U.S home sale from Philippines?

[ttmctoad]

I’m planning to retire within the next year and make the long awaited move to Cebu. My intention is to hire a realtor to sell my home in Virginia after my departure to the Philippines. Ideally I’d like to be present during the sale, but selling a home could take a week or it could take years and I want to set a date, balikbayan box my stuff, and go.

Have any of you guys sold a home in the U.S. while living in the Philippines?  
I’d appreciate any input/suggestions.
Thanks,
Todd Weller

Edited July 10, 2016 by Jollygoodfellow

[robert k]

I haven't sold a home from the Philippines.

I suspect you would need someone with power of attorney to act in your place. Maybe the realtor themselves if you had a contract to not sell below a certain amount and a bond in case the contract  was breached by the realtor as you don't want to be in a lawsuit and or the bond would cover the cost of a suit.

Just out of curiosity. Why would you like to be present?

[ttmctoad]

robert k,

Thanks for your response.

I would prefer to be present to take care of any unexpected problems. I'm hoping that having the house inspected before I sell it will avoid some problems. Uncharted territory for me.

[Dave Hounddriver]

2 hours ago, ttmctoad said:

I’d appreciate any input/suggestions.

My opinion?  You'll do fine.

If it is an 'easy sell' then it won't matter where you are because the real estate agent will track you down to get your signature and make a fast buck.

If it is a 'hard sell' then it won't matter where you are because the real estate agent will ignore you whether you are across the street or across the world.  The agent likes to get a 'multiple listing' for the hard sells and then throws it out there like a hail Mary, hoping that someone will sell it and he will get the listing commission.

Best of luck to you

Edited July 10, 2016 by Dave Hounddriver

[OnMyWay]

16 minutes ago, ttmctoad said:

robert k,

Thanks for your response.

I would prefer to be present to take care of any unexpected problems. I'm hoping that having the house inspected before I sell it will avoid some problems. Uncharted territory for me.

If you really want to find any hidden issues with the house, why not get it inspected now and get everything fixed up?  Is it an older house?

When I moved to PH I was lucky in that my house sold about when I needed it to, before I left, but I took a small loss.

[robert k]

24 minutes ago, ttmctoad said:

robert k,

Thanks for your response.

I would prefer to be present to take care of any unexpected problems. I'm hoping that having the house inspected before I sell it will avoid some problems. Uncharted territory for me.

Ok, you are willing to play the marketing game. The one time I sold a house I made the most accurate representation I could and set the price at what I thought was a sufficient amount and it sold right away. I had one or two people who made counter offers referencing defects real or imagined and I just told them the price is the price and they are simply not my buyers. Took a lot of the work and stress out of selling and the transaction. I wasn't trying to make a killing but I didn't lose money either. Maybe I did make a killing considering all the years rent I didn't have to pay.

[Happyhorn52]

I have my house on the market now and plan to retire to the Philippines once it's sold. It's an 8 year old house so it only took between 2-3 months to prepare it for sale. It's been on the market for 2 months without an offer and my realtor recently suggested that I lower the price $5,000. Hopefully it will sell soon as I am ready to go.

If I were you I would sell it before the move. In my opinion it will be much easier to make any repairs that the buyers inspector finds if you are still in the US Vs getting things done from the Philippines.  I would start ASAP since interest rates are at record lows and the FED has been threatening to raise rates. If it sells fast you can can always rent an apartment for 6 months. 

 

[JJReyes]

My wife and I in partnership with our younger son own a small real estate company in Hawaii. About half the clientele are expat executives domiciled in Japan, Korea, Hong Kong, etc. One requirement is the closing documents have to be notarized in the presence of a US Consulate Officer. We don't know about US Consulate offices in the Philippines, but getting an appointment with a Consul could be tricky.

If you plan to change your residency status to the Philippines, my advise is to wait until after the sale closes.  Otherwise, the proceeds could be subject to FIRPTA or federal withholding. That's 10% of the gross sales price. Some states also have withholding. This is to make sure you pay taxes since you will be residing outside the country.

The above caution about withholding is because the Buyer may demand withholding if they find out the Seller is not in the United States. Otherwise, the tax authorities can go after the Buyer for any unpaid taxes. 

 

[OnMyWay]

1 hour ago, JJReyes said:

FIRPTA or federal withholding

FIRPTA does not apply to U.S. citizen sellers, only foreign person sellers.

I can't find anything on the IRS website saying a U.S. citizen residing abroad and selling a property would be subject to special withholding by the buyer or the government.

1 hour ago, JJReyes said:

The above caution about withholding is because the Buyer may demand withholding if they find out the Seller is not in the United States. Otherwise, the tax authorities can go after the Buyer for any unpaid taxes. 

As a U.S. citizen, if I did not pay taxes due on the profit from the sale of my home (part of my income tax filing) I can't imagine a scenario where the IRS could go after the buyer for taxes I owe.  Regardless of where I live.  If I am not a U.S. citizen, yes, I can see it.

The only statements I find on the IRS website are several like this one about FIRPTA:

"Dispositions of U.S. real property interests by foreign persons. If you are a foreign person or firm and you sell or otherwise dispose of a U.S. real property interest, the buyer (or other transferee) may have to withhold income tax on the amount you receive for the property (including cash, the fair market value of other property, and any assumed liability)."

If you can point me to other information about selling while living overseas, it is appreciated.  I will be doing that in about 2 years.

[Old55]

Talk to your realtor, hire an attorney. Every state has its own laws, here in Washington State every home must be inspected by an approved home inspection agent. 

If it were me I would stay until it sold.