Background: One of our clients questioned our estimated sales prices for properties in specific counties in Texas. They wondered why some of the prices returned were estimated rather than actual prices.
Question: Why does Onboard have estimated home sales prices for some counties in Texas?
Answer: While most information concerning property transactions is available for public access, some states (or counties within states) consider the sale value to be private and confidential information which does not need to be disclosed. It is up to the parties involved in the sale as to whether the price will be disclosed. This decision is indicated by whether the price is recorded on the face of the property transfer document. If it is, then the price has been disclosed. If not, it has not been disclosed. Texas is one of 14 states that consider property transactions to be private.
Other Non-Disclosure states are: • Alaska • Idaho • Indiana • Kansas • Louisiana • Maine • Mississippi • Missouri • Montana • New Mexico • North Dakota • Utah • Wyoming
In the event of a non-disclosure on a particular property, other information may be used to estimate a sale price. Property information and ownership transfers with loan amounts and/or mortgage transfer taxes are generally indicated. In these cases, the standard practice is to estimate the sale amount by applying a calculation to the mortgage value for sales (not refinances). This formula is based up on a careful study of millions of sales and the ratio of the purchase price to the mortgage amount. There are several different formulas based on the type of sale and mortgage (FHA mortgages for example) and these formulas are industry standards.
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