How fast/slow will it sell?

[cyn7cyn]

Originally Posted by lastdash

congrats Peter on the sale of your home , sounds great !


However...I am confused about this post, why would a home NOT appraise?

I'm going to take a stab at your question.(been following the real estate forum) We have relators that will expound or correct me if I'm wrong. The appraisal value is important because the buyers loan is dependent upon the appraisal value. If a person sales their home for more then the appraisal amount the bank will not loan the buyer more then what the house is worth according to a licensed appraiser. Only all cash offers are immune to this scrutiny.

[wheelsup]

You can purchase a house above appraised value but you have to bring enough cash to get a loan for below their threshold.

Example. $250k appraised value, $100k in cash, the bank doesn't care if you paid $260k, they still own the asset worth $250k with a $160k lien on it. Win-win if you default, hell they probably hope you do.

[BoBromhal]

The bank only gets what they're owed; the seller gets the rest.

There were certainly a few head-shaking foreclosures in 09-12 where an owner had plenty of (perceived) equity yet never attempted to sell the house.

[VickiR]

Originally Posted by lastdash

congrats Peter on the sale of your home , sounds great !


However...I am confused about this post, why would a home NOT appraise?

Our housing market is currently "on fire". We have low inventory. With so many buyers, a home that is in a desirable location may get many buyers.

If there are multiple offers, home is listed at what the comps tell us is the correct market value, but a buyer that really wants the home agrees to pay $5,000 more than the listed price, the home may not appraise for that higher amount.

Sometimes appraisers will ask if there were multiple offers. Sometimes appraisers go by the previous sales and don't take into account that there were multiple offers.

[lastdash]

ok, thanks to all.
I was thinking along other lines I suppose, you get a home appraised before you sell it and that's it....it's appraised !

[VickiR]

Originally Posted by lastdash

ok, thanks to all.
I was thinking along other lines I suppose, you get a home appraised before you sell it and that's it....it's appraised !

You, the homeowner, CAN get the home appraised before you sell it. Cost is about $400.

However, when buyer gets a loan, that lender will require a new appraisal that buyer will pay for.

And...the appraisal is only good for that day. Once another comp sells, market value can change.

When most sellers contact a Realtor, that Realtor does a Market Analysis and comes up with the appropriate market value.

[lastdash]

ok, thank you VickiR !


Now, a question for you or anyone else that may can answer..when you sell a home in NC , what are the tax requirements in NC on the seller for that income ?

[BoBromhal]

It depends. Ask your tax professional.

For almost every case (though not all), unless you own the home < 2 years, or moved away more than 3 years ago, you pay no tax on the sale of your home.

For almost every piece of residential property, you pay a tax of $2/$1000 of sale price. Sell a house for $240k? That's $480 in revenue stamps.

[lastdash]

ok, thanks. I understand about the revenue stamps but what about income tax, capital gains maybe..none of those taxes apply ? ( this is for someone who has owned their place for over 20 years )
I also thought I saw somewhere where home sales had a special real estate sales tax of some kind right off the bat...not sure what that was all about, been a few years ago when I heard about that.

[adamwmcknight]

You may be referring to the ability to avoid capital gains if you have lived in the home for 2 of the previous 5 years. You can avoid the capital gains on up to 250k per person in that event. That would be 500k for a married couple filing jointly. To be clear, I am referring to federal tax