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Verifying A Sale Price Question

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gotnoworrys

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Mar 2, 2013
Professional Status
Certified Residential Appraiser
State
Florida
The Tax record and deed with the clerk of the court indicate a property sold for X. The buyer tells me it sold for X+$10,000.
This was financed by the seller (PMM). Which figure do I use?
 

hastalavista

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May 16, 2005
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Certified General Appraiser
State
California
I'd use the figure I thought was most reliable, fully disclosing the why's/wherefores. Did the buyer indicate why there might be a discrepancy?
But a higher sale price and seller-financed purchase may be linked (favorable financing requiring an adjustment).
 

bnmappraisal

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Certified Residential Appraiser
State
Florida
"It's not what you know, but what you can prove" - Training Day movie quote

I would disclose both in the report (Tax record says X, conversation with buyer X+$10k), but would "use" the one you can prove; the tax record and deed.
Unless the buyer can provide better proof regarding the X+$10k, use what you can prove.
 

J Grant

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Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
is there another sale you can use as a comp? These kinds of odd terms/conflicting info comps are dicey...if I use it I like to use it as a fourth comp with 3 with more conventional term sales whenever possible.

.call the seller and or RE agent because chances are since it is seller financed, what buyer is referring to might be an additional 10k silent second mortgage from seller buy will have to pay off, or buyer paid 10k cash paid on top of recorded price to get the seller financing...some odd thing
 

J Grant

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Professional Status
Certified Residential Appraiser
State
Florida
ditch it as a comp lol avoid the headache...

unless you really need to have it in there...
 

Peter LeQuire

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Retired Appraiser
State
Tennessee
Tennessee requires that an "affidavit of consideration" that is part of every warranty deed state that the consideration/price be the greater of the sales price or the actual value of the property. While this was (probably) put in place to make sure that the correct transfer taxes and recording fees were paid, that requirement has been used by, for example, builders or developers to inflate recorded prices for their properties in the counties' deed records. This fact has the potential of raising a question about the thoroughness of an appraiser's verification of sales information when there are differences between recorded and claimed prices.

Generally, the MLS price and recorded price for a transaction will be the same. One way to determine the actual price is to look at the closing statement (which assumes that there was a title search and some third party who prepared closing documents and did the closing).

(In this state, the property assessor's (tax) office gets its information from the Register's (deed records) office - either could be used to verify some other source, like MLS or a closing statement.
 

bnmappraisal

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Gold Supporting Member
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Nov 9, 2011
Professional Status
Certified Residential Appraiser
State
Florida
is there another sale you can use as a comp?
OP never mentioned the issue at hand was for a comp? I'm not saying you're wrong, but the way i understand the question was for a subject property. I could be wrong

Tax record and deed - verifiable proof
buyer info (borrower for a refi? or private individual?) - no verifiable proof
 

gotnoworrys

Sophomore Member
Joined
Mar 2, 2013
Professional Status
Certified Residential Appraiser
State
Florida
ditch it as a comp lol avoid the headache...

unless you really need to have it in there...
This is the subject's prior sale from August 2016. It is Comp 4. Island properties are tricky as the owners are all sure their property is by far better than any comparable. Using his prior sale will put the BS to rest.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I'm not a big fan of prior sale of subject as a comp (typically), especially with an oddball situation like this, why put it on grid, why not just comment on it? The prior sale has to be disclosed anyway...jmo

My take on selection comps, if including a sale as a comp emhances reliablity and credibility of conclusions and opinions including value opinion, use it on grid. If including it weakens the reliability/credibility, don't put it on the grid, comment and analyze it in narrative if relevant
 

Peter LeQuire

Elite Member
Joined
Jan 3, 2005
Professional Status
Retired Appraiser
State
Tennessee
This is the subject's prior sale from August 2016. It is Comp 4. Island properties are tricky as the owners are all sure their property is by far better than any comparable. Using his prior sale will put the BS to rest.

If you have very limited data, and a relatively recent sale of the property being appraised, verify the terms, interview anybody who will talk with you about it, determine whether the house has been updated/modified and use it. Assuming the sale was arm's-length, and that there were no concessions (nor hanky-panky) with price information, you'll not find a better comp. There are many areas I am familiar with or know of where property owners sneer at MLS, and generally have a regularly updated list of people interested in living in those areas (and people who know people who want to live there).
 
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