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I didn’t realize it until thinking about my last post more that the car giveaway was another example of inflating the comparable price. The car giveway I blogged previously about also is giving away a car to the Buyers agent as well. If you deduct both car values and the commission off the price, the net price would be about 12% lower. Funny how people get so upset when Zillow reports a “zestimate” of a home that’s 10% off. The problem is that no one will know that a car was given away when someone looks up this home price as a comparable to determine a price for another home.

Also, adding the car price just for the Buyer into the purchase price of the home would mean $650/year increase in property tax (at 1%) for the value of the car in addition to the interest.

Unless I’m missing something, I’d take the $65,000 value of the car off the sale price of the home and let them keep the car so my loan and property tax would be reduced.

Written by Keith Byrd - Go to Keith's Website/Profile