Why An Asterisk After Some Sales Prices in the MLS?

Thursday, November 8th, 2007 @ 12:29 pm | Buyers, Market Trends, Real Estate, San Francisco, Sellers

To start at the beginning, the asterisk became a term of the sale either as apart of the accepted offer or sometime during the transaction.??Both the Buyer and the Seller agreed that the sales price would not be disclosed to the MLS and would be hidden on the public records at the close of escrow.?

Perhaps the real question is from whom would both parties want to hide the sales price??

The answer might be to protect one????s privacy from someone? – i.e. nosy family, friends, and/or neighbors, disgruntled ex-spouses or creditors, employers????/employees???? chit chat, the media, etc. etc. (?)

In the real estate world, the reason may have been that the Seller sold the property so high over the asking price that it was a bizarre one time event, or the Buyer bought the property so low under the asking price that it was embarrassing to the Seller and/or so awkward?to?disclose the real sales price to the unsuccessful bidders (?)?

In any case, without disclosing the real sales price the MLS, Zillow.com and Trulia.com and other????s sales comparable data bases become eschewed and it makes for juicy cocktail ??œreal estate??? talk.? After all so far in 2007, there?have been 51 MLS sales with undisclosed sales prices.

2007 to 11/10/07,  51 Properties Sold without disclosing their actual sales prices on San Francisco, CA MLS.

To hide from curious eyes, one’s sales price from?the San Francisco MLS and the public records is actually quite easy to do prior to the close of escrow.

Both the San Francisco MLS and the escrow holder will need mutual instructions from both the Buyer and the Seller:

(1).?? The San Francisco MLS needs a letter from the listing agent signed by the Buyer and the Seller stating the sales price is not to be disclosed by the MLS at the close of escrow and naming the sales date and the Buyer????s agent.? The MLS will then enter into their San Francisco MLS database the asterisk to the current asking price as the sale price on the closing date.

(2).?? Buyer and Seller will instruct their escrow holder to prepare the Grant Deed for recording at the close of escrow by adding?the?notation ??œSee tax on separate sheet??? to ??œThe undersigned grantor(s) declare(s) the Documentary Transfer Tax is … ??œ. ?The City and County of San Francisco????s Recorder????s Office will accept the notation as long as the documentary transfer tax paid on the actual sales price stated on that separate sheet at the time of recording.?

By the way, it may take those curious eyes several years to be able to approximate the?actual sales price at time of sale.???When the time comes that the San Francisco Tax Assessor has finally computed the Supplemental Taxes, several tax years have passed.? By that time, the current?tax bill will show only the current total assessed value of the property for public to see.?

Question: Would this be a term of sale you would consider or agree to do?



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