Bye, Bye "Z"s

By
Real Estate Agent with United Real Estate TX #0552717

Do you know what a "Z sale" is?

"Z sales" are about to become a thing of the past (after October 15, 2012) due to newly revised rules for our local MLS (NTREIS), so you may never run into a "Z sale" again. And in my opinion, it's about time.

When both buyer and seller agreed to not report the sales price of a home, that was a "Z sale." These types of sales are problematic for appraisers and for agents trying to do due diligence when helping sellers arrive at fair listing prices. Instead of a zero amount shown, the last list price is recorded, followed by the letter Z (i.e. $250,000Z).

Because Texas is a non-disclosure state, the purchase price of a home is not shown on the Deed of Trust. Disclosure is not a legislative requirement. On our deeds of trust, you'll find "$10 and other consideration" instead of the actual sales price. But MLS, a private subscription service that does not publicly distribute information to third parties, is now about to require participants to report all sales information, including the sales prices. 

The "Z" sale was intended initially as an exception, for privacy issues, for high profile government officials, and for celebrities. However, the rate of Z'ed sales rose from 1% in 2005 to over 2% in 2010. In some neighborhoods, the rate was close to 20%.

So, goodbye Z! I'm not sorry to see you go.

 

 

Posted by

Lorrie Semler, e-PRO, GRI, SRES, CPRES, CRS
Addison Resident/Addison Specialist                                                      Subscribe Button
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United Real Estate
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Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Hi Lorrie. I was not aware of "Z"Sales, but I am glad it's gone too. It was certainly not good for appraisers for determining the Home Values in various communities, that had omitted this sales information.

Sep 11, 2012 04:31 AM #1
Rainmaker
682,581
Diane Daley
Caron's Gateway Real Estate - Northumberland, NH

Never heard of a Z sale til now, not used in NH; sounds like a change for the better

Sep 11, 2012 04:40 AM #2
Rainmaker
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Donna Harris
Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com - Austin, TX
Realtor,Mediator,Ombudsman,Property Tax Arbitrator

There have been a couple of times where I wished we had the Z in Austin. Sometimes, when the sale is low but the seller is good with it, I rather post the higher price to help appreciation in the neighborhood.

Sep 11, 2012 04:40 AM #3
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Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417

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