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What is the sale price?

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incognito

Senior Member
Joined
Jul 14, 2005
Professional Status
Certified General Appraiser
State
Florida
I am using a comparable sale in an appraisal, where the MLS indicates a sold price of $200,000, and the Public Records indicates $205,000. The Realtor indicates that the actual contract was for $200,000, and that was the contract sale price, and the price she entered in MLS. However, at closing, the buyer and seller executed a new contract for $205,000, where the buyer was to receive $5000 at closing for improvements. Not really a unique situation.

My question is: How would you report the sale price on the sales grid of the appraisal. Yes, it must be fully explained in the report, but the sale price on the grid options, the way I see it, are:

1-Report a sale price of $200,000
2-Report the sale price as $205,000 and make a -$5000 conditions of sale adjustment.

Which way would you say is correct, or more correct, and why?
 

Ken B

Elite Member
Joined
Feb 18, 2004
Professional Status
Certified General Appraiser
State
Florida
2. Because it more accurately reflects the terms of the transaction.
 

RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
I would think that the sale price was $205,000 and the seller paid $5,000 back to the buyer in terms of concessions.
 

Cookie

Junior Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Indiana
I would agree with Kenneth. The public record shows the sale price & the RE agent verified it. The concessions, or terms need to be reported.
 

Tom Eichholz

Sophomore Member
Joined
Apr 30, 2004
Professional Status
Certified Residential Appraiser
State
Kansas
If, in your research, you found that there was an addendum to the original contract signed by both parties; then your report should show that the SP was the new $$$ amount, regardles of the what the Realtor reported in MLS.

As the other poster's all stated correctly, use the revised SP and then a deduct for the concession amount.
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
All of you are correct, of course, BUT, you do not adjust the SUBJECT for concessions.

If you do the report 100% correctly, however, the final value found will be $200,000, unless it was priced under the market.
 

RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
All of you are correct, of course, BUT, you do not adjust the SUBJECT for concessions.

If you do the report 100% correctly, however, the final value found will be $200,000, unless it was priced under the market.

Who said anything about adjusting the subject. The OP said it was a comparable sale he was going to use.
 

c w d

Senior Member
Joined
Oct 2, 2006
Professional Status
General Public
State
Florida
NM, I should have read the post completely. Doh!
 

Walter Kirk

Senior Member
Joined
Jun 24, 2003
Professional Status
Licensed Appraiser
State
New Jersey
list the sales price from the public record, discuss the sales concession and changed agreement in the report.
 
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