What is the sale price?

[incognito]

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]

2. Because it more accurately reflects the terms of the transaction.

 

[RSW]

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]

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]

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]

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]

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.

 

[incognito]

Thanks, RSW.

 

[c w d]

NM, I should have read the post completely. Doh!

 

[Walter Kirk]

list the sales price from the public record, discuss the sales concession and changed agreement in the report.