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Old 09-04-2011, 06:22 PM
 
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I know you can't accurately base the value of a property on the assessed appraisal. Also, while the listed sales price may or not not accurately represent the property's true value, I had always assumed that it represented the actual sales price.

But, I just ran across a situation recently where an acquaintance just agreed to buy a waterfront lot in a new development for about $40,000 under the asking price. But the seller asked the buyer to agree to pay the actual asking price so that it would be listed in the public records as such, but the seller is going to reimburse the buyer the $40,000. So in effect, all future buyers who do their homework will see that the first lot went for asking price, but in reality it went for $40k less.

So doe anyone know how commonplace this practice is? Obviously the sales price doesn't determine the value, but this is going to cause a dilemma if we can no longer trust the listed sales prices in an area.
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Old 09-04-2011, 06:34 PM
 
Location: Simmering in DFW
6,952 posts, read 21,296,384 times
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Lesson here: don't ever trust the listed sales prices, understand everything is negotiable; and you may not always get to know the true bottom line of a sale if you were not a party to the deal.

That said, I don't believe the transaction you described is common.
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Old 09-04-2011, 08:03 PM
 
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Thanks Squirl, good lesson to know.
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Old 09-04-2011, 08:07 PM
 
Location: Salem, OR
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Quote:
Originally Posted by TNobserver View Post
Thanks Squirl, good lesson to know.
I had this happen on a cash transaction once. It was the same situation. The developer wanted the land to appear at a certain price for future sales. It is very, very rare and they builder that wanted to do that with my buyers went into foreclosure. He was a horrible businessman.
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Old 09-04-2011, 09:16 PM
 
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But after the transaction done, if the seller turns back and doesn't want to reimburse the buyer and there's no legal document about this, just verbal, how can you prove it?
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Old 09-04-2011, 10:34 PM
 
Location: El Dorado Hills, CA
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Buyers frequently ask for closing costs of 3% of sales price, and sometimes other concessions due to the condition of the home. The full sales price is recorded in the MLS and tax records. Some agents do input the concessions in a separate area, but others leave a "call listing agent" note in the MLS. So in reality, the sale price (not the list price) is often overstated.
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Old 09-05-2011, 07:39 PM
 
Location: Fort Payne Alabama
1,932 posts, read 2,129,723 times
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Quote:
Originally Posted by AngelBy View Post
But after the transaction done, if the seller turns back and doesn't want to reimburse the buyer and there's no legal document about this, just verbal, how can you prove it?
It's normally listed on the HUD statement as a credit for "something", no cash changes hands.
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