Seller wants to close 2014 for tax resons

Tax, SDIRAs & Cost Segregation
11yFollow

Seller wants to close 2014 for tax resons

Jaago Viitkin
Union City, NJ · Member since 2014 · 131 posts · 32 votes

Hi 

Seller is pushing me to close in 2014 saying he has tax reasons.

Could somebody explain please, what could be behind it?

Or is the seller just pushing me to close fast and trying to hide something?

thank you

0Reply
14 views

5 Replies

Jump to latestLatest
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    11y

    Nope it's common to want to close before years end.

    Is the seller doing a 1031 exchange??

    If the end of the year comes and goes and the tax urgency goes away the seller might up their price or decide to not sell anymore all together.

    Is this property under contract and you have conducted due diligence and are getting close to closing OR are you just talking to the seller about putting in an offer??

    Unless you have all cash and are waiving any inspections it would be impossible. Even then it's not likely. Most title, attorney, inspection people are taking off now until the new year. They are pushing to close out deals 90% finished before years end. Anything new is pushed to next year.

    Podcast Guest on Show #47
    NNN Invest53 Reviews
    WebsiteView Page
    0Reply
  • Guy Gimenez
    Investor · Corpus Christi, TX · Member since 2012 · 2k+ posts · 1k+ votes
    11y

    Did you ask the seller?  Just curious since no one here has any idea, but could only speculate on the conversation you had with the seller.  There could be an endless number of scenarios as to why the sellers wants a 2014 close but the only way to know for sure is to ask. 

    0Reply
  • Jaago Viitkin
    OP
    Union City, NJ · Member since 2014 · 131 posts · 32 votes
    11y

    @Joel Owen

    I am under contract, but some things came up, we had some mold in the basement etc.

    I think there is no 1031, the guys just wants to move to Florida.

    @Guy Gimenez

    It is very hard to talk to the guy. He only let's his broker and lawyer handle the case.

    They do not give out to many reasons.

    THANK YOU ALL FOR ANSWERS

    0Reply
  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    11y

    Understandable.  He probably anticipates a higher tax rate for this year than he'll have for next year, due to his own income.

    0Reply
  • Bryan L.
    Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
    11y

    He may have losses or other write-offs or credits that can be used against the gain in this year, but maybe not next year.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free