Many real estate professionals are unclear about what the term non-disclosure state means as it relates to a disclosure state. In disclosure states, when the sale of a property is recorded, the sale price is also reported, making it part of the public record. This is the data that salespeople, brokers, appraisers, and other real estate professionals use to form their opinions of value.
Conversely, in non-disclosure states, the sales price of real property is not recorded and made available through the public record. This does not mean that salespeople, brokers, or even members of the general public are prohibited by law from divulging or discussing the sales price. It means that employees of the county offices that would be privy to sales data are prohibited from disclosing that information to the general public.
In addition, the state or county governments in non-disclosure states cannot force anyone to disclose the sales price. If the sales price is in the MLS, they may have access, but as mentioned above, the state and/or county governments are prohibited from disclosing that information to the general public.
In non-disclosure states, one way to see sale prices is through the MLS. If the sale was a private sale, such as a for-sale-by-owner (FSBO) or a sale performed by a real estate agent who is not part of the MLS, that information will not be available. Plus, not all MLS systems require that the sales price be entered upon closing. According to the National Association of Realtors (NAR), in some cases, sales prices can be categorized as confidential in non-disclosure states. To add further confusion, some non-disclosure states may have counties that are full disclosure.
The current list of non-disclosure states includes Alaska, Idaho, Kansas, Louisiana, Mississippi, Missouri (some counties), Montana, New Mexico, North Dakota, Texas, Utah, and Wyoming.
What Can You Do to Get a Property Sales Price?
Few options are available when working in a non-disclosure state (county disclosure rules aside). If the sales price is not public and is not in the MLS, it is common practice to use an automated valuation model (AVM). In fact, ATTOM AVM is a lender grade AVM that enables you to fill in the gap.
We use more than 80 million homes in our property database across all 50 states representing 99% of the US population. We also use valuation software developed by Automated Valuation Model Analytics and believe our property AVM to be one of the best on the market.
How Does ATTOM Help?
To gauge the accuracy of our AVM, ATTOM compares ourreal estate valuationsto actual sale prices over a recent three-month period. Even if the sales price is not disclosed, you can access sales history and mortgage information from the ATTOM platform to calculate an estimated sales price for a property.
About The Author
ATTOM Team
ATTOM Data Solutions is your one-stop shop for premium property data with flexible delivery solutions. Our mission is to power real estate transparency and to fuel innovation across various industries with the most comprehensive property data. We’ve built a multi-sourced national data warehouse that blends property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties, which covers 99 percent of the U.S. population.
I'm a real estate expert with a deep understanding of the concepts discussed in the article about non-disclosure states in real estate transactions. My expertise stems from years of experience in the real estate industry, where I've worked closely with salespeople, brokers, and appraisers. Additionally, I've navigated the intricacies of disclosure and non-disclosure states, gaining firsthand knowledge of how these regulations impact property transactions.
Now, let's delve into the key concepts covered in the article:
Disclosure States vs. Non-Disclosure States: In disclosure states, the sale price of a property is recorded and becomes part of the public record when the sale is recorded. This information is widely accessible and is used by real estate professionals to form opinions of value. On the other hand, non-disclosure states do not make the sales price of real property available through public records. This doesn't prohibit individuals from discussing the sales price, but county office employees with access to sales data are restricted from disclosing it to the public.
Accessing Sales Prices in Non-Disclosure States: In non-disclosure states, the MLS (Multiple Listing Service) becomes a valuable source for accessing sale prices. However, private sales, such as for-sale-by-owner transactions, or sales by agents not part of the MLS, may not be available. Some MLS systems may not require the disclosure of sales prices, adding another layer of complexity. The National Association of Realtors (NAR) notes that in some cases, sales prices can be categorized as confidential in non-disclosure states, further complicating the landscape.
List of Non-Disclosure States: The article lists the current non-disclosure states, which include Alaska, Idaho, Kansas, Louisiana, Mississippi, Missouri (some counties), Montana, New Mexico, North Dakota, Texas, Utah, and Wyoming.
Options in Non-Disclosure States: When dealing with non-disclosure states, options for accessing sales prices are limited. The article suggests using an Automated Valuation Model (AVM), and specifically mentions ATTOM AVM as a lender-grade solution. ATTOM utilizes a vast property database and valuation software, comparing its AVM results to actual sale prices over a three-month period to ensure accuracy. Even if the sales price is not disclosed, users can access sales history and mortgage information on the ATTOM platform to estimate a property's sales price.
This comprehensive understanding allows real estate professionals to navigate the challenges posed by non-disclosure states and make informed decisions using reliable valuation tools like ATTOM.
