Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (18) | Ignore Thread Prev | Next
Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121478  
Subject: Re: Deemed Sale of Personal Residence Date: 2/21/2001 8:31 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
ldybrd: "Boy, I was excited about Roy's article since I know the value of my home has increased greatly in the past 10 years. Now, after the posts of the day, I think I'm just confused.

Anyhow, I do have a nagging question if someone could clue me in. Just where and how do I come up with the figure for the "fair market value" of my home anyhow? And what sort of documentation would be needed IF future articles/research point towards actually being able to make a "deemed" sale of my home?"


I suspect that an appraisal from an appraiser that routinely appraises for mortage lenders that sell their mortgages on the secondary market would probably be the "best" evidence. I believe that these are generally running in the neighborhood of $300 +/- $50.

You might also try a Comparative Market Analysis prepared by an experienced real estate broker familiar with the neighborhood. I believe that they routinely prepare these when trying to win a listing; my conscience would require me to acknowledge (but probably after the CMA was delivered to me) that I did not intend to list and to offer some compensation $100-$200 range.

Last, depending upon state law and local custom, you might use assessed value for ad valorem tax purposes. By quirk of fate, Texas law requires taxing districts to assess value at FMV every year as of January 1st. The process will take at least several months and can last well into October. I have disincentive to accept a hugely overvalued number because that means more taxes for to pay.

Not all states have similar requirements. Prop. 13 certainly affects California assessments numbers, for example.

If the consensus view WRT this issue changes, I intend to follow the third route. I am sitting on gains (but nowhere near 500k [total value of my house is not even near that number], but do not expect rocket-like appreciation to ever make 500k an issue. In addition, Texas is a community property estate, so entire basis of house will be stepped-up if one of us dies and we still own this house (under current law). I would not mind a good result, but I will not lose any sleep over it.

Just my $0.02. Regards, JAFO
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (18) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

Implications of the Ballad of Ted Plotz
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement