Sellers Superior Options

Home Pro, Inc.. - Real Estate Appraisers

Home Pro, Inc. has created an option program for sellers of real property in Wayne and Oakland County.

Owners can sell their property and receive the total cash value of existing equity undepleted by transaction costs, brokerage commission, title/escrow fees, and discount points.

In many distressed situations, the seller does not have to give up his home and may live there.
In turn-around properties, our option program may allow the seller to qualify for the capital gains tax rate. For example: A seller has recently purchased a house as a "handy man special" for a bargain price and proceeds with fix up. If re-sale occurs before he has owned the property one year and a day profit will be taxed as ordinary income. Instead of selling, owner utilizes our program and options the property. On the 366th day, the option is exercised and a sale is consummated. The profit is taxed as long term gain.

Options can be great estate planning devices by dividing benefits to different parties. In cases where government agencies impose restrictions and limitations on sales, options can by-pass red tape.

Property being optioned is a capital asset and is not taxed on receipt of option payments. Tax is deferred until the option is exercised or expires.

If real estate options are used correctly capital gains in high income years can be moved to low income years.

When sale of the property is completed (option is exercised), option payments become a part of sale proceeds and serve to increase the capital gain or reduce capital loss. If the option expires, retained earnings are taxed as ordinary income.

Options may avoid "due on sale" clauses in many mortgages and allow the seller to retain tax benefits.

Employing our "rolling option", when selling vacant land to developers, allows the owner to get a higher price for his property.

Courts are more likely to enforce the time provisions in options than standard sales contracts. Forfeiture is clearly defined at date of option inception and expiration.

For more information on our option program call us : 248-348-3528
click here to email us calvinj@hpiappraisers.com