NCPaul24
Sophomore Member
- Joined
- Jul 9, 2007
- Professional Status
- Certified Residential Appraiser
- State
- North Carolina
Hey there folks,
We just finished going through a review in Cornelius NC, a condo development St Phillips Square. While I wasn't there when the comps closed, and I'm sure that some people can buy multiple properties without being "straw" buyers, and I'm sure that it happens all the time that properties transfer twice on the same day for low 200s and mid 300s, but I personally checked about a dozen of the sales in this neighborhood and every single one of them appeared suspect. Sales in this neighborhood ranged from 197k to 345k during the 12 months prior to the effective date of the review. Based on MLS description and exterior inspection, there was no readily observed reason for the difference in sale prices. I checked the deeds for all the original sales and they reflected an LTV of 80%, 85%, and 90% with no second noted in the ROD website. Like I said, I wasn't there when they closed so I can't state for certain they were not arms length. But, this is consistent with other non-arms length transactions that used to be common place with land/home package financing that led lenders to finance 100% of the purchase price while showing a lower LTV on the books. (Usually 80%) With St. Phillips Square the double closings have been showing up in the POLARIS system so it's easy to see when you verify the sale with tax records.
We just finished going through a review in Cornelius NC, a condo development St Phillips Square. While I wasn't there when the comps closed, and I'm sure that some people can buy multiple properties without being "straw" buyers, and I'm sure that it happens all the time that properties transfer twice on the same day for low 200s and mid 300s, but I personally checked about a dozen of the sales in this neighborhood and every single one of them appeared suspect. Sales in this neighborhood ranged from 197k to 345k during the 12 months prior to the effective date of the review. Based on MLS description and exterior inspection, there was no readily observed reason for the difference in sale prices. I checked the deeds for all the original sales and they reflected an LTV of 80%, 85%, and 90% with no second noted in the ROD website. Like I said, I wasn't there when they closed so I can't state for certain they were not arms length. But, this is consistent with other non-arms length transactions that used to be common place with land/home package financing that led lenders to finance 100% of the purchase price while showing a lower LTV on the books. (Usually 80%) With St. Phillips Square the double closings have been showing up in the POLARIS system so it's easy to see when you verify the sale with tax records.