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Old 04-28-2014, 03:20 PM
 
Location: Vermont
371 posts, read 397,174 times
Reputation: 755

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If anyone here has been in this situation selling a home in Vermont, I would so much appreciate your suggestions. I am finally selling my home in Windsor, and the closing is scheduled for this Wednesday. As you all know, the property tax rebate isn't decided until July, and it goes with the property. Last year my rebate was $1949 and there isn't any reason to think this year's will be significantly different, as my income remains the same.

The closing attorney wants to have the buyer sign an "agreement" that when the 2015-15 tax bill arrives in July, they will "owe me" the rebate amount. My realtor thinks this is fine and dandy, but I do not. I think the funds should be escrowed until the rebate is decided. The buyer has gotten 100% financing through a USDA loan, has no money for an inspection and I have no idea if they will have the money to reimburse me for the rebate in July. I suspect if they don't have the funds to escrow that amount now, they won't have the money to give me in July. I would have very little recourse at that point to recover the money.

I told my realtor those funds need to be escrowed or I am not closing, but it's been three years trying to sell this house and I just want out. I am losing so much money to begin with. I paid $135k for it, sunk about $40k into it, and the sale is for $124k plus I have to pay them $3800 in closing costs. I am getting about $1500 when it's all said and done.

Am I being unreasonable? Should I just forget the probable $2k in rebate and be glad to walk away from the house? I feel so used. The realtor sure isn't going to trust anyone to get her commission. Does anyone have any thoughts? Been through this gray area? There is a worksheet on the VT tax website where you can calculate the rebate, but because it is not a "sure thing", the attorney can't include it as a credit to me at closing. I am fine with that, just want them to escrow the amount from last year until we get the notification of the exact amount from the state.
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Old 04-28-2014, 03:52 PM
 
Location: Vermont
5,439 posts, read 14,784,739 times
Reputation: 2630
Does this help?

Quote:
Selling the Property After April 1, 2014 If you filed the Form HS-122, but sold the property after April 1, 2014, the property tax adjustment amount is allocated to the seller upon closing unless the parties agree otherwise. The property tax adjustment is your payment on the 2014 property taxes and needs to be considered at the closing when pro-rating the property taxes.
https://secure.vermont.gov/hd/instructions_popup.html
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Old 04-28-2014, 04:34 PM
 
Location: Vermont
371 posts, read 397,174 times
Reputation: 755
Yes, thanks, I saw that and they consider the rebate in the taxes I paid in 2014 up until closing. But that doesn't do anything for the rebate for the next year (2014-2015). It's a screwy system if you sell between April 1 and July. I just talked to my son and he said just forget about the $2k loss and move on. I guess he is right. I sure don't want to be a landlord in Windsor! I just am so strapped for cash, a $2k loss to me is like $20k to anyone else. But I feel better for pushing back on the realtor and attorney. But at the end of the day, if the buyer doesn't have the funds, then I guess there is no point in pursuing it. I think the realtor and attorney don't want to admit that escrow would mean that the buyer would need to bring money to closing. They know he doesn't have it. They will fit right in in Windsor!
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Old 04-28-2014, 04:58 PM
 
Location: in a cabin overlooking the mountains
3,079 posts, read 3,722,634 times
Reputation: 2253
That is very weird. Normally when you close, that is IT. There isn't any owing money to anyone, no unfinished business, no repairs that the seller started and won't finish until the buyer takes possession but the seller will still pay yada yada. Don't you have your own attorney for this?
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Old 04-28-2014, 05:09 PM
 
Location: Vermont
371 posts, read 397,174 times
Reputation: 755
Just the real estate attorney, who won't be back until tomorrow. I hired an agent, who hired the attorney, and now the closing is being handled by this attorney who represents me. I have sold property before and never ran into something like this. My guess is the realtor knows the buyer can't come up with the money, so she isn't pushing for escrow. I will know a little more tomorrow, but I think the rebate is a lost cause at this point.
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Old 04-28-2014, 05:11 PM
 
35,324 posts, read 25,191,392 times
Reputation: 32414
If you want out of this place and you haven't been able to sell it for three years, there is no way that I'd let a couple of thousand dollars hold things up.
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Old 04-28-2014, 05:23 PM
 
Location: Vermont
371 posts, read 397,174 times
Reputation: 755
Quote:
Originally Posted by timberline742 View Post
If you want out of this place and you haven't been able to sell it for three years, there is no way that I'd let a couple of thousand dollars hold things up.
Exactly what my son said. I think I was just venting with my post. It's like how much more can they beat me before I said "enough!". But of course I am in no position to insist. It just galls me so. I advertised this house as an FSBO at $122k, no interest. I list it with an agent, and have a showing the same day, and an offer in 4 days at $124k. To get that offer, I print out all the stuff I have done to the house and give it to the buyer when he shows up with his agent to see the house (my realtor couldn't make it). My agent had the same information but never shared it with the buyer's agent. I feel like the agents get their money Wednesday, for doing very little, and I get the shaft. Oh well, that's the way it goes. Good riddance to a house in Windsor. Loved my house, despised the neighborhood and what it has turned into.
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Old 04-28-2014, 08:08 PM
 
Location: in a cabin overlooking the mountains
3,079 posts, read 3,722,634 times
Reputation: 2253
Sometimes it is worth having a professional. Who knows what you would have sold it for on FSBO. Be glad it's gone and if you only "lose" $2k you are ahead of the game.
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Old 04-29-2014, 03:54 AM
 
Location: Vermont
371 posts, read 397,174 times
Reputation: 755
Quote:
Originally Posted by FrugalYankee View Post
Sometimes it is worth having a professional. Who knows what you would have sold it for on FSBO. Be glad it's gone and if you only "lose" $2k you are ahead of the game.
I guess you are right. What's another $2k after losing so much of the home's value. I had friends warn me about buying in Windsor (for years I lived across the river in Plainfield, NH) but I didn't listen. It was the only house I could afford in all the Upper Valley at the time. What's that saying in real estate? Location, location, location.
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Old 04-29-2014, 05:14 AM
 
35,324 posts, read 25,191,392 times
Reputation: 32414
What happened to Windsor?
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