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Why Not Hide My Purchase Price?

In an attempt to keep taxes low some home buyers will specify that MLS not disclose the purchase price.

It’s not a good idea.

The appraisal district, seeing a deed transfer and a non disclosed price will typically propose a value in excess of what it feels the market will support.  Appraisal districts may do this to “smoke out” a protest at which the taxpayer (or agent) will be asked to produce the Settlement Statement.  If there’s no statement produced then obviously there’s no case for a reduction.

If the purchase price is less than the district’s proposed value then the Settlement Statement will provide evidence for a reduction.  But if it’s higher and the Settlement Statement is not produced, watch out!  For the consequences of secrecy, read this:

 

 

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