Legal Question in Real Estate Law in Wisconsin

Appraised Property Value

Is anything illgeal with buying a

home for the CURRENT appraised

value of property, not taking the MLS

listing price into consideration, then

negotiating with the seller for a price

they are willing to take. Example $

400,000 appraised value, seller will

take $ 350,000..house listed for $

380,000. The $ 50,000 is listed on

the HUD as a ''payment '' to a third

party not associated with the buyer

whereby the funds will be used to

upgrade the property.


Asked on 7/02/09, 3:02 pm

1 Answer from Attorneys
Thomas Moens Moens Law Offices, Chartered

Re: Appraised Property Value

You can negotiate any price you want, regardless of appraised value, assessed value, or listing price. However, the HUD-1 settlement statement requires that you list the actual amounts paid to actual people or entities. If you are trying trick the lender and get the seller to give money back to the lender by pretending it is going to someone else, it is fraud. Pick up a newspaper or search "mortgage fraud" on the internet and see why you might want to avoid committing mortgage fraud.

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Answered on 7/03/09, 12:06 pm


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