Real Estate Discussion Forum (2024)

Last week I had someone who was referred to me because they had listed their parent's estate apartment without a broker and fairly immediately got a full asking price offer of $800,000. They wanted me to give them a Broker's Opinion of Value letter so they had something for their files. Rather than do that I presented the situation to a few buyers I'm working with. There's now a contract out at $865,000.

Don't bother responding to this. A number of you have decided that you don't want to use a broker and don't want to be confused by facts

Many years ago I have sold on my own in certain situations. Certain legal issues arose, and I had to do battle on my own. Turned out okay, but was a great source of anxiety.

However, recently, in today’s more complex environment, I enjoy the luxury of having a really good broker perform their magic.

And, when I say “magic,” I mean just that. Staging the home, use of skilled photography, marketing to the hungriest customer that was convinced that paying well above the market price was a steal, even though the far superior house next door sold for far less.

A good broker is no different than a master electrician, plumber, or any other tradesman. You wouldn’t want to risk performing those skills as a lay person.

value is determined the day it is transferred to you. Market value at that time

Correct-
How would I determine market value-
Is there a website or other means which would allow me to look at other similar properties sold in the area?

zillow.com and realtor.com only have estimates and comps for recent sales.

Maybe hire a local appraiser? It will be a hassle to find one and money but will generate a document that can be backed up.

I always thought it was value of the property on the date of death.

One and the same?

so far, no luck on finding a source of this information

Nope. For example: say you are the beneficiary of some stock held by a broker. You (or the executor if in a will) sends the broker the death certificate say 2 months after the death (and if via a will the appropriate legal documentation which may have taken many, many months thru probate) The broker transfers the stock to you then and also determines the value of the stock at the time of death. Transfer date and date of death are not the same.

With real estate not so simple, although if via a will maybe the executor determines the value as he/she gets a % cut of the estate.

Ps. Genius is not a legal type but went thru the experience couple years ago.

As long as you lived in the property as your primary residence for 24 months within the five years before the home's sale, you can qualify for the capital gains tax exemption.
It is 250K for single and 500K for married.

Just watched a show hosted by Consuelo Mack (PBS)

Her guest was Jeffrey Kolitch and subject was Commercial Real Estate Opportunities. He is VP of an group of investment funds (the Baron funds) and manager of one (Barron Real Estate Fund) that started in 2009 with an average annual return to date of 14%. (this return, of course, will absolutely be typical of future returns — until it isn’t).

Anyway, he sets out his thinking of why high quality commercial real estate is due to greatly exceed even his past returns in the coming couple of years.

He claims the crisis in commercial real estate is because of low quality B and C level office real estate and is overblown by the press focusing on such.

For example, he says industrial real estate has 95% occupancy on rents are that locked in but due to expire in next few years but now at 50% below market. Interests rates will eventually go and these leases will expire and this category has been much less subject to market swings.

He goes over other investments in healthcare, independent and assisted living and hotels.

@Slinky Bender your comments?