We find sale prices in our MLS statistics, on Zillow and on our property assessor's website. Can we believe what we see?
Historically, the recorded price might be overstated - perhaps the seller paid some of the buyer's closing costs, or included some furniture or a boat. Perhaps there were developer incentives, whether cash back, a car, lots of upgrades.
Lately, the recorded price might be skewed in the other direction and be less than the buyer actually paid. Some bank sales show the recorded price, but don't indicate that the buyer also had to pay the seller's closing costs, and perhaps had to pay several thousand additional dollars in back homeowner or condo fees.
You can be easily misled if you don't look beyond the recorded numbers. Here in St Petersburg we're finding that many of the recorded sales prices actually understate the reality.
I have noticed the same thing on occasion. Recently I came across a condo that sold for 15k less than what it showed in MLS. Big difference when the recorded price is $280k!
Sharon,
I've also wondered why people don't have a problem when they buy new construction...appraisals always seem to go through so it might effect the prices.
Hi Sharon,
Yep, it happens everywhere. Fortunately our MLS now provides a place for type of sale. I.e. standard, seller's concessions, etc. It's been a help when using the MLS. It's not the total answer, yet it has helped.
Our information is only as good as the data. If the data is screwed up the whole system won't work. We have been trying to correct this in Denver for sometime. I'm not so sure we have succeeded either.
kk
Hi Sharon, Happy New Year. In a day with technology so prolific and data so easily recorded with exceptions and explanations, wouldn't one think that our local county governments would want accurate data.
Sharon, we finally had to make a rule in our MLS to report the sale price. Then we have a field for concessions. The builders were recording the list price but when you went to the tax records it was different. It was hard to comp unless you really went and dug deep. They were trying to help future sales and it was not accurate data.
Sharon--What a great point...And few consumers really understand this. Those seller consessions can be quite high especially in relationship to some lower priced homes. Many times I am called by appraisers to verify facts in the MLS. I try to be as accurate as possible, but not all other agents are as diligent.
Hi Sharon, Zillow is particularly unreliable here in Texas because of the privacy act. Sold data is unavailable to the taxing districts so the information is seriously flawed. The taxing authority utilizes an "Mass Appraisal" process that takes a fraction of the data and extrapolates a number. It's a mess here in Texas and frankly I wish the sold data was available to all.
PS. I hope you are enjoying your new offices after that long move and that things are gradually returning to normal!!