the first couple sales often go to insiders, as it helps establish the sale prices for appraisals of the subsequent units
Bugs, that's very interesting. Are you saying the following ?
A John Doe bought the house at a specific price primarily to establish a "comp". That is:
1. He likes the house & wants to live there & is compensated (under the table) for paying an artificially inflated price. Or
2. He has no intention of living there & will sell it soon. And that he will be compensated (under the table) for the holding cost & transaction cost ?
