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Housing In Usa

Discussion in 'General Discussions' started by kveena, Nov 23, 2019.

  1. kveena

    kveena Platinum IL'ite

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    Hi friends,
    Is it legally possible for a seller to sell their house for a much lower price compared to the current market rate ? Do we have policies to prevent this from happening?
     
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  2. Rihana

    Rihana IL Hall of Fame

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    Legally possible? Yes. The seller could opt to sell at a lower price for many reasons. And she can legally do so.

    If the seller is trying to get rid of an under-water mortage by tricking the system, there are many safeguards in place. A few listed here: Can I Sell My House for Less Than Market Value?

    If a buyer finds a house listed at a remarkably low price, better to use a competent real estate agent to do all the due diligence.

    I don't know much... If taking real estate decisions based on inputs here, please ignore mine. : )
     
  3. kveena

    kveena Platinum IL'ite

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    Thank you so much for the reply.It really is helpful.
     
  4. Amica

    Amica IL Hall of Fame

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    Possible? Yes, of course! People sell their homes/cars/valuables to loved ones for a dollar all the time. The sale is a formality that allows them to transfer title from one to the other. Property taxes will be levied on the appraised value of the house.

    Banks often auction foreclosed homes as is for whatever they can get.

    If you're selling at a low price because there's something wrong with the house, full disclosure laws would apply.
    .
     
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  5. kveena

    kveena Platinum IL'ite

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    I heard that if one is selling their house at a low price to a loved one,the seller needs to file a tax return (if it’s more than 15,000) but need not pay the tax unless the gift exceeds some 5.43M life time exception. Is this true?
     
  6. Amulet

    Amulet Platinum IL'ite

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    Yes; that is true. You can see that in the IRS website.
     
  7. Amulet

    Amulet Platinum IL'ite

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  8. kveena

    kveena Platinum IL'ite

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    Thank you so much. The life time exception is linked to the total amount gifted to n number of people living only in USA or any part of the world? This is not clear. And if the seller is filing taxes jointly with his/her spouse then the life time exception is almost 11 million right even if the seller is the sole owner of the house?
     
    Last edited: Nov 23, 2019

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