How much $$ to sell house on unsolicited basis?

[Richard]

Just as a general update, no real estate agents will be involved from a "get the sale" perspective.

What's going to frustrate me (more than a little) is, I suggested to father in law to get the farm appraised, find out about how selling it will affect his taxes (he has essentially zero cost basis in farm)

He is convinced that he can sell it in sections and somehow avoid some kind of tax pain. I tried to tell him, all he's doing is paying the taxes in sections too, rather than all at once.

Seems to me if his basis is effectively zero in the farm, he's going to lose 28% or what ever long term capital gains rate is on the sell of it.

He insists he doesn't need it appraised, doesn't need an attorney and can structure it so the tax bite isn't as bad

/forums/images/graemlins/confused.gif

He said he wants to get all 3 houses to "find a price", add it to the farm price and give them that number.

**presuming the buyer is legit this time**, then this is going to get real interesting.

Personally, I like the idea of telling them 2 million for my house knowing they'll laugh. (as I would too)

I'll let them walk away a couple times though before I worry about bending on my price. After all, it's not my house they are trying to purchase, it's my VACENCY they want.

The house clearly isnt' a million dollar house, so I just gotta convince the wife that the house isn't the issue. The issue is, how much extra do we want to willingly hand it all over.

 

[MadReferee]

I have seen this type of situation before. A bunch of really sharp developers want some land that belongs to a local old school country farmer who thinks he can deal with them himself. In the end the sharp developer with his even sharper lawyers will take advantage of the country farmer.

It looks like your FIL fits the bill of the old school country farmer who thinks he can outsmart the developers. Without an up to date appraisal of your property you have no way of knowing what it's actually worth. The developer will always try to low ball you on price.

You are correct in that Uncle Sam always gets his due but the trick is to keep that at the absolute minimum. Your FIL really needs a real estate accountant. There are ways to roll sale proceeds over into another property and keep the taxes at a minimum.

And finally, always get a lawyer who is representing YOU the seller since the developers will always try to get the better of you.

 

[Richard]

</font><font color="blue" class="small">( And finally, always get a lawyer who is representing YOU the seller since the developers will always try to get the better of you. )</font>

Not to disparage lawyers in general, but the guy who has kept coming here over the years to buy this place, IS a lawyer.

He use to be a tv lawyer trying to drum up new buisness (lawsuits) on his commercials.

The VERY first time they were approached about the land, the "pitch" they got then was the neighboring county sherriff department wanted to buy this farm to build a firing range. Seems the neighboring countys (Knox county for Knoxville) had issues, or lease was up, so they wanted to purchase lakeside land with a retirement community across the lake so they could build a shooting range.

/forums/images/graemlins/confused.gif

Now I wasn't born yesterday, and I'm not the brightest bulb in the pack however, that just REEKS of "bs" to me on virtually ALL fronts.

Personally, I'd tell this dude, you want the farm? fine. 25 million. I'd rather NOT sell it to him just for historical spite lol, but if he/they anted up the 25 big ones, so be it.

As it is, I'm thinking on the 2m side for my little abode, just to be a thorn in his side. Sadly, my actions will affect family members so I'm not so sure how far I can push it.

I don't see myself going unless I have a VERY big /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif on my face and that equates to $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

 

[DUMBDOG]

One thing to remember is that no matter what the appraisal is today, that in five years, the price could double. The land that I purchased last year in ND went from 1400 an acre in 96 to 2750 an acre in 04. Rural acreage, bottomland, four miles from a town of 50,000. The value of our house, here in Florida has doubled since we purchased it in 2000. Was a rural subdivision, four lots to an acre, along a four lane highway, 10 miles from Disney. Now a super walmart three miles away, all sorts of businesses popping up along the road, more subdivsions, 5000 unit apartment complex, you name it, its coming along of talk of making the four lane into a six lane highway.

No matter where you are and there is a possibility of development in the future the land will double in value in five to ten years.

So a appraisal is a must.

 

[wroughtn_harv]

</font><font color="blue" class="small">(

Not to disparage lawyers in general, but the guy who has kept coming here over the years to buy this place, IS a lawyer.

He use to be a tv lawyer trying to drum up new buisness (lawsuits) on his commercials.

The VERY first time they were approached about the land, the "pitch" they got then was the neighboring county sherriff department wanted to buy this farm to build a firing range. Seems the neighboring countys (Knox county for Knoxville) had issues, or lease was up, so they wanted to purchase lakeside land with a retirement community across the lake so they could build a shooting range.

/forums/images/graemlins/confused.gif

Now I wasn't born yesterday, and I'm not the brightest bulb in the pack however, that just REEKS of "bs" to me on virtually ALL fronts.

Personally, I'd tell this dude, you want the farm? fine. 25 million. I'd rather NOT sell it to him just for historical spite lol, but if he/they anted up the 25 big ones, so be it.

As it is, I'm thinking on the 2m side for my little abode, just to be a thorn in his side. Sadly, my actions will affect family members so I'm not so sure how far I can push it.

I don't see myself going unless I have a VERY big /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif /forums/images/graemlins/grin.gif on my face and that equates to $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ )</font>

A couple of things for you to consider Richard.

1. You're dealing with professionals. They've danced with folks just like you under the same circumstances. They know exactly what you will most likely do long before you do and have techniques that work against you.

2. A friend that's a lawyer once explained to me that when one party gets emotional then the other party wins. Lawyers love it when reason leaves the room and emotion fills the vacuum left behind.

I'd get professional help and go with their advice. You're paying for it, might as well use it.

 

[cowboydoc]

Richard,

I was in a similiar situation a couple years ago. I had bought a 260 acre farm 7 years prior. It had an old farm house but had a great feed lot facility. I farmed the ground and in the winter ran the cows on the stocks feeding in the lot. It was a great set-up for me. The feedlot alone today would have probably cost $250,000 but it was older so not valued at much in present day dollars.

To make a long story short I paid $1500/acre when I bought this place. It was on the edge of the current town. Shortly after I bought the place that town became the focus of developers. Fast forward 7 years and I get a tax bill that they've rezoned my land from ag. to residential. Took away my ag exemption and put a value of $10,000 acre on the land. My tax bill was ridiculous. I got a lawyer and we could have fought it and probably won but it would have taken alot. I told them at one meeting there was no way that land was worth that price even at development prices. They had three developers that called me the next day and we settled on a price above the $10k/acre.

In my case it was well worth it as it set me up for whatever I wanted to do. I had never dreamed that land would have brought that money but it did. I would price your ground really high as well as your families and see what happens. They may just pay that million dollars. /forums/images/graemlins/cool.gif

 

[CtRick]

My only advice is to let them make an offer first. You may be surprised by their offer. About 15 years ago some developers approached an uncle of mine to buy his house and 15 acres. The house was a run down shack, and the land was all ledge and wetlands. He had paid 10,000 dollars for it and it was appraised at around 75,000. Well, he and his boys figured they could strike it "rich" by asking for $150,000. They went to a meeting with the developers and before they could say a word the attorney for the developer said "we won't give you a penny more than 4 million dollars" /forums/images/graemlins/shocked.gif. My uncle almost passed out. It turns out that the developers had some friends in City hall and were going to slap up a whole bunch of condos with tax incentives and guaranteed loans (our mayor spent time in prison for such activities). Needless to say, he is now known as the "rich uncle" /forums/images/graemlins/tongue.gif

Rick

 

[bgott]

Someone told me years ago that the first person to name a figure loses. /forums/images/graemlins/grin.gif

 

[jpr62902]

I think the theory is if they accept your first figure, you lose.

 

[bgott]

That,too! /forums/images/graemlins/grin.gif