Discrepancy Between Recoded Sale Price And MLS Sal

[moh malekpour]

I have seen many times that agents or MLS sales prices are higher than recorded sales prices because in some points agents think that the property was sold at x amount and prior to recording they put that x amount in MLS without changing it to actual sales price that few days later was recorded.

At this time, I saw just opposite. The agent’s sales price in MLS was 300k and recorded sales price was 320K that made me suspicious to find out what was going on .Although, I wanted the sales price would be the one that was recorded but I had to find the fact because I have to use that comp very badly. So, I called the agent and she was surprised to know that the recorded sales price was so much higher than her actual sales price. I told her to let her buyer know that an error has happened that is not in the buyers advantage as the property tax is according to the recorded sales price.

If I didn’t need that comp, I wouldn’t use it but since that is the only good comp in the neighborhood, I am going to use the agent’s sales price in the MLS for that comp and disregard the recorded sales price with an explanation in the comment because the recorded sales price is an official sales price while the MLS or agent sales price is not.

This is the best reason in having at least two documents for every comp and one has to be MLS and make sure that they confirm each other.

 

[Mike Garrett RAA]

I concur....always verify from two sources. IN MY MARKET that is MLS and Public Records. When in doubt, use what is recorded for the final number.

 

[moh malekpour]

When in doubt, use what is recorded for the final number.

Mike got it in reverse
The recorded number is wrong. That is the number that every on relies on but the MLS number which is the agent's number is correct but it is not official number as it is not recorded. I am going to use the agent's number even though, it is much lower than the recorde number because it is the correct number.

 

[Ramon Tate]

I don't know about California, but in Tennessee the official recorded price can be the transaction price OR the MARKET VALUE, which ever is the higher figure. Recording a "market value" figure that is above transaction price is most often utilized in non-arm's-length transactions where the transaction price would obviously be way below market or for some of the more complex transactions. But, recording a higher "market value" number as the price has also been used by persons with an eye toward flipping a property in a few months.

 

[Thomas N. Morgan]

Moh,

In the case you speak of, the amount of the sale as indicated by the stamps might not have been a mistake. Excess doc. stamps are sometimes put on the deed to make the property look more valuable.

You can call a Realtor for clarification. Most of the time when I call a Realtor for clarification they say they can't remember, will have to look it up in the file and and call me later. Once, one of them did. When I was selling real estate, you can bet I never "forgot" how much one of my deals sold for.

The advice you got about going by the stamps was good. However, it is almost impossible prove what something actually sold for. Even a closing statement does not always reflect it. Money can change hands just after the closing.

So, stick with the stamps. Who's going to say you were wrong?

 

[moh malekpour]

Thomas,

$20000 Stamp fee for $300000 trasaction? It is about 6.5% stamp fee! If I remember it correctly, it was .033% of the sales price not 6.5%. You talking about alots money.
I called the realtor and she said the sales price was $300000 that shows in MLS too.
It was listed for $310000 and sold for $300000. She said, they wanted to sell it for $3200000 but it was appraised $300000 and that is what is sold. I wish, I had another comp then I could throw this one out because it is a mess. I don't know why they have $320000 there but it is not in the buyer advantage and I feel skeptical to use either of sales prices.

 

[Ariba]

Mike said,

When in doubt, use what is recorded for the final number.

What? Forget about all the seller concessions?

Ron
AppraiserPlus.com

 

[Jo Ann Meyer Stratton]

I always look up the Deed of Trust in the County Recorder's office for each comparable. If there is a mortgage of over $300,000 then the public record appears to be more reliable. If the mortgage is less than $300,000 it is probably the realtor that provided the right info. And then you need to find out if there were any special financing concessions, etc. We have Affidavit of Values here in Arizona, signed by buyer and seller. However, the title companies some times type up the Affidavit before all the dust settles and then when the final sales price is agreed on--they forget to change the number on the Affidavit. So then I start making phone calls to realtors.

 

[Robert Dunkle]

If you can find a telephone number, call the buyer or seller, or even go by to try to see the buyer. You can find out all kinds of good stuff if you are polite and tell them you know they don't have to answer, but please............would they. The Realtor may have handled 20 or 30 sales since that one, and might not remember, but the seller and buyer have typically not handled but one other, at the most.

 

[DTB]

Moh,

It isn't 20K for the stamps. They may have purchased enough stamps to indicate a 320K price. No official is going to stop you from paying extra.

Ramon explained the possible motivation.