IOUs and the IRS: Advice for Real Estate Professionals
What happens to the real estate market depends on how real estate professionals respond to changes in the market. Whether prices fall as interest rates rise, or prices rise while rates stay the same, whether inventory expands or contracts, one thing is certain: most houses do not sell themselves.
Sellers need buyers and potential buyers need to know whether they can buy anything; whether, for example, owing the IRS money means a bank will not lend a person money, or a person can negotiate with the IRS and get a loan from a bank.
The more real estate professionals know about this issue, the more help they can provide to would-be buyers. Regardless of the outcome, clients deserve to know their rights—that they should exercise their rights—because the IRS may agree to revise the terms of a payment plan.
Real estate professionals who promote these rights do right by their clients. The transactions that ensue, with existing clients or from client referrals, prove this point. The point being, the more value real estate professionals offer, the more offers they can write. Being of service, by delivering exceptional service, is the essence of superior service.
Connecting with other service providers is essential too.
A good real estate professional calls upon experts, particularly when dealing with the IRS. If a CPA can add clarity, let him; where he clarifies an issue to the satisfaction of a bank, thank him; when he clarifies an issue to the satisfaction of the IRS, settling the issue altogether, tell the world about him.
An expert also has the ability to put an issue in its proper context. This skill, the ability to prioritize creditors and coordinate with the IRS, matters—a lot.
Romeo Razi, CPA, says, “The bank may be ahead of other creditors you have, but they’re always behind the IRS. That’s why you must be strategic when you owe the IRS and want a home loan.”
Because this information is intelligible, it is actionable intelligence. A real estate professional who makes this intelligence available, or avails a CPA to furnish a client with this intelligence, is not only smart but wise.
Wisdom is the foundation of excellence, the determinant by which professionals lead and leaders act.
The real estate industry needs professionals of this caliber.
If the housing market slows, professionals will adapt; if the market stalls, professionals will persevere; if the market improves, professionals will prosper.
Real estate professionals know these facts, just as they know which facts require the expertise of a tax professional such as a CPA.
Having a CPA review the facts is advantageous to all parties.
Real estate professionals who honor this fact know what to do, or rather what others can do, so clients can achieve their goals.
By analyzing and arranging the facts, by presenting the facts in the best possible way, real estate professionals and CPAs show leadership.
By furthering their efforts, we show others what leadership is.
Written by Lewis Fein FEIN for www.RealtyTimes.com Copyright © 2022 Realty Times All Rights Reserved.