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Agents Refuse to Disclose Sales Concessions

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David Dietz

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Oct 30, 2006
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Certified Residential Appraiser
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Florida
More and more I am having agents refuse to disclose and seller contributions which may have inflate the true sales prices.

I have been told everything from client confidentiality to it is a violation of the Home Land Security Act. Has anyone had this happen and is there anything that can be done about.

I was told by one agent that members of the local Realtor Board have instructed agents not to disclose these because appraisers are removing the concessions from sales prices in reports and it lowers appraised values. Unfortunately I have nothing in writing. This same Crap went on during the boom and it continues. It is like the Aids chart in the doctors office which shows how may people you have exposed yourself to just by sleeping with one person. The same is true for this one inflated sales leads to several and so one.
 

nauthead

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Nov 26, 2004
Professional Status
Certified General Appraiser
State
Florida
I have had a few refuse to disclose that info. My response is "I'll take that as a yes". One told me that appraisers are killing deals by deducting for concessions. The same agent told me it's their office policy not to disclose this info. Unfortunately, you can't force it out of them.

Another disturbing trend is agents marking deals as cash transactions when there is a mortgage. I think they are marking cash to try to hide financing/financial concessions. I have a stack of MLS sheets showing cash and stapled to it I have a copy of the mortgage from the clerk's website. I'm headed to the MLS board office within the next few weeks to show them this info. I doubt they will care but I'm going anyway. I hope everyone is verifying how the properties were purchased through a county clerk or some other entity outside of the RE agents.
 

Wendy

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Joined
Feb 23, 2004
Professional Status
Certified Residential Appraiser
State
Florida
Lately when I call about concessions, I seem to always get a very quick "nope, no concessions that I remeber". They answer so fast that I know they are full of it.

I'd say that only about 10-15% of agents are honest about it.
 
Joined
Nov 7, 2005
Professional Status
Certified Residential Appraiser
State
Florida
Another disturbing trend is agents marking deals as cash transactions when there is a mortgage. I think they are marking cash to try to hide financing/financial concessions. I have a stack of MLS sheets showing cash and stapled to it I have a copy of the mortgage from the clerk's website. I'm headed to the MLS board office within the next few weeks to show them this info. I doubt they will care but I'm going anyway. I hope everyone is verifying how the properties were purchased through a county clerk or some other entity outside of the RE agents.


Good point - I do think there are more cash transactions (especially in the REO biz) but I don't see their reasoning for violating MLS rules. Can't wait to hear what the MLS board says about this. Please update us!
 

Michael Tipton

Senior Member
Joined
Sep 25, 2005
Professional Status
Certified Residential Appraiser
State
Florida
More and more I am having agents refuse to disclose and seller contributions which may have inflate the true sales prices.

I have been told everything from client confidentiality to it is a violation of the Home Land Security Act. Has anyone had this happen and is there anything that can be done about.

I was told by one agent that members of the local Realtor Board have instructed agents not to disclose these because appraisers are removing the concessions from sales prices in reports and it lowers appraised values. Unfortunately I have nothing in writing. This same Crap went on during the boom and it continues. It is like the Aids chart in the doctors office which shows how may people you have exposed yourself to just by sleeping with one person. The same is true for this one inflated sales leads to several and so one.

There is at least one builder in the Lee County market that lists sales concessions in their MLS sheets if the borrower uses their "preferred lender". When you contact their sales office they refuse to disclose if concessions were paid, identify their "preferred lender" and have instructed their closing agent not to provide information.
Thanks Adams Homes.
 

Wendy

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Joined
Feb 23, 2004
Professional Status
Certified Residential Appraiser
State
Florida
....Thanks Adams Homes.

Ahhh, one of many reasons why I don't even look at their sales. Always 10-20% higher than competing new home sales. Better quality? I doubt that's the reason for it.

Just like there are certain realtors whose sales I generally ignore. One of the worst around here has her own pet MB and appraiser. Amazing how her listings and sales always lead the market. :dry: She has never once admitted to a concession either.
 

David Dietz

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Joined
Oct 30, 2006
Professional Status
Certified Residential Appraiser
State
Florida
This all leads to the need of a recorded HUD statement.
 

nauthead

Senior Member
Joined
Nov 26, 2004
Professional Status
Certified General Appraiser
State
Florida
The HUD won't show concessions, only the lender's closing sheet will. The HUD simply shows amounts not where the money came from.
 

Michigan CG

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Nov 1, 2006
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Certified General Appraiser
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Michigan
Sorry to invade the Florida Board here...as it is closed to appraisers from other states, but I think you might get a good reaction if you and the other local appraisers penned a letter to the local MLS stating that until concessions are disclosed all sales will have an assumed 6% concessions deducted in all appraisals.

Then start verifying with BOTH Realtors. If that certain Realtor says no concessions and the second Realtor says there were concessions write a letter to the first Realtor, tell her your discovery and tell her all her future sales will assume 6% since she still refuses to cooperate.
 

Joyce Potts

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Joined
Feb 6, 2005
Professional Status
Certified Residential Appraiser
State
Florida
It's another dirty little secret the developers and lenders are well aware of.

RECORD THE HUDS and make them public record. Problem solved.
 
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