situation.
Clause for commission after the listing has expired is called the "hold over" clause. At least here it is for a specific amount of time, stated in the listing contract.Any jackass can kick down a barn, but it takes a carpenter to build one.
"why not 1) not work out the details with the other owner now, but agree in principle if the houses don't sell to talk about it after your listing contract expires"
First off, the realtor has that covered in the listing agreement - We can't do that. I also think it's inappropriate and wouldn't do it anyway.
"You still haven't sold that spec house??? I read your thread a long time ago, can you do an update boss hog on what's been happening in the meantime?"
We had given up on selling it and had more or less resigned ourselves to living in it in the summer of 2002. But we were approached by someone who needed a place to rent badly, and only had a few days to move. So we rented it to them.
They're ideal renters, if a bit on the unusual side. He had taken a job near town, and had rented a house here. His Wife and 2 (adorable) teenage daughters came up with him and stayed for a while. But the Wife didn't like the small town life, so went back to the house from where they lived before, with daughters in tow. (They hadn't sold it yet)
The guy still rents the place. When he's working, he stays at the spec house. When he's not working he goes back home to his family. Kinda different.
But it's ideal for us. He's hardy ever there so he doesn't interfere with showing it. And his Wife is a neat freak so the place is immaculate.
Basically the house has been on the market for 2.5 years, and we've only had one offer on it. And it was pathetically low. We're on our 3rd realtor at the moment.
We still have the option of kicking out the renter and moving into the spec house, but aren't thrilled with the idea. The house is fine - We just don't want to live in that neighborhood. That's how the idea of the house swap came about.I have never been able to conceive how any rational being could propose happiness to himself from the exercise of power over others. [Thomas Jefferson]
Two sales would happen if this deal works out, the sale of Boss's place and the sale of the place to Boss. Thus, Boss would only be paying the commission he'd be paying anyway.
It might interest you to know that less than 10% of those who take the classes to become real estate brokers are in the real estate business five years later. That's largely because real estate deals seem to bring out the worst in many people. It's the biggest ticket item most of us ever buy, it's more emotional than a carpenter buying a truck, and it's a mystery to most people what is actually going on during the transaction. Most anyone could learn, but few want to make the effort.
Wish you were here so I could have you do some remodeling for me and then stiff you for payment. (ooonly kidding) Any jackass can kick down a barn, but it takes a carpenter to build one.
Just wanted to say good luck getting it done, but then what do we tease you about once the spec is gone?
and what happens to the house you're currently in?
"what do we tease you about once the spec is gone?"
What, like you guys haven't teased me about 50 other things over the years ???
Actually - I've recieved very little kidding about the spec house. Maybe everybody think I take it too seriously?
I've also recieved very little criticism about it, even though it's pretty obvious I made some mistakes along the way. Guess it's because I'm so cute and loveable..........(-:
"what happens to the house you're currently in?"
Haven't decided yet. It will either be sold or rented.For most folks, no news is good news; for the press, good news is not news.
we, or at least I, don't tease about the spec, cause it's a money issure, lossing cash just isn't funny...
Now that pesky webbing in the attic today that had to go, cause it was in my way, I can replace that right? and if not, I can just build my own trusses up there, just like the old ones right???
Don't you have homework you should be doing ???
#$%&*#%$# smart-a$$ed college kids...............Wanna jump start your brain? Do us all a favor and stick your finger in a light socket.
37003.20 in reply to 37003.19
Don't you have homework you should be doing ???
#$%&*#%$# smart-a$$ed college kids...............
Too funny bro.....way too funny......lollllll
I didn't read your post thorough enough..didn't realize you already had an agent so my refer or is that reefer....ok ok..us college kidz, I know....that idea is out of the picture now. Too late. But still, give Katrina a call. Theres no more knowledgeable broker then her...no kidding!
Be well
andyMy life is my practice!
http://CLIFFORDRENOVATIONS.COM
Thanks fer the offer. Katrina has GOT to be nicer to talk to than some cranky old carpenter................(-:Forget about world peace. Visualize using your turn signal
Thanks for the tutorial on real estate. I've learned quite a lot.
Very generous of you to post all those replies. Cheers!
p.s. Have you read "Independence Day" (Richard Ford)?Alan Jones
You're welcome!
Nope, haven't read it.Any jackass can kick down a barn, but it takes a carpenter to build one.
The house you're buying looks great -- The only thing I'd look at closer and maybe change is the window in the small dormer on the right. In the pic it looks like it might be glass louvers with a piece of ply filling in the top.
-- J.S.
I agree, it's a very pretty house. My mental image of the prototypical nice small town house.
"The only thing I'd look at closer and maybe change is the window in the small dormer on the right. In the pic it looks like it might be glass louvers with a piece of ply filling in the top. "
Actually, it's an attic fan that's been stuck in a window up there.
I have more pics of the house if anyone is interested.Life is like toilet paper... when the end is near, we panic!
If you buy it, shoot and share the grand tour after you get settled in. It's a beauty.
-- J.S.
"If you buy it, shoot and share the grand tour after you get settled in."
I have 8 or 10 more pics I could post, but I wasn't sure how much interest there would be in seeing them. Don't want to trouble folks with stuff they don't wanna see.Q: What has 75 balls and screws little old ladies?A: BINGO.
Older age CRS and can't remember how????
BTW. Cool looking house Boss
Who ever invented work didn't know how to fish....
when has this group ever objected to pics of anything?
don't be shy.
>Don't want to trouble folks with stuff they don't wanna see.
Yeah, everything else here is so utterly fascinating that pix of a really nice house might just piss us off.
"Yeah, everything else here is so utterly fascinating that pix of a really nice house might just piss us off."
HA!
Hey Boss, that is a fine lookin' house, so here's a vote for more pics. Seems like it could be a win-win-win situation. Surely the realtor will reduce the fees or compromise in some fashion given that both owners will have to vacate and relocate practically simultaneously and/or incur storage and hotel fees and so on. This sounds like a story on alternative house sales or something. Maybe Inspired House editors would be interested? Have you seen that forum?
I'm excited for you and hope you all can figure something out that works perfectly. One thing you can certainly hype the spec house on is that it is practically brand new and immaculate, so they can retire to a "new" place, and get a "fresh start" and all those trite yet meaningful phrases. If this comes about, and it seems a serendipitous situation, you may find yourself getting a phone call or two from the new owners down the road about little things...."why does this board squeek?".....and you might discover a hidden bookcase..... or ..........
"Yeah, everything else here is so utterly fascinating that pix of a really nice house might just piss us off."
I agree. Let's try and keep things on the subject the board is about.
Rich Beckman
Another day, another tool.
Didn't read the rest of the posts, but wait 60 days and quit claim deed swap. Or do the realators there have indefinite sale clauses?
The realtor's contract doesn't expire until June of next year. And the clause in the contract extends 90 after. So that means we'd have to live "as is" until next October - Almost a year.
And I wouldn't try to screw the realtor over anyway. I just don't do things like that.Don't steal. The government hates competition
Beautiful house it is.
I assume that you have gone by the courthouse and checked on a clear title, no liens against it and by the tax assessor's office and checked there too that all is clear and how much your taxes will be.
Lucky you to get the house you like where you will love living.:-)
"I assume that you have gone by the courthouse and checked on a clear title, no liens against it and by the tax assessor's office and checked there too that all is clear and how much your taxes will be."
Uhhhmmm.........No. I have no clue how to do all that stuff.Ask me about my vow of silence.
---"I have no clue how to do all that stuff."---
If you are borrowing any money on land or a house, any real estate, the lender will require proof of a clear title to show that there are not any loans/debts registered against it, that the owner of record is who is signing the papers. It may still be in probate, an estate, in dispute or never had been transferred to the people that think they own it clear, especially if they didn't know to register the deed when they acquired the place.
There is also title insurance you can buy, after you are sure that you couldn't find anything, just in case. Some lenders require it even after checking.
To check on the tax records, go to your county's tax assessor and collector's office and just ask. They will show you the record of payment, if the people have been paying promptly (that will tell you if they are ok or you need to watch your back) or if they are in arrears, owing taxes or are disputing the assessed amount.
Don't want to buy a place that you have to pay back taxes for the last several years on. Will be good to know how much that office has appraised the house for tax purposes, so you know what you will be paying on it. The tax offices go by state set rules to appraise and it normally is a little lower than market value.
This is not to scare you but to explain how this part of the process goes. They should check on your house too, or their banker will tell them to.
There are title companies that do that leg work for you, but may not need them in this case if you don't find anything odd. The clerk at the courthouse should help you with this.
That looks like a really nice house and more pictures would be surely appreciated by all here. Don't be shy and share.:-)
There is no real need to do that unless is was a pure cash deal.
Otherwise the bank is going to require a title search and won't accept a DIY one.
And they are going to requie title insurance.
And the title company knows how to do the search efficiently.
Even if I was paying cash I would not attemp this myself. The cost is low and the value high.
You make some good points, Ruby, and you obviously understand this much better than most.
As far as I know all lenders now require title insurance. I think it's become a Fed requirement, at least on banks and S&Ls.
If title insurance is required, there is really no point in going to the courthouse to check for yourself. The title search people at title offices know much more about what to look for and how to clear it up and, at least here, they take care of all that if they are going to issue a policy.
Also, my understanding is that not all states have open information on sales. (Unless it has changed, sale price info is not public in New Mexico)Any jackass can kick down a barn, but it takes a carpenter to build one.
---"If title insurance is required, there is really no point in going to the courthouse to check for yourself."---
Maybe not, but it is a learning experience and very interesting.
After reading thru hundreds of pages of abstracts for this ranch, found one tract of land, a narrow tract missed in the initial survey in the late 1800's, that had been filed on correctly with the state when discovered in 1922 but not recorded locally. Did that to clear title. Lot's of history in these abstracts.
I thought that he may like to know who all owned that house and when. That should be records open to anyone on demand.
Rendered taxes records are open in TX, best I know.
I had them give me an estimate of the taxes we will have to pay on this house we will build. They can do that from a plan, who is building it and knowing the features that will be in it. They have a neat program you can input all the particulars in and come with a figure.
On the sales around here, the big realtor firms put out monthly lists with the details, like percentages, total prices and per square foot, how long they were on the market and other statistics.
You then can go look at those houses to compare with what you have in mind and see how it should be priced for the local market.
That was part of how I came with an approximate idea of what building this house should be worth.
A deed is a legal instrument to convey real property. A quit claim deed is simply that conveyance without any warranty from the seller that they even own the property. A general warranty deed is the instrument by which the seller warrants "guiet enjoyment" of the property to the buyer i.e. no future title problems.
Title insurance is an insurance policy that puts the insurance underwriter in the position of defending any claims against the title and of being liable for those claims if a valid claim is made. Most people think the title insurance protects the buyer and that is true to an extent, but it primarily protects the seller from having to defend the title if a claim to that title is made by another party. It is good for all involved, IMO.
IMO, a quit claim deed would be risky for Boss and probably not acceptable to the other folks.Any jackass can kick down a barn, but it takes a carpenter to build one.
I just read through this thread.
First, it looks like a very nice home to me and I'll be glad to help you achieve it in any way I can. There are so many issues addressed in different ways in the thread that I can't remember them all to answer them in one post, so I'm going to go back through and address each one.
Second, is you want, e-mail me and I'll help that way or I'll give you my phone number and we can talk it over. (I'd be glad to help anyway, but I also just finished building my floors and am clearly in mind of your advice RE the joists. Floors feel good to us and I don't forget favors.)
I apologize for posting this in various posts, but there's a fair amount of material to cover here (some has already been addressed by others) and I'm having some numb hand problems from ding the framing that I thought I'd quit years ago! I can only type for a bit before it starts bugging me.
Any jackass can kick down a barn, but it takes a carpenter to build one.
Thanks for the offer of assistance - I'll keep it in mind.
But I don't want to go too far until we decide for sure that we want the house.Does an angry bride make veiled threats?
Dont be trying to end this as I just got here and I love such stuff as you already know !!!! The fat boy hasnt sung yet. By the way , Im not fat anymore ! HEHE
Tim Mooney
Real estate law varies from state to state. As you know, I'm in Colorado and that's the law I'm familiar with. Over the past few years all states have been moving toward a similar set of laws, but ther are still some big dif's depending on what state you're in. I'm not famaliar with IL law, so you and anyone anywhere else can take this with a big grain of salt. (and of course I'm not an attorney and if you were here I'd be required to recommend that you consult one - blah, blah, blah.)
Here there is a specific form for the trading of real estate, although the trade can be accomplished with standard contract forms.
My recommendation would be to make an offer that includes the price you'd be willing to pay for their property AND the price you'd be willing to accept for yours. If the contract is written correctly it would be not unlike any sales contract i.e. "I'll do this if you'll do that"
I hate to give you bad news (although I expect you've already heard it), but if your spec hasn't sold in nearly three years it is overpriced. Period. There is no other explanation. I'm guessing, but I'll bet that you live in an area which simply has slow sales (like where I live). Going from real estate office to real estate office with the listing will probably get you nowhere (I see it all the time!) I know I'm getting a bit off-track here, but my recommendation is to find the broker with the best reputation and stick with them. If you've worked with someone who told you the bad news (see above) then that's a good indication that they are being honest with you. LOTS of brokers survive off the BS of telling people what they think the person wants to hear, thus delaying the inevitable and ultimately making the situation worse.
Getting back to the main issue: Judging by how long the property has been on the market, any broker worth their salt is going to know that they, like the ones before them, have only a minimal chance of making anyting off your listing. No sale, no commission! Thus, I'd go to the broker and lay the cards on the table, again, I'll do this if you'll do that. The issue of dealing with the broker is best approached before the issue of the trade. Otherwise, if the broker thinks you're set on doing this you'll have little chance of getting a reasonable deal from the broker. Be convinced (and convincing) that you are ready to walk away from this deal if you can't get what works for you. Then stick to it!
I'd want to know how long the other place has been on the market. I'd also want to know how long the average home is on the market and what percentage of the listing price homes are typically selling for. (Here it's not uncommon for a home to be on the market for six months to three years and it's not uncommon for a home to finally sell for A LOT less than the initial list price. The higher the list price, the bigger the eventual discount. This also varies from brokerage to brokerage. The ones that tell you whatever they think you want to here almost always have the greatest reductions from initial listing to actual closing.
Aside to all: I know some of you will think this makes no sense, but if you're looking to list and you talk to several brokers RUN from the ones who suggest the highest listing prices. They are trying to hook you into a listing contract and believe that you'll come down eventually but they'll have the listing so they'll make the commission even though the effect of their strategy is to put off your sale and put you through the trauma of getting unrealistic expectations, only to have them dashed!
If you were here and were my customer, I'd discount both commissions by a third (maybe more) in a minute to get both properies moved. That said, not all brokers think that way. Make it part of your offer to the broker that they can put big sold signs up in front of both places for a few months after closing (other party would have to agree also, of course!) Remind them that $10K now is better than a maybe down the road which might include someone else getting the listings.
Maybe it's different there, but the sale price of two homes has a minimal impact on taxes. Taxes are usually calculated off average sales prices so unless both are drastically higher than normal it won't matter. And even then it won't matter much and wont' matter until at least a couple of years down the road.
Any jackass can kick down a barn, but it takes a carpenter to build one.
call my wife...almost 20 years in real estate full time and she knows you and I are friends regardless of the fact you like Dubya.
I also know another way you can save money.
Let her refer you to the agent..she gets a small coomission for the referal that she'd give back to you minus the tax she'd have to pay on it. Still works for her even though she gives you the commission back cause it add to her total sales of the year which makes her office split better so you both get something out of it.
But besides that, call her!
Be well
andy
My life is my practice!
http://CLIFFORDRENOVATIONS.COM