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How to report sale?

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Geoff Hatcher

Junior Member
Joined
Jan 23, 2002
Professional Status
Certified General Appraiser
State
Ohio
Been a licensed Realtor since 1988.... been appaising full time since 1993. Listed a friends house (friend of 34 years...crazy) last night at the top of his market .... $175/SF.... (Prior top sale are $169/SF, & 173/SF/.... Predomintantly $150/Sf) Buyers Realtor is a relative of the buyer and is waiving all commision, plus purchaser is a neighbor whom I wrote a commission exclusion. Deal was made based on list price....less 3% co-op.... is this a concession?? Seller has the same net. How should this deal be reported to MLS? full price is $224,900, seller nets the same at $218,000 +/- without a co-op.... Does anyoneconsider this a concessiosn??


Fun to get active every now and then to see what is happenning in the market.... Somthing to think about
 

Geoff Hatcher

Junior Member
Joined
Jan 23, 2002
Professional Status
Certified General Appraiser
State
Ohio
To continue... house is in contract after four hours on the market.
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
Concessions are only considered in appraisals where they are usually from the seller to the buyer.

In an MLS, the gross sales price shown on the P.A. is usually the reported price. Concessions, sellers selling costs (commissions or lack thereof), delayed possessions, etc. are not considered before reporting the selling price.

I would not get into trying to make any adjustments before reporting the sale. But do keep that "comp info" for your appraisal data base.
 

liznindy

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Indiana
The sale price is the contract price. Concessions are closing costs or repair allowances or personal property included in the contract price.

You could revise the MLS remarks to include that the buyer's agent did not accept a commission.

It is not unusual for the Realtor fees to differ from the "standard" percentage, especially if the buyers/sellers are using the agent in a couple of transactions.
 

Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
The above is correct.

Had the contract been written at full price, with the seller giving 3% cash back at closing, that would be a concession.
 

Karl

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
If 3% cash back is TYPICAL of a contract in the market area is it a concession?
 

Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
Yes, it is still a concession, though you can state it is typical.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
You report the contract amount as the sales price. Yes it is a concession should an appraiser call you and ask....but that happens all the time so unless it is totally atypical to your market, don't worry about it.
 
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