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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Determining how much paid for a property... Posted by Ward-CA- on October 26, 2001 at 10:20 PM In Reply to: Determining how much paid for a property... posted by Alfred CA on October 26, 2001 at 8:26 PM : Hi Ward, : In addition to my comp work, the purchase amount from the last sale on a property helps to give me a better idea of what that value might be today. The internet sites I use for comping sometimes gives me that info. : My question is... let's say the internet site might state the last sale amount as being $230,000. I'm assuming they got that data from the TD/public records and that it is the loan amount. One would have to add the down payment (an additional 3%, 5% or 10%) to that amount to get a better idea of the actual sale price, correct? (In other words, the internet site -- or CMDC for that matter -- shows that a nice place in Glendale sold for 230K, but with the 10% down paymt, 253K was what was paid for it and is the real index of what the property was valued at at the time of the sale.) Am I confused or do I have this right? Thanks for your input. =•=•=•=•=•=•=•=•=•=•=•= Alfred, you know that to find the price paid for a property you’d first find the documentary transfer tax amount on the face of the Grant Deed and divide it by the local tax rate per thousand to determine how many thousands the owner’s equity was at the time of sale. If the property was free and clear the owner’s equity would equal the sales price. If the property was sold with any pre-existing lien(s) remaining thereon at the time of sale, then the owner’s equity would represent just part of the value of the property. To determine that part just divide the transfer tax that's declared by the local tax rate per thousand. Then add to it the amount of the remaining loans and you’ll have the total amount paid for the property. To make sure the transfer tax declaration was computed accurately you’d check around the periphery of the deed to find an escrow number reference, indicating that the document was prepared by an escrow officer—the best party suited to correctly prepare and fill out a deed. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Hi Ward, : : In addition to my comp work, the purchase amount from the last sale on a property helps to give me a better idea of what that value might be today. The internet sites I use for comping sometimes gives me that info. : : My question is... let's say the internet site might state the last sale amount as being $230,000. I'm assuming they got that data from the TD/public records and that it is the loan amount. One would have to add the down payment (an additional 3%, 5% or 10%) to that amount to get a better idea of the actual sale price, correct? (In other words, the internet site -- or CMDC for that matter -- shows that a nice place in Glendale sold for 230K, but with the 10% down paymt, 253K was what was paid for it and is the real index of what the property was valued at at the time of the sale.) Am I confused or do I have this right? Thanks for your input. : =•=•=•=•=•=•=•=•=•=•=•= : Alfred, you know that to find the price paid for a property you’d first find the documentary transfer tax amount on the face of the Grant Deed and divide it by the local tax rate per thousand to determine how many thousands the owner’s equity was at the time of sale. If the property was free and clear the owner’s equity would equal the sales price. : If the property was sold with any pre-existing lien(s) remaining thereon at the time of sale, then the owner’s equity would represent just part of the value of the property. To determine that part just divide the transfer tax that's declared by the local tax rate per thousand. Then add to it the amount of the remaining loans and you’ll have the total amount paid for the property. : To make sure the transfer tax declaration was computed accurately you’d check around the periphery of the deed to find an escrow number reference, indicating that the document was prepared by an escrow officer—the best party suited to correctly prepare and fill out a deed. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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