Dear Edith: We own a vacation home on a lake and are considering selling it to purchase another vacation home on a different lake. We have used the property exclusively for our own enjoyment, and it has never been rented out. Our son suggested that we look into a Like-Kind Exchange. Are vacation homes eligible for this kind of treatment? If so, what IRS publication would be helpful? -- e-mail
Answer: You can look up Section 1031 tax-deferred exchanges on the Internet, but I'm afraid you'll find they're only for investment property.
WHY OFFER MORE
Dear Edith: I enclosed a clipping about a house that sold for less than the asking price. Other times asking and selling prices are the same. My question concerns some cases where the selling price was greater than the asking price. I had never heard of this before.
Please tell me some possible reasons for this unusual situation. -- S.S.
Answer: Perhaps the sellers underestimated the value of their property, and buyers hurried in with offers so that an auction developed. Or maybe the sellers promised to help the buyers out by paying part of the buyers' closing costs ("seller concessions"), and everyone agreed to add a few thousand dollars to the sale price in return.
FINANCING PROBLEM
Dear Ms. Lank: I wish to sell my vacation condo. Some units are time shares, but mine is not. Mortgage companies will not lend to anyone wishing to purchase in the complex because of the time shares. What can I do? I cannot afford the unit any longer. -- F.
Answer: You can offer to hold a mortgage yourself. Or you can put the place up for sale at a bargain price in return for all cash.