OfflineI'm hunting around for comps for a duplex. I usually come across other property and it would say that it was bought for $1.00 or $5.00. I know that these homes haven't been bought with a dollar bill or a five dollar bill. What does that actually mean?
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They transferred the property to someone else, AND they were willing to get rid of it because they won't have to report all that $ except for the little measly amount sold for. It'ld be my 1st guess, though, and I know there are other ideas.
For the comps, I might try to see if yo can get any from a commercial RE agent/broker, dealing with multi-family properties. i know it's not more than a fourplex, and they may or may not be able to do it. If they don't, they can point you in the right direction.
Sometimes people use a Quit Claim Deed to transfer ownership to a spouse or a sibling or to a family trust, etc and they have to post an amount so they do $1.00 or $5.00 or something small. It goes on record as a sale even tho it isn't really being sold. (We did that with my Mom's house.) There may also be taxes involved so the amount is kept small.
When I see a small price like this, I go to the appraiser's site and look up previous sales on the property. Most of the time, it's just a transfer to a family member or trust. HOWEVER, you should always check because it could have been a gift to someone who doesn't want the house. It may have been willed to the new owner years prior and now something they need to deal with.
Hope this helps...
Andy Sager
DG's AndyS
Andy Sager
DG's AndyS
CFIC & IE member
2013, 2014, 2015 & 2016 EDGE Alumni
it may have to be moved
Thanks alot yall. So, Andy this was on a site showing SOLD prices for homes not FOR SALE. Should I still try to locate the owner about that? Could be a goldmine.
As I explained, the transfer of ownership from, for example, yourself to your living trust would be considered a sale so it would show up on a sold report. That's not to say that all of these transfers are for that reason.
What I would do is go the the Property Appraissor and research the address. Search the previous sales section so you can see the previous owner and who bought the prop for that low amount. If the owner's name is John Smith and the last sold is to John Smith Living Trust or say Mrs. John Smith, it most likely will not be worth persueing. Check and see if there was a recent divorce. If the name is different, do more digging. It's like being a detective
You need to find what relationship the new owner has to the old owner and if the old owner is deceased or has no relationship to the new owner, you may have a lead.
Hope this helps...
Andy Sager
DG's AndyS
Andy Sager
DG's AndyS
CFIC & IE member
2013, 2014, 2015 & 2016 EDGE Alumni