price on HUD statement not actual selling price? (incentive, appraisal, agent) - Real Estate -Brokers, appraisals, development, lease, investing, relocation, apartments, houses, condos, values, mortgages, loans... - City-Data Forum

Go Blue 99 · 10-17-2007, 04:31 PM

Last time we spoke, my agent mentioned that the selling price listed on a HUD statement does not include any incentives or promotions by the builder. Therefore, a builder could provide a buyer huge price discounts or free upgrades, and the these would not be reflected on the public record. She said this makes it difficult to see exactly how much new construction is selling for these days.
Is this correct? Is this why builders are offering sales price discounts- because the "official" sale price will still be inflated?

walidm · 10-17-2007, 04:38 PM

Interesting. To my knowledge anything that has to do with the sale must be reflected on the HUD.

i.e.
I am the listing agent and will buy you a cruise if you purchase the home. I can pay you as a principal to the transaction and buy you the cruise

; however, it must be reflected on the HUD or it would be Mortgage fraud.

To learn more you can check RESPA (Real Estate Settlement Procedures Act) which governs closing costs and settlement procedures.

RESPA

shellytc · 10-17-2007, 05:59 PM

If the purchase price to buy the house, includes the upgrades and incentives, then I don't think they would show on the HUD. The house has a screen porch and the appraisal came in fine, so why would you show it on the HUD? i.e. normal home price for this model is $300k, to add a screen porch is $5k. We will add the screen porch and your purchase price is $300k. why would that be on the HUD1?

Just like in resale you can get a frig and that isn't line itemed on the hud, house has to appraise and the frig isn't taken into consideration because it is personal property and does not affect the value of the real property.

Shelly

walidm · 10-17-2007, 07:02 PM

HUD does clearly show; however, that personal property attached to the sale should appear on the statement on its website here (http://www.hud.gov/offices/hsg/sfh/res/sc3sectb.cfm - broken link)

~I understand where you're coming from with the fridge, I'll ask my attorney the screened porch Q at closing tomorrow

....makes sense