Nonresident Property Owner Withholding

Property managers will soon be collecting taxes on behalf of California against non residents.

This should create some very interesting issues.



Nonresident Property Owner Withholding: "Q 1. Who is a California nonresident property owner subject to withholding?

A Nonresident owners include the following:

. Individuals who reside outside of California,
. Corporations, Partnerships and LLCs who do not have a permanent place of business in California or who are not qualified by the Secretary of State to do business in California, or
. Estates and trusts who are nonresidents of California.

Q 2. Who is exempt from withholding?

A Those persons or entities exempt from withholding include the following:

. California residents,
. Corporations, Partnerships and LLCs qualified to business in California or who have a permanent place of business in California,
. Estates where the deceased was a California resident at the time of death,
. Nonresidents when the payments do not exceed $1,500 in a calendar year,
. Tax exempt organizations,
. California nongrantor trusts,
. A nonresident owner who has received either a Waiver or Reduced Withholding Exemption from the FTB.

NOTE: One fairly simple method for nonresident owners to be exempt from withholding is for them to form a California Corporation, Partnership, or LLC, or to have their foreign (out-of-state) Corporation, Partnership, or LLC qualified to do business in California with the Secretary of State. Depending on the income generated by the rental property, the cost of forming and maintaining such an entity may be justified to avoid withholding."

Luxury-Home Owners in U.S. Use ‘Short Sales’ as Defaults Rise - Bloomberg.com

Luxury-Home Owners in U.S. Use ‘Short Sales’ as Defaults Rise - Bloomberg.com: "Upside Down Mortgages

“You are just starting to see the tip of the iceberg with luxury short sales,” said Adrian Heyman, owner of Property Advisors, a real estate broker in Scottsdale, Arizona. “A lot of wealthy people are upside down in their mortgages and they just can’t afford the second or third vacation home anymore.”

There are 114,000 home loans of more than $1 million, according to First American. About a quarter of all mortgaged homes in the U.S. have loan balances bigger than their current value, known as being upside down or underwater, the data company said."

WE are pretty sure we are about see a lot more short sales in Rancho Sante Fe and Mammoth Mountain.

Rancho Sante Fe short sales

Mammoth Mountain Short Sales

More homes are poised to hit the market -- latimes.com

More homes are poised to hit the market -- latimes.com: "First American estimated that the inventory not yet on the market constituted a 3.3-month supply at the end of the third quarter, up from 2.4 months a year earlier. The number of homes for sale was 3.8 million, a 7.8-month supply at the current sales pace, First American said. That's down from 4.7 million, or a 10.1-month supply, a year earlier.

Stuart Gabriel, director of UCLA's Ziman Center for Real Estate, laid out a troubling scenario that could play out if shadow properties do hit the market early next year: a contagion effect in which waves of foreclosures beget more, taking down the values of entire neighborhoods. Concern over such an outcome could cause sellers and lenders to act more cautiously, slowing the pace at which they take back troubled properties, he said.

'Some are strategically holding property off the market and are only putting it back on in dribs and drabs,' he said. 'They're playing this interesting game where, on one hand, they need to liquidate these properties, but they can't create a downward implosion in prices that will come back and bite them even harder.'"

New drafts of real etate purchase and sale agreements

CAR is revising it Real Estate purchase and sale agreements.
The changes are worth reading.
It is amazing how many ways there are to get of the contracts.
But, I do not blame CAR for that... we were all told in contracts class in law school
there has to be an element of good faith between the parties in all contracts.

Note some of the changes were adopted to allow for Short Sales.




New drafts of RPA & related forms are available: "New drafts of RPA & related forms are available
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Your input is invaluable to ensuring the forms relevance. Comments ranging from formatting to more substantive suggestions are welcome! Please click on the links below to review the respective forms and e-mail your comments to carforms@car.org

. Residential Purchase Agreement (RPA Draft 12-09)
. Table of Contents-Residential Purchase Agreement (TOC Draft 12-09)
. FHA or VA Notice and Addendum (FVA Draft 12-09)
. Wood Destroying Pest Inspection and Allocation of Cost Addendum (WPA Draft 12-09)"

San Diego home for sale

 

As of todays date we are accepting offers on this home located at 4343 Ohio St. Number 3. San Diego CA 92104.


San Diego Real Estate for sale.

Pricing Carlsbad Real Estate

 



This is an image of the National Association of Realtors Pricing pyramid.

What it means is that as you go up in price the probablity of find a buyer goes down.

As you become overpriced your buyer pool shrinks. Perhaps someone buying a house so that a relative can live next door will over pay.... but if the person is not buying with a large slug of cash the buyers lender will not let them pay much more than their appraisal anyway.

As you go under the fair market value you will set the investor pool in action so you will get offers relatively quickly.

If you go 20% below value you will probably get an offer within 24 hours.

Our experience selling our own investments and selling dozens of short sales proved to us that if you price your property a little low you have a very good chance of getting multiple offers. Frequently, we even have offers pay through the our slighly low list price to Fair market value or more.

I can not tell you how many times I had to tell Realtors in my office to the lower the price of their short sales.
I said look there are thousands of people on the internet with IDX alerts. When you price gets below their fair market value price - the phones start ringing off the hook. At first they did not believe me.

Later they just said -- lowered the price - phones started ringing.

Getting offers is all about price and showings.

If you do not care about your net lower the price.

If you care about your net - make sure your house shows well and offer buyers agent a higher than typical commission.... and let them know about it.

We will discuss that pricing strategy in the future.


Carlsbad and San Diego real estate prices.

how to sell a short sale properly