Dear Michael: Is there such a practice as a realtor buying my property and representing me in the sale of another?
Answer: There are realtors that are also investors that may buy your home and arrange a purchase on a home of your choice. I see no drawbacks when working with an ethical investor on a purchase. Make sure you get a fair and realistic price when selling your current home. A good realtor will provide you the comps for your neighborhood. The best way to protect your interest is to have separate seller representation other then the realtor buying your property.
Dear Michael: I have received three offers on my home but none of them are close to asking. I hate to let my home go at less then what we are asking. My agent wants me to lower the price. By how much should I go down?
Answer: Three offers on your home is always good no matter what type of real estate market we are in! The market is speaking to you. Your home may not be worth what you are asking. I would hate to see all three buyers walk away with no accepted offer… Negotiate until you find common ground. Listen to your agent; your emotions may be getting in the way of a rational decision. Find a way to come to a compromise where your home will move to escrow. There is no way of knowing how long it will be until the next offer comes around.
Dear Michael: The buyer purchasing my home has just had a physical inspection done. The inspector broke a window. I told my agent that I want him or the buyer’s agent to pay for it. Whose responsibility should this fall on?
Answer: Every home inspector should be licensed and bonded. If the inspector breaks an item it would be covered under their insurance. There may be a deductible that the inspector will have to pay but that should not be a concern to you. The responsibility should fall on the buyer’s agent. Inspectors are usually referred by the buyer’s agent and since the inspector does not want to lose a valuable customer he/ she will pay for the broken window. Have your agent discuss the issue with the buyer’s agent and let them work it out. You’ve hired your agent to represent you and he/she should make sure that you are compensated for any broken items that were caused by the inspector’s negligence.
Dear Michael: I am selling my home and will profit $200,000. I am a nonresident alien from Europe. Will I have to pay taxes when I sell my home?
Answer: If you are A nonresident alien, chances are that you will have to pay taxes when you sell your home unless you have diplomatic immunity or have obtained a withholding exemption from the IRS. Escrow is required to withhold 10 percent of the sales price from the profits of the sale, which is sent to the IRS and applied towards any taxes you may owe. On the FIRPTA form (Foreign Investment in Real Property Tax Act) you will need to disclose your residency status so that escrow can determine if taxes will need to be withheld. Please consult with a tax preparer for further evaluation.
Michael Kayem is a Realtor with Re/max estate properties serving Culver City and the Westside since 2001. You can contact Michael with your questions at (310) 390- 3337 or e-mail them to him at: homes@agentmichael.com