• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

FYI - Developer 'sells' lot to Builder

Status
Not open for further replies.

Pamela Crowley (Florida)

Thread Starter
Elite Member
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Doing a vacant lot in a newer high end gated community, Atlantic Ocean beach front. Total of 27 beach front lots. Sales are:

02/26/2002 - $704,900
09/13/2001 - $679,000
02/28/2001 - $650,000
11/30/2000 - $675,000

Ten of the lots are listed as available at $704,900. Basically, all of these lots are considered equal.

Turns out that the newest sale of $704,900 is from the developer to a builder. No big deal EXCEPT, developer and builder are the same person. This guy paid almost $5,000 is deed stamps to have a recorded sale this high.

By the way, the subject lot was sold by the developer to a LLC on 03/24/2000 for $375,000. Is the current seller maybe a relative? Don't know. Is supposedly a friend of the buyer. I don't have the contract yet but LO said he thinks it's for $780,000.

:roll: But... but... but, this buyer is very intelligent!

Where are all these scam deals coming from?!?!?!?! I hope the rest of you are getting deals like this. I'd hate to be the only one! Now I'll start checking for other beach front lot sales/offerings.
 

P.Johnson

Sophomore Member
Joined
Feb 4, 2002
Looks like good research on your part. I wonder why more appraisers don't get themselves into trouble by not 'confirming' sales with one of the parties to the transaction. I always call on the high end or very low end sales. The last time the URAR was changed, FNMA/FHA and others made a big deal out of providing two data or verification sources. My guess is most appraisers just use some type of MLS and on line or county data service as their two sources, if they use two at all. Does everyone's on-line source tell you if the sale included grandma's china hutch and 1975 Buick? I know I sound like an old timer, but remember when all appraisers took the extra time to do this type of research (as well as providing a good product) and expected to get paid enough not to cut corners??? We shouldn't have to do three appraisals a day to make a good living.
 

P.Johnson

Sophomore Member
Joined
Feb 4, 2002
Looks like good research on your part. I wonder why more appraisers don't get themselves into trouble by not 'confirming' sales with one of the parties to the transaction. I always call on the high end or very low end sales. The last time the URAR was changed, FNMA/FHA and others made a big deal out of providing two data or verification sources. My guess is most appraisers just use some type of MLS and on line or county data service as their two sources, if they use two at all. Does everyone's on-line source tell you if the sale included grandma's china hutch and 1975 Buick? I know I sound like an old timer, but remember when all appraisers took the extra time to do this type of research (as well as providing a good product) and expected to get paid enough not to cut corners??? We shouldn't have to do three appraisals a day to make a good living.
 

Pamela Crowley (Florida)

Thread Starter
Elite Member
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
P.Johnson,

THANK YOU!!!!!

I heartily agree. The Florida Board can and will discipline appraiser's who do not verify the comps. The hardest part is catching them. ie: finding someone with the ba**s to file the complaint.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Pam,
I have run into similar situations with sales between individuals and a LLC or a family trust. That kind of thing makes me very suspicious of those sales, and I dig around to find out who owns or manages the LLC or trust. They are just hoping that all you will do is take it from MLS and roll over for a good belly scratching. Good girl! Now go fetch my number. 8)
 

Ross (CO)

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Pamela, ...are you implying that only males should file complaints against other unscrupulous appraisers ? L.O.L. ! Let's see, what anatomical similarity can we find which would include both males AND females as suited to file justified complaints ? ( "Guts" is one word ) Once again, just a litle L.O.L.
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Pam;
Have always noted waterfront sites to sell for big bucks, it's a natural :!:
Now you've suppled just enough input, to support your opinion's, but not enough to tell. It is my understanding if you sell from an "LLC" to a "Trust" thats fine; it's the trust that has to come up with all the money, as I understand it Banks will not Lend to a "Trust". So, in that instance I don't know where you can derive a funky deal of any type.
Did one here several years ago, the guy pays $975,000 for the house & lot (Direct Waterfront) then puts it into a "Trust" and sinks another 1.5 million into it and has been pouring money into it for several years now. I cannot reveal the owner, but I can tell you that the "Trust" created will never be breached by anyone other than him. No one has the money or b***s (your owrds) to. By the by $600,000 to $900,000 for a gated waterfront doesn't sound out of wack at all.

*Ross - No men aren't the only ones and it is not male oriented, I know some women Realtors; Bankers; and Appraiser's that are as B***sy as men and some can outdo some men :lol: :lol: :lol:

8)
 

Pamela Crowley (Florida)

Thread Starter
Elite Member
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Update:

Subject prior sale of $375,000 was to a relative. No scam here, just making money the smart way. This pending sale will be a 1031 exchange for the sellers.

Now, the developer/Realtor/builder selling a lot from his development company to his building company.... that is not a qualified comparable sale. Smart on his part but, won't work this appraiser.

FINALLY received a copy of the purchase/sale contract and it's for $679,900, which is the MLS active listing price. No problem here now! If the LO had sent me the contract, survey, etc. to begin with, it would have saved me about 3-4 hours of work though. Ah well, this one is finished, all are happy and more are in progress.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks