Blog :: 02-2013

Jackpot of Fabulous Prizes

Negotiating and personal property with buying real estate in Barre

But wait, there's more!

By Ray Mikus

In addition to an actual house, when you buy real estate in the Montpelier/Barre area, you may be interested in some additional personal property. Personal property are items such as appliances, or furniture that may or may not be included in the transaction.

Many items of personal property are commonly included (at no monetary value) in the sale of real estate.

Sometimes other items come up during negotiations. Common examples are lawnmowers, snowblowers, tools, and yard equipment (including tractors). I've even seen a buyer ask for a canoe that was being stored in the garage.

Everything's open to negotiation when you're buying a house in the Montpelier/Barre area. The glitch is that if a lender feels as if the value of the personal property is, well, some real value. Banks make loans collateralized on real estate. So if the canoe comes with the property, it's sometimes better to make a separate purchase between the buyer and the seller.

On occasion, sellers are happy to get rid of things they won't need anymore. A few hundred dollars might set up a new homeowner with dining room furniture, bedframes, televisions, or more. Just make sure that everything is in writing, everything is on the level, and that the jackpot of fabulous prizes doesn't get to be more of an important factor than the real estate itself.

Tax Time and Closing Statement

Real Estate Tax timeTax Time (YAY!) and Your Settlement Statement

If you bought or sold real estate during the 2012 calendar year, you may be able to deduct some of the closing costs for tax purposes. You may also have a gain or a loss to declare. Either way, you'll need the HUD-1 settlement statement.  Of course, you'll want to talk with your tax adviser for the specifics.

In order to deduct any closing costs and expenses, you'll need a copy of the HUD-1 settlement statement. That's the closing statement that looks like a long ledger. One side showed the buyer's closing costs and sources of funds. The other side showed the seller's closing costs and funds received.

For accountants and closing attorneys, it's super fun. For most people, it's interesting at best, and dreary at worst.

You took a copy of it home after the closing, although it's not uncommon for those documents to get filed and then misplaced during the ensuing move.

So, if you need a copy, you can get one from your Realtor's office or from your closing attorney. If you bought or sold property using Heney Realtors, you can call either the Montpelier or the Barre office. You can also email your agent.

If it helps make things easier for you, you can also shoot me a quick email, and I'll get a copy of your settlement statement to you.

By Ray Mikus, Heney Realtors

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