How do you define "offered for sale"?

[Lee Lansford]

Completed appraisal on SFR purchase being sold "by owner" to neighbor across the street. Contract indicated typical transaction except seller is including furniture in sale. Appraised value 12% below contract price (big shock). Property has not been listed on the MLS or any other verifiable data source. On page one of 1004 which asks "Is the subject property currently offered for sale or has it been offered for sale in the twelve months prior to the effective date of this appraisal" the box marked "No" was checked and the following comment was provided:

"According to the NIMLS, the subject has not been listed for sale in the past twelve months. The subject is being sold 'by owner.'"

Got the following condition today: "If there is a contract for sale, the subject has to be offered for sale. Please check the appropriate box."

What would you do?

Since you are in Illinois, be certain to report all offerings (for sale, for rent...) during the immediate prior 3-yr. period. The box that you "X", however, should be in response to the 1-yr. period question.

Next, I would do this: I would "X" the "yes" box and offer something along the lines of:
"Specific to the current contract, subject offered by the owner at unknown price and terms. As to offerings in the MLS,..."

 

[Mister Ed]

Here is what I recently stated in a report concerning a FSBO.

MLS Indicates no listings of the subject property within the 12 months prior to the inspection date reported on this appraisal. MLS is considered to be the only public and reliable source of listing activity for the local area. The subject is being sold in a "For Sale By Owner" transaction. Per discussion with the seller, the property was advertised in the newspaper and with yard signs for approximately 5 months prior to the signing of the purchase agreement.

My sources for this information--as referenced above--were the MLS (which showed no listings) and the seller (who provided the additional information).

 

[Mr Rex]

I totally disagree that just because a property is contracted that it was offered. Isn't the purpose of this analysis to determine it's market exposure, which was 0? The semantics of a property being sold, has to have been offered is not what this is about. Should'nt the "offering" of a property preceed an agreement for sale? EVERY property is therefore offered for sale right now because someone could knock on the door and make an offer that induces the owner to sell. Instead of focusing on the semantics, let's look at the intent of the question.

Tonto say, you pick wrong hill to die on Kemo Sabe.

 

[Paul Isolda]

An interesting saying Mr. Rex but lacks content relevant to the issue. You seem to think I'm wrong, why?

 

[Ken B]

Could be because the owner has offered to sell the property to the neighbor in accordance with the terms of the contract. The property has not been sold, there is merely an offer to sell and an agreement to purchase. It doesn't make any difference would initiated the process, the process has commenced and will not be executed until the current owner signs the deed transferring ownership to the purchaser.

 

[Mr Rex]

A: "Will you sell me your house?"

B: "Why yes I will."

A offered to buy and B offered to sell.

 

[Paul Isolda]

Way too simplistic Mr. Rex. Think about it and get back to me, your argument fell way short.

 

[Mr Rex]

So did the buyer take the property by force? In a contract there are 2 things, offer and acceptance. The acceptance of an offer is indeed an offer to sell.

 

[Paul Isolda]

So every property is currently offered for sale by your definition?

 

[Mr Rex]

Go back to the 2 things that constitute a contract. If I agree to accept your offer, then I am offering to sell you my home. If I refuse, I am not offering.

But yes in capitalist society, everything has a price.

You can argue semantics all you wish. I prefer to fight bigger and better battles than that 1 checkbox.