Ted Markow
Junior Member
- Joined
- Nov 14, 2003
- Professional Status
- Licensed Appraiser
- State
- New Hampshire
I am doing an appraisal of a higher end house in a Southern NH town close to the border. The house was built in 2010 with a GLA in excess of 4,000s/f. When built it was not listed on MLS. Fast forward to now. They are doing a Refi and I am looking at some of the current sales that happen to be new construction sales in the immediate neighborhood. For the subject it shows only a deed covering the sale of the land to which appears that the land was purchased and then the house built after the fact by who also happens to be the builder who sold the property. There are a number of sales that have been sold recently with the same format but they have MLS listings, recorded deeds for the land only and construction commencing after the closing on the land. The issue that I think is a problem is that the MLS sheet discloses the sale as if the builder sold the land and house as one showing a closed sale with a value of both the house and land on the MLS sheet.
1. This 1st circumvents the recording fees at the Registry of Deeds by only exposing the sale of the land rather then the land and the improvements that would typically be subjected to the tax. That figure on high end houses could be $10,000 to $15,000 per transaction that does not make it into the county coffers.
2. I question weather it is permissible under MLS rules as the closed price is not what is recorded and is showing it as a closed sale before the house is physically built. There is no way to verify the actual cost to build the house and add that to the land sale for a actual value of the sale.
I am thinking they are not an "arms length" transaction
What say you the wise ones of the State of New Hampshire. Do we further have misleading information for current sales that seem to be attempting to inflate the high end market and circumvent recording substantial recording fees?
I am very interested in your feed back as eliminating those sales will significantly affect the values.
1. This 1st circumvents the recording fees at the Registry of Deeds by only exposing the sale of the land rather then the land and the improvements that would typically be subjected to the tax. That figure on high end houses could be $10,000 to $15,000 per transaction that does not make it into the county coffers.
2. I question weather it is permissible under MLS rules as the closed price is not what is recorded and is showing it as a closed sale before the house is physically built. There is no way to verify the actual cost to build the house and add that to the land sale for a actual value of the sale.
I am thinking they are not an "arms length" transaction
What say you the wise ones of the State of New Hampshire. Do we further have misleading information for current sales that seem to be attempting to inflate the high end market and circumvent recording substantial recording fees?
I am very interested in your feed back as eliminating those sales will significantly affect the values.