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NC Law: Define a real estate "sale"

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Ken-NC

Sophomore Member
Joined
Feb 21, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Could someone kindly point me in the right direction? I am trying to locate the law that describes a real estate sale, or market transaction.

I know that it says something to the effect of, "to be considered a true sale, the property must have been available on the open market..." and so on.

I had a rather lengthy discussion with a real estate agent today who defended his practice of dumping new construction sales (not on the open market) into MLS.

Thanks.
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Ken,

You may want to think about this a little differently. I am aware of many sales that have been listed in MLS. The listing agents are so lazy, stupid and just down right incompetent that the properties essentially were not exposed to the Market. On the other hand I have seen very good exposure of new construction by developers/builders. They have full time agents on site, Banner, flags, free hot dogs, realtor mailings, relator bribery, trips, cars, planes you mname it they did it.

Oh, I dont think its written anywhere for which you ask.

<span style='color:red'>"Going to war without France is like going deer hunting without your
accordion."


--Norman Schwartzkopf </span>
 

Stephen J. Vertin MAI

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Illinois
Andrew:

Before I purchased my house, about 5 years ago, my wife and I owned a condominium. We had it appraised, just before listing, so as to determine a fair listing price. I had a friend do it. A very good appraiser I should add. The property appraised for $100,000.

The first listing broker (a friend of a friend) listed the property, showed it once in a month and came back to us saying the price was to high. We needed to drop it, she said. Further, she said it in a very confident and authoritative manner. Had I not been in the business I may have been inclined to believe her. I told her we were not dropping, there was no market evidence supporting we should. I think she showed the unit one time after that. The listing expires. I get on MLS and find the most active condominium broker in the area. I hire her. In two weeks the new broker showed our place 15 or 16 times and by the 15th day we had a contract for $110,000.

You are right, there are a number of brokers who do not do their jobs. Further, there are a lot of appraisers who just low ball properties. They think because they are low they are good. A year before we sold the place or the above referenced condominium we were going to refinance. The unit appraised for $65,000. There was little appreciation between the time sold and the appraisal. The appraisal was a piece of junk. However, no one cared what I as a borrower was saying. They just thought I was another guy who thought his place was worth more than it really was.

Bottom line is it is hard to find good professionals in any endeavor now days. That goes from lawn workers to doctors. Few care about performance and only want their check.

Steve Vertin
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Also check out Fannie Mae guidelines that went into effect 06/30/2002 Section 102.02--Unacceptable Appraisal Practives and Section 304--Factory Built Housing regarding created sales.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
So answer this then..... property goes on the market and sells in one day. Should we reject this sale because...."It wasn't exposed to the market for a reasonable period of time?"

Please tell me where it is written that a property has to be on MLS to be exposed? Define "reasonable period of time". Is a property that is placed on MLS but grossly over-priced exposed to the market?
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Mike G -

anytime on the Market, is "Market Exposure" be it one day; one hour or one year; and no we shouldn't reject this sale, we should (really) know our own market area.

doesn't have to be listed on MLS to be exposed either; one of my old time buddies and I came up with an idea over 30 years ago when the rates were 12% and climbing, and that was when we listed the property we wouldn't put it on active MLS for a few days, because we would sit down and call (by phone) all the neighbors within a four block area and see if any of their relatives or friends would be interested in this area to purchase a property. we got so good at it, that some of our competitors would call and ask if we would advise them if we got anything in area's they wanted to live in. It was a true partnership, I would get the Listings and my partner would make the calls and then we'd switch.

we made significant incomes back then, and were sought after by many Real Estate companies (patting myself on the back here :D )

8)
 

Ken-NC

Sophomore Member
Joined
Feb 21, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Well, here's the type of transaction I'm referring to:

Real estate firm sells a vacant lot.
Buyer has a choice of roughly five builders to choose from.
Buyer selects a floorplan, makes a few changes.
Builder says, "It'll cost $x.
Real estate firm places the entire transaction into MLS. (DOM = Zero)

Now, is this a "true" sale?
 
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