Discrepancy Between Recoded Sale Price And MLS Sal

[Pamela Crowley (Florida)]

what would be the reason to pay extra $22 tax and get $20,000 added to your home value and pay property tax for that extra amount thereafter year after year?

We've had some real estate agents and some investors here in my area that have done that specifically to raise the prices in given areas. Had a Realtor admit it to me then told me not to tell. Found 'cash' sale deeds recorded between certain investors flipping properties among themselves for higher 'sale prices' than could ever be justified so they could then hand them to appraisers to use as 'comps' for their next deals.

 

[Edd Gillespie]

Originally posted by Pamela Crowley (Florida)@Mar 30 2005, 06:24 AM

We've had some real estate agents and some investors here in my area that have done that specifically to raise the prices in given areas. Had a Realtor admit it to me then told me not to tell. Found 'cash' sale deeds recorded between certain investors flipping properties among themselves for higher 'sale prices' than could ever be justified so they could then hand them to appraisers to use as 'comps' for their next deals.

So, it occurs to me that, notwithstanding the issue of reporting criminal activity which is best left to another discussion, if these "flips" and "funny-stamp" transactions comprise enough sales in the market should an appraiser mention in the report how the "flipo" market influences the "non-flipo" market, since that seems to be the objective of it?

 

[jeff samolinski]

Pam:

This is an example of how many diffrent types of schemes are out there designed to fool us-my question is how in the heck are we supposed to be aware of all of them? There is no limit to their innovation-Its getting to be like we need to be detectives or full time investigators to uncover these things and we sure as heck aren't getting paid for it and with the emphasis on turnaround times it makes it nearly impossible to get to the bottom of things in the time-frame they give us. Most of the time i am able to spot these things because if you look at enough comps and verify the terms of the sales most of this crap can be uncovered but it takes time-not to mention the time and effort that goes into responding to why you did not use those mucked up sales after you submit the report to the lender and some smart aleck realtor calls the lender and submits those sales-then you have to write an addendum explaining it all blah blah blah-That is on ereason I now have a standard letter available to send to clients basically stating that there will be an additional fee for responding to why additional sales were not used and that requires the lender to identify who and where these additional came from.

I don't know its getting to be less and less rewarding to be the only unbiased one in the whole process and still be the least compensated. It doesn't matter what some appraiser are charging cause it sure ain't as much as everyone else is getting in the deal!!

 

[Pamela Crowley (Florida)]

I do report that this kind of activity IS happening in this market area, care and due diligence was taken to attempt to identify and NOT use sales that were investor or speculator involved, but that it appears these kinds of transactions are now driving some of the markets here and very well may be skewing the statistics to higher than what would be considered 'normal' without these forces.

 

[moh malekpour]

Pam,

The odd thing in this case is that the realtor's sales price in MLS is much lower than what is recorded. If the realtor had such intention in mind, she would put at least the recorded sales price that was $320000 in MLS as the final sale price so she could brag about it and tell every one how smart she was who sold that property that high. The MLS is the one that common people and other realtors look at and make conclusion of the market. This realtor who was the listing agent, was not aware of that higher sale price in the record and the best reason was that her reported sales price in MLS was $300000 not $320000. I beleive, the listing agent is the one who is in control of transaction by that I mean to send the material and the purchase contract to escrow. The escrow and title insurance people who do the recording have to do whatever is in escrow instruction and the escrow instruction is from the sellers and buyers not realtors and mostly it is similar to the purchase contract with some more calculation about credit and debit to involved parties after the closing.