No matter what the task or goal, stay focused and should you feel that new representation is in order. Do so in writing as well as promptly as possible to avoid any complications from the agreement you signed. Just 'cause someone has their license to sell homes doesn't mean they are good at what they do. Ask questions, get it in writing, make sure your getting what you want-"Steering" is illegal. Don't let a sales rep guide you-YOU guide them on where you want to live.
Quitting is the easy part. What comes after is far worse than the pain you were in when you decided to quit. When you quit you are looking for the immediate gratification of the pain stopping, looking for the feeling that you are done and don’t need to keep going on; and if feels good! It feels better than anything else; for about 30 min, but what comes next is far worse. Your brain goes into overdrive. The questions start to come, what could I have done differently, or asked for help on, or just had some more patience. See quitting is often a permanent solution to a temporary problem. The mind or body is saying that you don’t deserve this, or that it is too hard, or why does this only happen to me. When in fact, it happens to everyone. The comfort zone is a strange thing. It allows you to exist and doesn’t want you to push further. When people get out of their comfort zone the first instinct is to quit; they say this is too hard. When in fact they haven’t figured out an alternative; many times this is just the beginning on the path to greatness.
Feel free to review my LinkedIn profile: https://www.linkedin.com/in/danieldelpriora/ as I am not a fan of broadcasting my sales details on the internet...which will be the topic of my next blog.
HAVE THE BEST DAY EVER!!!
Sometimes, as people approach the inevitable, they start trying to get their things "in order". They may even have a will, but they decide to transfer title to real estate prior to their death which could be an unnecessary expense for the would-be heir.
Generally, when property is passed through direction of a will, the heir will receive a stepped-up basis which means that the fair market value of the property at the time of death becomes the cost basis for the heir. If the property were sold for that fair market value, there would be no gain and no capital gains tax due.
However, if the property is gifted prior to death of the donor, along with the title to the property comes the cost basis of the property. The transfer of title does not trigger the capital gains tax but when the property is sold, the gain is calculated by subtracting the basis from the sales price leaving a capital gain subject to tax. In other words, the person receiving the gift does not get the stepped-up basis.
There certainly can be advantages to transferring the property prior to death. It completes the transfer without having to wait for the death and bypasses the probate process that might be required to settle the will. Another advantage to the donor may be to remove the property from the owner's name which could lower the taxable estate.
Some owners may transfer title prior to death to qualify for Medicaid. The value of the asset may make them ineligible. It may trigger a Medicaid Transfer Penalty when the gift is made within five years and the basis of the property is less than fair market value.
Once a property is deeded to someone, the donor loses control of the asset and it cannot be reversed. Depending on the value of the estate, there could be gift or estate tax implications. As mentioned earlier, it may have capital gain tax consequences for the donor when they dispose of the property.
If the person receiving the gift has creditors or judgements, the gift becomes an asset subject to those creditors or judgements.
Even though the mechanics of transferring title to a property is simple, there are many things to consider for both the person giving the property and the one receiving it. Consult an attorney and tax professional to determine the best informed decision available. There could be other alternatives that would better serve your situation.