You're watching...
Prudential Douglas Elliman Vice Chairman Dolly Lenz on homeowners rushing to sell before the tax hikes of the potential fiscal cliff.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Many owners trying to unload their properties this year ahead of the fiscal -- some buyers have been able to get steep discounts as a result.
My next guest says she -- deals being fast -- like never before.
Dolly -- joins me now she's vice president of Prudential Douglas element -- always had great to have you on the show.
What's going on here what is it about the fiscal clip.
That is making people act so quickly -- if you think about it some.
Sellers.
Have purchase prices that they paid 25 years ago.
The basis in the property they purchased.
Is 75000.
A 300000.
And they're selling for 6812.
Million.
Think about that -- If they holy -- -- big go over the fiscal cliff of the bush era tax cuts are over and the taxes go back imagine the difference in the tax rate.
It's humongous.
All right well -- we talk about people rushing for the year read what other kinds of impacts of that happening.
It it's just making everybody scramble on every every part of everybody -- to the title companies the banks.
Everybody trying to get ahead of everybody else to get the closing schedules.
Getting all the people work in order.
It with a heavily using it -- every attorney across the country and every real estate broker like you riding.
-- meet this deadline running it I'm talk about being on the phone at 2 AM at 3 AM.
All night and my counterparts in Los Angeles are telling me.
Very very same thing yeah -- -- -- well you know I know a lot of people out there are thinking about selling.
They're they're wondering when they can sell and we're seeing this market try to pick up its head here and obviously being helped now by the fiscal cliff.
But you can't -- these deals candy railroad cell phone -- I've seen it happen I've been involved when it does.
One of the big things that can -- rail of course is if your financing falls through about 40% of the time.
That's what.
What -- taking these deals apart.
Financing as a number one cause taken the deals apart in financing could mean an appraisal.
Right because -- bank wants to see the property appraised.
For that can be a -- a total headache and mostly appraisers are coming in under.
Where they should be right so that's a nightmare financing is number one above all the others because lots of ways to derail.
Attorneys not available title problem title problems and it's had a problem now in -- house.
Where.
Last update was 1928.
-- -- that you don't I think it's amazing home inspections now that's some saying.
There was a time when the market was go go and people would sign away their right to a home -- know about buying it without -- inspection and we -- that's a big mistake.
But this is also something that can blow up -- deal if it's somebody finds something they just can't get fixed -- well what they should be doing is looking at well how much is it really -- what what can to get fixed.
Seven dollar limit is a 5000 is a 101007.
Limit you can both agree on.
And just worry about it later get that -- close I get the deal closed -- get over the buyer's remorse move on.
What do you see -- -- so mr.
Morse.
This a lot of -- -- what's coming up at okay I have people you know that given their homes 25 years now like yeah I know I'm gonna get this 23 million dollar.
Big deal bonus here but you know what I -- my home I -- Central Park.
One really -- up you don't know what did I have to keep.
Moving them along nominal you really -- -- it but it did a whole thing -- a lot I think that's really true yeah I could see that myself.
Quickly what do you see for 2013 and real thing not just in new York and across the country is the big boom -- -- small moon.
Does it creek along like it has been in the -- I mean my own -- For the most part is that it creeks along.
It doesn't get to be a real boom unless we have some fiscal policy to see changes.
You know employment gets addressed things like that which still hasn't been done.
But otherwise it's gonna creep along you know what I -- -- about you Dolly is that you always say.
What you think you don't -- -- vetoed you don't try to make it look better than it is you tell us what you really think and I appreciate that thanks for coming on in have a great holiday we thank you to thank you.
