Posted by Ed_IL on February 11, 2000 at 16:07:48:
Took over property subject to for 118K
Fixed up some for total out of pocket of 125K
Buyer toying with a cash price of 140K
15K left over maybe
If taxes and closing cost are taken out, then it dwindles the left over below 10K.
Now as I recently understood it the Taxes for 1999 are actually accumulated and paid in 2000 through an escrow account. So if my buyer pays all cash in March let’s say, do I have to prorate taxes for the 2 months gone by in 2000 plus the taxes for the 12 months in 1999? Taxes are $3200/yr plus 2 more months and I dont want to lose it if I dont have to. Should I include taxes as part of my acceptable price or is there some way that is customary when selling to have the buyer just take over paying prop taxes? Or am I missing something here?
Any suggestions are appreciated as always.
P.S. Cant wait til the convention!