[quote=bearishgurl]Meanwhile, the $7K, $12K, $20K or $30K in cash that a buyer “kicks in” to satisfy the “DS’s” 2nd TD/HELOC holder’s claim is NOT part of the purchase price and therefore in not included in the “sold comp” amount or as a starting point for the assessed value of said property. All the properties around that property (of the same model, block and/or tract) (even those of owners who purchased REO’s SINCE the bubble) have possibly just lost $7K, $12K, $20K or $30K in value. This is due to a new nearby “short-sale sold comp” which had an undisclosed-to-the-public portion of the sales proceeds “kicked back” to the previous owner’s 2nd TD/HELOC holder so these DS’s could be “released” and “come out clean.”
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BG,
I understand your complaint, especially from a seller’s/owner’s POV; however, buyers have to deal with the same mispricing issues on the opposite end — those “seller’s concessions” to buyers, for “closing costs,” etc. are often NOT deducted from the sales price, meaning that the comps are OVERvalued.
Either way, I think the whole “concessions” game need to be eliminated. It distorts prices both ways.
