is this fishy or am i being paranoid

[Edward OConor]

Short sale??

 

[Charles Knutson]

If the buyer has a significant interest in the corporation, it's not an arm's length transaction -- the value is what it is, but the contract (and contract price) is almost irrelevant.

Disclosing the non arms length nature of the transaction is your most important defensive move.

 

[larry shane]

Oh Webbed One

i might should have said 'the FMV' (fair market value)

 

[ZZGAMAZZ]

LARRY: One might wish to have reviewed prior threads with search word "fair" in order to be aware of the pulse of the Forum concerning the distinction between "FMV" and "MV." Hopefully 'nuff said.

 

[Mark K]

the subject sold in 11/07 for $1,075,000 through MLS and is owned by a corporation whose name strangely includes portions of the first names of the 'buyers' on the contract. well.. i look up the corporate papers and what do we have but the person listed on the corp papers has the same last name as the buyers.

If the corp. is looking for a tax loss of $275K by selling it to the majority stockholder, the IRS may look very carefully at how they arrived at the value for this tax loss scheme. Your appraisal might be reviewed VERY CLOSELY by some unfriendly people looking for a reason to disallow this suspicious deduction.

The whole deal doesn't pass my smell test. It would be too easy for lots of people to purchase a home thru their corporation, sell it to themselves at a discount, and then claim a loss for the corporation.

Be very careful that you don't end up involved in some bogus tax fraud scheme.

 

[Joe-NC]

This kind of stuff always drives me crazy. If we are going to be fraud investigators running down every rat hole looking for possible links between buyers and sellers, analyzing every single bit of minutia in the sales contract, then we should be paid like attorneys. The appraiser should only be liable for the value estimate.

Notice I said should be.

 

[larry shane]

is what i said or meant THAT confusing to some of you ? to those that understood and were able to focus on the point, thanks for your input. i take great pride in the work i produce and have built a sterling reputation in my 15 years in this wicked mistress of a business. i sleep very well at night knowing that my head will be on my shoulders when i wake up (and not on a platter). my work is thorough, well explained and as clean as can be. i perform every assignment as if it were going to be reviewed or defended in court. i presented my situation for input as i respect the collective experience represented at the forum. to those of you who get it.. thank you.

 

[larry b]

subject transactionS

doesn't USPAP state: report, consider, analyze prior sales, listings, etc for a period of one year on residential? So..you not only need to get to the bottom of the latest sale, but also the former purchase. Put it all on the table and do a concientious job. You'll be fine.

 

[Marcia Langley]

Could be that they are simply transferring the property out of corporate ownership and into their private holdings? It would be perfectly reasonable to have a contract in that case - creates a nice clean paper trail for the tax dudes.

Wendy,

That'd be my bet.

Disclosing the non arms length nature of the transaction is your most important defensive move.

I agree.

 

[George A Easton]

wow, has nobody mentioned that you should cash the appraisal fee check before you spend more time on this? if you dig and find something truly fishy, they will probably get freaked by either the time you're taking to do it or the questions you ask and cancel the appraisal. after all, you're only doing your job in a manner that upholds the integrity of our profession. how absurd of you! (if you've cashed it already then i say what Emily Litella would say)