Talk Irvine

General => Real Estate => Irvine Real Estate => Topic started by: USCTrojanCPA on March 05, 2022, 10:04:29 PM

Title: New Listing - Varenna Plan 2 in The Groves @ Orchard Hills (52 English Saddle)
Post by: USCTrojanCPA on March 05, 2022, 10:04:29 PM
On Monday morning I listed a 2-year old Varenna Plan 2 single family residence in The Groves @ Orchard Hills on MLS as a Coming Soon listing and it went Active this morning on Saturday. The home was built in 2020 and features 4 bedrooms, 3.5 bathrooms, optional conservatory room downstairs, and an upstairs loft along with 2,719sf of living space. The home is listed for sale at $2,000,000 and expected to sell fast.

PM or email me if you are interested in seeing the home. Showings will start on tomorrow on Sunday (March 6th) at 11am. I'll be hosting open houses next weekend (Saturday & Sunday March 12th and 13th) from 1-4pm.

Here is the Redfin link:

https://www.redfin.com/CA/Irvine/52-English-Saddle-92602/home/112726571

Pictures and the virtual tour and 3D Matterport are in the link below:

www.52EnglishSaddle.com
Title: Re: New Listing - Varenna Plan 2 in The Groves @ Orchard Hills (52 English Saddle)
Post by: mythicquest on March 15, 2022, 01:01:28 PM
Nice house. I personally always liked these Varenna plans with the downstairs guest BR in the back of the house rather than the front.
Title: Re: New Listing - Varenna Plan 2 in The Groves @ Orchard Hills (52 English Saddle)
Post by: USCTrojanCPA on March 25, 2022, 09:53:32 PM
After a few counters, the seller accepted an offer and we opened escrow today.  I'll change the status as soon as the deposit hits escrow.
Title: Re: New Listing - Varenna Plan 2 in The Groves @ Orchard Hills (52 English Saddle)
Post by: USCTrojanCPA on May 13, 2022, 11:38:33 AM
Got word from escrow this morning that the transaction closed today.  The sales price is $2,030,000 and the seller also got a free 5 month rent back.  Congrats to both the buyer and seller.
Title: Re: New Listing - Varenna Plan 2 in The Groves @ Orchard Hills (52 English Saddle)
Post by: mythicquest on May 13, 2022, 01:59:16 PM
Wow 5 months free?? Ok you win all the awards. Congrats on the sale
Title: Re: New Listing - Varenna Plan 2 in The Groves @ Orchard Hills (52 English Saddle)
Post by: The California Court Company on May 13, 2022, 03:44:13 PM
Hopefully the buyer used all cash or didn’t claim primary residence. Otherwise it will be mortgage fraud…
Title: Re: New Listing - Varenna Plan 2 in The Groves @ Orchard Hills (52 English Saddle)
Post by: USCTrojanCPA on May 13, 2022, 04:55:51 PM
Wow 5 months free?? Ok you win all the awards. Congrats on the sale

Well the price was initially $2.06m with a $6k per month rent back but since the seller would pay capital gains tax above a $2m sales price it only made sense to reduce the price by $30k in exchange for a free rent back.  Seller pays less in long term capital gain taxes and buyer pays less in property taxes, a true win-win situation.
Title: Re: New Listing - Varenna Plan 2 in The Groves @ Orchard Hills (52 English Saddle)
Post by: USCTrojanCPA on May 13, 2022, 04:56:27 PM
Hopefully the buyer used all cash or didn’t claim primary residence. Otherwise it will be mortgage fraud…

That's between the buyer and their lender, I was just focused on getting an extended rent back for my client.  ;)
Title: Re: New Listing - Varenna Plan 2 in The Groves @ Orchard Hills (52 English Saddle)
Post by: box on May 13, 2022, 06:25:15 PM
Wow 5 months free?? Ok you win all the awards. Congrats on the sale

Well the price was initially $2.06m with a $6k per month rent back but since the seller would pay capital gains tax above a $2m sales price it only made sense to reduce the price by $30k in exchange for a free rent back.  Seller pays less in long term capital gain taxes and buyer pays less in property taxes, a true win-win situation.

Curious, what changes with capital gains tax above the $2M sales price?
Title: Re: New Listing - Varenna Plan 2 in The Groves @ Orchard Hills (52 English Saddle)
Post by: mythicquest on May 13, 2022, 07:56:40 PM
I assume it’s not the 2mil but rather the 500k triggering cap gains since these varennas were about 1.5 new

Wow 5 months free?? Ok you win all the awards. Congrats on the sale

Well the price was initially $2.06m with a $6k per month rent back but since the seller would pay capital gains tax above a $2m sales price it only made sense to reduce the price by $30k in exchange for a free rent back.  Seller pays less in long term capital gain taxes and buyer pays less in property taxes, a true win-win situation.

Curious, what changes with capital gains tax above the $2M sales price?
Title: Re: New Listing - Varenna Plan 2 in The Groves @ Orchard Hills (52 English Saddle)
Post by: USCTrojanCPA on May 13, 2022, 09:30:55 PM
I assume it’s not the 2mil but rather the 500k triggering cap gains since these varennas were about 1.5 new

Wow 5 months free?? Ok you win all the awards. Congrats on the sale

Well the price was initially $2.06m with a $6k per month rent back but since the seller would pay capital gains tax above a $2m sales price it only made sense to reduce the price by $30k in exchange for a free rent back.  Seller pays less in long term capital gain taxes and buyer pays less in property taxes, a true win-win situation.

Curious, what changes with capital gains tax above the $2M sales price?


Correct, based upon the cost basis of the home (purchase price + closing cost + post-close upgrades) the seller would have crossed the $500k gain exemption amount with a sales price of slight under $2m (with net proceeds in the low $1.9s) at which point anything above the $500k gain amount becomes taxable.  Reducing the sales price by $30k in exchange for the free rent saved the seller approx. $10k in long term capital gains tax. It's situations like these where it comes in handy when a realtor is also a CPA.  ;)
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