Home Buyer Success Story: A 1031 Exchange
This beautiful home just closed and we couldn’t be more excited for our buyer. This one is proof that it pays off to truly understand the seller’s motivations when making an offer. And sometimes that aligns perfectly with the buyer’s needs too.
The seller wanted to sell his home but needed some time to figure out his next move. He thought he wanted a “rent-back” and the listing agent even shared that in the agent’s remarks online. A rent-back agreement is a rental or lease agreement between the home buyer and seller that allows the seller to continue to live in the house after the closing date in exchange for rental payments.
However, through numerous conversations and gathering information, we were able to understand the seller’s underlying goal and find an agreeable solution which made our client’s offer stand out among the others.
Our client was searching for a 1031 exchange replacement property, but he still needed to sell his original investment property first. A 1031 exchange is a real estate investing tool that allows investors to swap out an investment property for another and defer capital gains or losses or capital gains tax that you otherwise would have to pay at the time of sale.
The stars aligned and rather than going through a more expensive and arduous reverse 1031 exchange, the buyer made a great offer with an extra long escrow to accommodate both his needs to sell the other home and the seller’s need for a little extra time to figure out what was next while being confident that his home would be sold.
Slowing down, communicating clearly, asking questions, and cooperating with the other side can lead to a beautiful thing. All in, it was about 4.5 months from contract to close but both parties came out extremely happy and achieved their real estate goals. Cheers to the new owner of this gorgeous remodeled home in downtown SLO!
Here’s what the client said about working with us:
“Stacey helped me with a 1031 exchange, moving from the Bay Area to San Luis Obispo. Her understanding of both markets is unique and invaluable for this type of move. We found a property before I was able to put my Bay Area rental on the market. We explored a reverse 1031 exchange. Stacey has excellent financing connections in SLO. In the end, Stacey helped me put together a creative offer that met the seller’s needs and my need for an extended escrow. I was impressed by Stacey’s creativity, negotiating skills, and ability to quickly get a sense of a property’s potential.”
-H.M.
We’d love to help you love live on the Central Coast. Contact us to see how we can help you make that happen.
