Buying from an international seller?

[Moonspinner]

I'd do it for a great deal, but wouldn't deal with it for an ordinary deal....

15% under normal seems like a good baseline...

This exactly because you have to go in accepting that you might have to fork over 15% of the sales price a year after you buy the contract. We’ve purchased from an international seller and wouldn’t do it again. We were not told until we got the paperwork which annoyed us. The entire situation was very stressful and that kind of stress is not worth it for us personally. We are just risk adverse.

 

[IsDVCForMe?]

This exactly because you have to go in accepting that you might have to fork over 15% of the sales price a year after you buy the contract. We’ve purchased from an international seller and wouldn’t do it again. We were not told until we got the paperwork which annoyed us. The entire situation was very stressful and that kind of stress is not worth it for us personally. We are just risk adverse.

Going through it now and not too stressed. Just going to make sure we get documentation that the 15% is being withheld and submitted to the IRS.

 

[VGCgroupie]

This exactly because you have to go in accepting that you might have to fork over 15% of the sales price a year after you buy the contract. We’ve purchased from an international seller and wouldn’t do it again. We were not told until we got the paperwork which annoyed us. The entire situation was very stressful and that kind of stress is not worth it for us personally. We are just risk adverse.

Exactly so while I get frustration for international sellers, the market treats them differently for a legitimate reason. Buyer is taking a risk not the seller.

 

[Moonspinner]

Going through it now and not too stressed. Just going to make sure we get documentation that the 15% is being withheld and submitted to the IRS.

Exactly so while I get frustration for international sellers, the market treats them differently for a legitimate reason. Buyer is taking a risk not the seller.

Yes, so if the stress doesn’t bother you, it could be a good chance for a deal. One thing is to make sure your title company is one of the “good” ones. I realize @IsDVCForMe? Is already in the process, but that is the only advice I have for future buyers going ahead with an international purchase.

 

[geargrinder]

Couple years ago buying from an international seller was the only sure way to get through ROFER. They were taking most everything except active sales and Grand Cal.

When I bought from an international seller, it reduced the stress. Actually, had to pay slightly above going market just to have the security of a contract that wasn't going to be taken in ROFR.



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[IsDVCForMe?]

Couple years ago buying from an international seller was the only sure way to get through ROFER. They were taking most everything except active sales and Grand Cal.

When I bought from an international seller, it reduced the stress. Actually, had to pay slightly above going market just to have the security of a contract that wasn't going to be taken in ROFR.



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At this point, I’m more scared of wiring the money to the title company rather than the FIRPTA stuff lol.

 

[VGCgroupie]

At this point, I’m more scared of wiring the money to the title company rather than the FIRPTA stuff lol.

Wiring money is always nerve wracking.

 

[walt34]

This exactly because you have to go in accepting that you might have to fork over 15% of the sales price a year after you buy the contract.

How so? You as the buyer will already be withholding 15% of the agreed purchase price (or the closing/title company will do it for you). Why would you bid another 15% below market price? You can, of course, do so, but might be losing out on a good deal. It's of course up to you what you feel comfortable with.

 

[juliebee]

Wiring money is always nerve wracking.

I went into my bank and made them do it instead of me doing it at home. It gave me peace that if they did it wrong there would hopefully be some recourse. Luckily everything was fine!

 

[Cfabar1]

How so? You as the buyer will already be withholding 15% of the agreed purchase price (or the closing/title company will do it for you). Why would you bid another 15% below market price? You can, of course, do so, but might be losing out on a good deal. It's of course up to you what you feel comfortable with.

To me it isn't worth the risk... and just because an international seller is listing, doesn't mean it is a good deal...

I'm not even saying it has to be 15% off of a Disboards ROFR price, but it better be on the lower side of average/typical prices at the very least... I'd hate to pay board sponsor prices - which tend to be high to begin with - and then find out I owe 15% on top of that....

 

[Moonspinner]

How so? You as the buyer will already be withholding 15% of the agreed purchase price (or the closing/title company will do it for you). Why would you bid another 15% below market price? You can, of course, do so, but might be losing out on a good deal. It's of course up to you what you feel comfortable with.

There is nothing in the contract that guarantees that the seller will pay the tax. My husband was livid about that contract. He got the title company to scratch out all kinds of stuff in the contract but he couldn’t get them to add a guarantee that we wouldn’t be on the hook for the 15%. In the end I had to convince him to just sign. The government ultimately comes after the buyer because they can and because it’s easy for them to do so. If all goes well=no issue at all. But that’s not what a contract is for. A contract is for when things do not go as planned.

 

[juliebee]

Yikes, reading all this has to give international buyers pause. If they ever want/need to sell, it sounds like they can take a larger financial loss than those sellers in the US.